A vehicle floating title is a title that is not physically attached to the vehicle. 

The legal owner of the vehicle holds the title and can use it as collateral for a loan, but the lender keeps the physical title. 

If the loan is paid off, the lender returns the title to the owner.

It’s important to note that a floating title does not mean that the vehicle is not owned by the borrower. 

The borrower is still responsible for making payments on the loan and for any damage to the vehicle. 

If the borrower fails to make payments, the lender can repossess the vehicle.

If you’re considering a loan with a floating title, be sure to ask the lender about their policies and procedures. 

You’ll also want to make sure that you understand the risks involved in case the vehicle is damaged or stolen.

There are a few reasons why someone might choose to get a floating title.

One reason is that it can be easier to get a loan if the lender doesn’t have to worry about getting the title back from the borrower.

Additionally, if the borrower plans to sell the vehicle before the loan is paid off, they can do so without having to go through the process of transferring the title.

Another reason is that it can be cheaper to get a loan when the lender doesn’t have to pay for title insurance.

If you’re considering a floating title loan, make sure you understand all the terms and conditions before signing anything. 

You don’t want to end up paying more than you expected or having your vehicle repossessed because you couldn’t make the payments.

There are a few potential drawbacks of getting a floating title.

One is that you won’t have the title to the vehicle until the loan is paid off. 

This can be a problem if you need to use the title as collateral for another loan or if you want to sell the vehicle before the loan is paid off.

Another is that you could be responsible for paying off the loan even if the vehicle is stolen or totaled in an accident.

Additionally, if the lender goes out of business, you may not be able to get your title back.

Make sure you understand all the risks before agreeing to a floating title loan. It’s not right for everyone, but it can be a good option for some borrowers.