<prompt> Human: The scam companies in poorer areas that take advantage of the naive and sell your car when you inevitably dont pay the loan back. Someone tell me why these companies are so bad because my girlfriend seems really intent on going and doing this with our current car to get a new one.Assistant: Do you mean car title loans, where you use your car as collateral? Human: Car as collateral, sorry I should have specified.  <response>: my girlfriend seems really intent on going and doing this with our current car to get a new one.So she is going to use a title loan from your first car to buy a second one?That is just an absolutely terrible idea. Title loans are bad to begin with. Theyre extremely high interest, and if you fail to pay, they will sell your car, and youre still on the hook for the difference between what it sells for and what you owe.Im also not sure what her plan here is, do you need a second car, or was your plan to sell this car and buy a new one with the sale proceeds title loan? Because that wont work, as long as you have an outstanding title loan, you basically dont own the car. You cant sell it until that loan is paid off.If you need a second car, just get a regular auto loan through a bank or a dealer, it will be at a lower rate than whatever you get via a title loan. Better yet, save cash and buy a used beater, because if title loans are something you were considering, then youre probably in no financial position to take out an auto loan. 