A car title loan is no longer a new term in the world of
finance. It’s a type of
secured loan
which allows you to use the clear title of your vehicle as
collateral
to borrow money. But what if your car has a salvage title?
If you own a car with a salvage title or are tempted to buy
a vehicle with a salvage title, you would definitely want to
know if you can still get a
title loan. The answer is probably “yes”.
The dictionary meaning of the term salvage could make you
ponder whether having a salvage title is good or bad. So
here we are to help you have a better understanding and
knowledge of a
car title loan
with a salvage title.
What is a Salvage Title?
If you read “Salvage” marked on a car title it means that
the car has been totaled, or otherwise has suffered damage
to the extent that the insurance company considers it to be
uneconomical to repair.
The leading causes of salvage title are damage due to a
massive crash, fire, theft, flood or any other natural
disaster. Generally, an insurance company assesses the
damage and declares a car totaled. It is then that the
vehicle gets a salvage title.
In some cases, a vehicle that has been rebuilt using parts
of other cars is also called a salvage car and its title
becomes a salvage title.
It is also important to know that the actual designation of
a salvage car varies from state to state, so it’s always
better to check your state's laws on salvage title vehicles
for more details.
Difference Between Salvage and Rebuilt Titles
Often people get confused between the terms salvage and
rebuilt title when searching for a used car. The definition
and guidelines of a salvage title and rebuilt title depends
on the state in which you live.
However, in general, a rebuilt title is issued to a car that
was previously a salvage vehicle but has now been repaired
and restored to be back on the road again.
|
Salvage Title
|
Rebuilt Title
|
Condition of the Vehicle
|
Damaged or totaled
|
Reinstated
|
Permission to Drive
|
Cannot be driven
|
Driven only after an inspection
|
Should You Buy A Car With A Salvage Title?
You can easily spot a salvage title car with its
suspiciously low price and that’s what makes it a tempting
proposition to buy. But would it be wise to buy a car having
a salvage title? There are a lot of factors to consider when
you buy a salvage title vehicle. One of the most crucial
factors that can decide your buying decision are the laws
pertaining to salvage vehicles in your state.
Certain states don’t legally allow a car with salvage title
on the roads. On the other hand, there are some states that
permit a rebuilt car to be driven on the open road again
after a thorough vehicle inspection. Hence, it’s always
better to check your state’s DMV guidelines before you
purchase a vehicle with a salvage title.
Can You Get a Title Loan on a Salvage Title?
Yes, you can get a title loan if you have a vehicle with a
salvage title in some cases. There are many lenders who make
it easier for you to get funds using your car title. Some of
these lenders also don’t mind providing you a title loan
using your salvage car title.
A salvage title loan can be a convenient way to get cash for
those who have a
bad credit
history. The fact that a salvage car is affordable and you
might have bought it by paying in full, you can always
consider getting a title loan on a salvage title and find it
easier to repay the loan in equal monthly installments now.
How to Qualify for a Title Loan if Your Car is Salvage?
Different lenders have different loan requirements for loans
on a salvage title. This means if one lender turns you down,
there can be another lender who may be willing to work with
you. At CASH 1, the
requirements
for getting a salvaged title loan are more or less the same
as getting a regular car title loan.
You can easily qualify for a loan if you fulfill all the
requirements and present all the necessary documents to your
lender. Many salvage title loan lenders ask for complete
documentation of the damage caused to your car along with
the receipts of the repairs done to make the vehicle
roadworthy. Apart from that, here are the common
requirements to qualify for a loan on a salvage title:
-
You should be the owner of the car and have the car title
in your name.
-
You must have proof of your monthly income like a paystub
or bank statement.
-
You should have a government-issued ID like Driver's
License or State ID card.
-
You must have proof of residence like a copy of a utility
bill or lease agreement.
How Much Could You Get with a Title Loan if Your Car is
Salvage?
Just like a title loan, your loan amount for a salvage title
loan depends on the value of the vehicle, your ability to
repay and the state you reside in. The value of your vehicle
is determined by various factors like the vehicle’s
condition, make and model, mileage, age, and also its title
type. This implies that a salvage title can impact the value
of your car to some extent.
While you may think that vehicles with a salvage title might
always have a lower value than a car with a clear title,
that’s actually a wrong perception. If you consider any
premium elite vehicle with a salvage title, it could be
possible that its worth could be still greater than that of
a regular vehicle.
You can ask your lender to help you determine the value of
your vehicle and the maximum amounts of money that you can
borrow from a title loan.
Where can you get a Salvage Title Loan?
As we mentioned earlier, salvage title loans work
differently in every state. While some states don’t allow
lending title loans at all, there are states with fewer
restrictions. Depending on where you live, the criteria to
get a title loan on salvage title can vary. Thus, it’s
important to do your research and find a lender who is
willing to finance a salvage title vehicle in your state.
We at CASH 1 offer title loans on restored salvage titles in
Arizona. If you are looking for an easy and inexpensive way to
borrow funds then you should know that salvage title loans
can be a wonderful option.