A question that we get often is: “Can I be approved for 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?
Typically, insurance companies write them off vehicles 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, a few title loan companies like Hyperlend 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 applying online.
The reason why there are so few lenders in Seattle or Miami that accept salvage titles is clear. Vehicles that are declared salvaged are often valued far lower than typical vehicles. That means your title loan value can be too low. At the least, the amount available to borrow with a salvaged title pink slip loan will always be less than your average online title loan.
What Are The Requirements For Salvage Car Title Loans?
There are requirements for your eligibility to get a salvage title loan. You’ll need to be the vehicle’s legal owner 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.
The title loan company will want to conduct a visual inspection in nearly every lending situation involving a salvaged or wrecked vehicle.
Salvage Title Loan Offers Near Me
Many borrowers will want to look for salvage title loans near me, as these companies are easier to work with and more trustworthy. It should be an easy choice between an online lender or a local company that accepts salvage title loans near me. A local lender allows you peace of mind when you can meet with them face to face and discuss your circumstances.
Even though an online 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 apply to when your loan is funded.