Salvage cars have been involved in accidents or other incidents and may have been declared a total loss by insurance companies. Luckily, it’s possible to leverage your salvage car’s value if you need money to cover expenses, whether you have an unexpected medical bill or need to make home repairs. If you have a salvage car and need money fast, you may be wondering if you can use it to get a title loan. Here’s what you need to know.
What is a Salvage Title?
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A car with a salvage title has been involved in some kind of damage, like an accident, fire, or flood, and the damage may cost about as much as or more than the car’s value to repair. The final say on what is considered salvage varies from state to state, so you’ll want to check your state’s laws.
Can I Qualify for a Title Loan with a Salvage Title?
If you own a salvage car and need money fast, you may be able to get a title loan. Even though your car was previously damaged, you might still get a decent loan amount using the salvage title as long as the car and title are in your name, your car still has some value, and it has no other liens. As with a traditional title loan on a non-salvage vehicle, there is specific documentation you’ll need to provide. That includes:
1. The salvage title in your name:
As with title loans on non-salvage vehicles, you’ll need to have the title in your name with no liens, unpaid parking tickets, or other outstanding loans.
2. Government-issued ID:
You’ll need to present a non-expired government ID like a state identification card, driver’s license, or passport.
3. Proof of residency:
You’ll need to provide a piece of mail that identifies your address. Consider bringing a phone bill, utility bill, or credit card statement.
4. Proof of income:
To verify you can repay the loan, you may need to provide lenders with proof of income like a paystub, social security benefit document, or unemployment information.
How to Get a Title Loan on a Salvage Car
When deciding whether to approve you for a title loan with a salvage title, the number one thing lenders look at is the vehicle’s value. While your salvage title may not be worth as much as a normal title, you might still get a good loan amount. For instance, a classic or luxury car with a salvage title might have a high value even though its condition isn’t pristine. Before you seek out a title loan, assess the car’s value by entering specifics online and using a title loan calculator.
In addition to the car’s value, lenders also want to be sure you can repay the loan. So, showing a stable source of income may put you in a good position to get approved. If a lender approves the request, you can generally get access to cash for your salvage car title within the same day.
As with any secured loan, be sure to understand the loan terms and repay the amount due on time, or the lender can repossess the vehicle and sell it to recoup the loan amount.
The Bottom Line
It’s possible to use the value of your salvage car to qualify for a title loan. But ultimately, whether or not you can get a title loan on a salvage car will depend on the car’s value and your ability to repay the loan. Shop around to check the requirements of various lenders in your area, then apply for a title loan with the most favorable rates and loan terms for you.