29 Jun 2021   /   0 comments

Can you get a loan on a salvage title car?

loan on a salvage title car

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 salvage 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.

Salvage Title Loans

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.

What Is a Title Loan?

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.

What Is a Salvage Title Car?

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.

How Can I Get Salvage Title Loans?

If you want to get a salvage title loan, you must have a vehicle that had enough equity in it, as long as you have enough equity in your vehicle, we will be able to help you.

Can I Get A Salvage Title Loan With Bad Credit?

If you have bad credit, do not worry, we will still be able to help you get your salvage title loan, as we do not approve you based on your credit, we will approve you on the equity that you have in your car.

Can You Get A Title Loan on a Salvage Title?

Normally, traditional lenders, such as banks or credit unions, won’t offer you a loan on a salvage title car. But we are able to help you to get a title loan on a salvage title.

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.

 Requirements For Getting A Salvage Title Loan:


  • You must have a valid car title certificate (sometimes called a pink slip) in your name, showing that the car legally belongs to you.
  • The car must be roadworthy and not significantly damaged because of an accident. TFC, for example, will briefly inspect your car to verify its condition.
  • You must have enough income to make your monthly loan payments. Note that because the title to the car is collateral, getting a loan doesn’t depend on your credit rating. Having bad credit, or even no credit, won’t necessarily disqualify you. Although a lender like TFC will check your credit score, it’s only to verify that you’re not currently in bankruptcy or undergoing credit counseling.
  • You must have sufficient equity in your car. Equity is simply the fair market value of the vehicle, minus any outstanding loan balance. Most lenders will only loan up to 50% of the appraised fair market value of your car. But, if the car is totally paid off, TFC will loan you up to 85% of the Kelley Blue Book value. And even if you still have a few finance payments to make, if you have enough equity in the vehicle, you can still get a title loan!
  • You must have proper documentation, as explained below.

What Documentation Do I Need For Salvage Title Loans?

Before giving you a title loan, there are certain documents your lender will want to see:

  • Title certificate — Before you can receive a loan on your vehicle, it must be clearly established that you legally own it. That’s done by providing a title certificate in your name.
  • Proof of your identity — You must provide documents, such as a driver’s license, state ID, passport, etc., to verify your identity.
  • Proof of your residency — You are only permitted to get a title loan from the state where you live. So, you’ll need to provide documentation, such as a utility bill, phone bill, house deed, or a lease receipt, to establish your address.
  • Proof of your income — A lender needs documentation to verify that you have enough income to make your loan payments each month. This could be a paycheck stub, a bank statement, a Social Security benefits statement, etc.
  • Proof of insurance — You must have comprehensive coverage for your car so that its fair market value is protected if it should be involved in an accident or suffer other damage.
  • Pictures of your vehicle — Photos are required to verify the general condition of the vehicle.
  • References — You’ll need to provide detailed contact information for at least two personal or professional references.

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.

If You’re Looking for a Salvage Title Loan, We Can Help!

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.


Related content:

How Much Cash Can i Get?

    General Terms and Conditions.

    © TFC Title Loans
    All Rights Reserved

    Follow Us

    Lenders Law Licence Number by DBO 6038192