We have people applying all the time for salvage title loans and often they think they may not get much cash or even be approved because unlike a clean and clear vehicle title they are applying with a salvage title. But in some cases, you may be able to get cash for the equity in your vehicle, even if that car has a rebuilt or salvage title. Let’s identify ways you can be approved for a title loan and the different types of car titles.
A salvage title is assigned to a vehicle that was previously labeled a total loss by an insurance company. In most scenarios, these cars are damaged to the extent that they require extensive repairs. The cost of repairing the car is more than it would be worth at market value – resulting in a total loss for the vehicle owner.
Salvage vehicles are often sold to dismantlers or junkyards where their parts can be used on other cars. In order to transfer ownership from an insurance company to you, the policyholder, a state will issue a “rebuilt” title. When you have a salvage title you have a vehicle that still runs, but is likely worth far less than what it would be with a normal car title or “pink slip”. The good news is that salvage titles and even rebuilt titles still carry value and can always be used to show equity for online title loans. The amount you qualify for or borrow may be lower than what’s typically expected, but low mileage, newer vehicles with a salvage title can still net you thousands of dollars with a title loan online.
With short term car title loans, there isn’t much information needed on your part when applying and that’s still the case when you have a salvage title.
When applying with Car Title Loans 123 we will first request proof of the actual title. Of course, your title is either rebuilt or salvaged, but it still shows you are the owner of the vehicle and it will reflect any current liens or loans that are active against the title. Besides the title, we require you to present proof of current insurance on the vehicle.
Once we have those items, you can apply for a no-obligation salvage title loan with us and find out how much cash you qualify for. The next thing is that if your car has any problems or issues it will not affect the amount you are approved for on a title loan – but it will affect what kind of interest rate and loan amount is available for your situation.
Bad credit is common for people who apply for car title loans and most lenders won’t even run a traditional credit check. You may assume that because your vehicle has a salvage title then you’ll be diagnosed with having bad credit, which means you will have high interest rates, but our online application doesn’t ask about your credit score so don’t worry about having low or bad credit. We only need proof of the car title, proof of your current insurance, and your driver’s license.
You can apply for a salvage title loan with Car Title Loans 123 on any vehicle you own that has a salvage title – including newer low mileage cars and trucks, motorcycles, and RVs. Similar to when you apply for a typical auto title loan or RV title loan, anything that has equity and can serve as collateral for your loan will qualify and get you quickly approved. Our online application doesn’t ask about the condition of your salvage or rebuilt car title but that may be something that comes up during the underwriting phase.
The amount of money you can get for a car title loan will often be higher than what’s available from a loan with a salvage title. But that doesn’t mean it’s a small amount. People turn to title loans to get more money than what’s normal with a payday loan or even a personal loan and that’s still true on loans for salvage title cars. The average amount you can expect to get with salvage title loans will be around 40-55% of the vehicle’s resale value. So let’s say you have a rebuilt or salvage car that’s worth $6,000. In a normal situation, you may be able to get $3,000 from a licensed title loan company.
The short answer is that you can get a title loan for as long as you need to – whether it’s 4 months or a year or more!. Title loan lenders don’t require any pre-payment on your car title loan before maturity which means you can make monthly payments or wait till the end of the term to pay off the balance. There is of course interest that is charged with your salvage title loan, but these rates are in line with what you would see from other companies who offer title loans online.