If you ever find yourself facing a short-term financial crisis, it may occur to you that one way of securing funds quickly is to get a car title loan. Many people have found that taking out a loan that uses the title to their vehicle as collateral was just what they needed to help them get through a period of financial distress in their lives.
But what if your vehicle is a salvage title car—that is, one that has been “totaled” by an insurance company? Is it possible to still get a title loan on it?
The answer to that question is, yes! Let’s see how.
A car title loan is a short-term loan that allows you to borrow the money you need based on the value of a vehicle you own. This type of loan uses the title to your car (and not the car itself) as collateral. The loan company will hold the title until the loan is repaid. In the meantime, you continue driving your car.
Car title loans are particularly suitable for people who need additional funds fast.
A salvage title car is one that has been severely damaged, perhaps in an accident or flood, to the point where an insurance company decided it wasn’t worth repairing. In other words, it’s a vehicle that’s been “totaled,” meaning that it’s been declared a total loss.
When a car is totaled, the law requires that its title certificate must be clearly marked, or branded, as “salvage” so that the car’s status is clear to any potential buyer. It’s that “salvage” designation on the title certificate that identifies a vehicle as a salvage title car.
Normally, traditional lenders, such as banks or credit unions, won’t offer you a loan on a salvage title car. That’s because there’s a great deal of risk associated with a vehicle that’s so badly damaged that it’s been declared not worth repairing. Kelley Blue Book, for example, says that the typical salvage title car is worth only 20% to 40% of what it would be worth if it had a clear (that is, non-salvage) title.
However, there are specialty lenders who, under the right conditions, are happy to offer you a loan on your salvage title car.
What are the “right conditions” for you to get a loan on your salvage title car? TFC Title Loans is a major nationwide car title loan company. Here are their requirements for getting a salvage title car loan:
Before giving you a title loan, there are certain documents your lender will want to see:
Although it’s not always required, you may want to supply your lender with additional documentation, such as a mechanic’s statement regarding the condition of the car, receipts for any repairs that have been made, a state inspection report, etc. The more documentation you can supply to show a lender that your vehicle is a low risk, the better your chances of being approved for the loan. And it may even lower your interest rate.
With most online lenders, you can supply these documents using scanned or smartphone images that you upload to their website or send by email.
Here at TFC Title Loans we specialize in helping people get the funds they need quickly, without unnecessary hassle. Whether your vehicle has a clear title or a salvage title, we’re eager to work with you to get your loan application approved and funded in as little as 24 hours. So, please contact us to get your application started or call us today at 844-242-3543.