In most cases, Lily would not be able to get a title loan while she is still paying off her vehicle loan. This is because a title loan requires the borrower to own the vehicle outright, with no existing liens or encumbrances on the title.
When a person takes out a vehicle loan to purchase a car, the lender typically places a lien on the title as collateral until the loan is paid off. This means that the lender has a legal claim to the vehicle until the loan is satisfied. As long as there is an outstanding balance on the vehicle loan, the lender retains the title, and Lily does not have full ownership of the vehicle.
Since a title loan requires the borrower to use the vehicle's title as collateral, Lily would not be able to obtain a title loan until she pays off her existing vehicle loan and receives clear title to the car. Attempting to get a title loan while still paying off her vehicle loan would likely be unsuccessful, as the lender providing the title loan would not have clear ownership of the vehicle's title to use as collateral.
It's important for borrowers to fully understand the terms and requirements of any loan they are considering, including whether they have clear title to the collateral required for a title loan. Additionally, borrowers should be cautious of lenders who may offer title loans without verifying clear title to the vehicle, as this could indicate a predatory lending practice