A question that often pops up is: “Is it possible to get a title loan with a salvaged car title?” The answer to this question is yes; however, you need to know how it works and what the limitations are when it comes to using a salvaged vehicle title as collateral for a title loan.
What’s A Salvaged Car Title?
A salvage vehicle is one that has been totaled out and could never be repaired or sold in its current condition. When this happens, there isn’t much of a point in letting the vehicle sit around; so insurance companies write them off as salvage cars and pay you for your loss using an auto insurance settlement check. However, you will receive the check minus your deductible (if you had one), which means if your car was insured for $5000 and you had full coverage the lender will write you a check for that full amount.
Will Any Title Loan Companies Accept A Salvaged Title As Collateral?
Yes, there are a few title loans that will accept your salvage car title as collateral. There aren’t very many of them out there, but you can find one near you by doing a quick search on the Internet. The reason why there are so few lenders that accept salvage titles is clear. Vehicles that are declared salvaged are often valued far lower than typical vehicles. That means the amount you have available to qualify for a car title loan can often be too low. At the least, the amount available to borrow with a salvaged title pink slip loan is always going to be less than your average online title loan.
Always read the small print carefully before entering into any type of transaction like this, because there may be conditions attached including a higher interest rate or a lower amount of money based upon the current value of the vehicle. Make sure you’re willing to live with these terms before signing anything.
When trying to determine if a title loan will be possible for you after your car was declared a total loss, the first thing you should do is contact your lender directly. There may be a way for you to go about getting a title loan with a salvage car title that only becomes clear when speaking directly to them, or they may tell you right away that it’s something they can’t work with.
What Are The Requirements For Salvage Car Title Loans?
The first thing you should know about getting a title loan with a salvage car title is that there are requirements for your eligibility. You’ll need to be the legal owner of the vehicle and still own it. Also, you cannot have any liens on the car, or else they would need to be paid off before it could qualify as collateral for title loans. Finally, you must be able to prove vehicle ownership so documents such as registration and insurance papers will need to be provided.
In nearly every lending situation that involves a salvaged or wrecked vehicle the title loan company will want to conduct a visual inspection. That’s because the car was most likely in a serious accident or something else happened where the car was seriously damaged. The lender will need to verify the current condition of the car before signing off on a loan contract.
What Are The Benefits Of Getting A Title Loan With A Salvaged Car Title?
Getting a title loan is very beneficial because interest rates tend to be much lower than typical credit cards and you can access the equity from a salvaged vehicle. Many people turn to this method because they have bad credit and can’t be approved for a bank loan or even a payday loan. Having bad credit is not going to be a problem for most who apply for this type of secured loan. The underwriter mainly wants to know the vehicle’s value.
Salvage Title Loans Near Me
Many borrowers will want to look for salvage title loans near me, as these types of companies are easier to work with and are more trustworthy. It should be an easy choice between an online lender or a local company that accepts salvage title loan near me. A local lender allows you the peace of mind where you can meet with them face to face and discuss your circumstances.
Even though an online title loan company is licensed in your state and allowed to offer same day funding it may be easier to work with a salvage lender near you. The company will be able to conduct a full inspection when you meet with them and the process will take a much shorter amount of time from when you submit the application to when your loan is funded.