Financial crises happen in life, and none of us are immune to it. Sometimes having extra cash at a critical moment can make all the difference rebuilt title loans, can get you the money.
Many people have gotten the funds they need to make it through a financial emergency by taking out a title loan on a car they own. But what if your car has a rebuilt title? You may be wondering, can I get a loan for a rebuilt title car?
This article was brought to you by TFC Title Loans, we try to bring to you the most informative information. If you are interested in getting a title loan near you, we are able to help you with our large referral network.
All of our referral partners are in compliance with the CFPB.
What is a rebuilt title?
To understand what a rebuilt title is, we first need to look at salvage titles.
A car is given a salvage title when it has been so badly damaged that the insurance company decided it was not worth repairing.
In other words, a salvage title car is one that has been “totaled,” meaning that it is been declared a total loss.
The law requires that the term “salvage” must be marked on the title certificate of any totaled car so that potential buyers are alerted to the vehicle’s damage history.
Salvage cars are not considered roadworthy, and in most states cannot be driven on the street or sold.
But if a salvage car is subsequently repaired so that it’s restored to a safe and roadworthy condition, it is status can be changed.
Qualifying For Rebuilt Title Loans
After it passes a state inspection to verify that it is fully operable and safe to drive, the car will again be allowed on the roads and can be sold.
To indicate its history of having been severely damaged and then repaired, the term “rebuilt” is marked on the vehicle’s title certificate in place of the “salvage” designation.
So, a rebuilt title refers to a vehicle that was severely damaged and then restored to good running order.
Note that although a rebuilt car may run well, it will never again be eligible for a “clean” title (a clean title indicates that while the car may have suffered some damage, it is never been totaled). Vehicles that don’t have a clean title always have a lower fair market value than similar vehicles that do.
What is a title loan?
A car title loan is a short-term loan that uses the title to your car title as collateral. With this type of loan, the loan company holds the vehicle’s title, rather than the vehicle itself, until you repay the loan. That means you can keep driving your car while you are paying off the loan.
Car title loans have often been a lifesaver for people who need extra money fast.
Can I get a title loan on a rebuilt title car?
The short answer to the question of whether you can get an auto loan for a rebuilt title car is, yes, you can!
But because of the rebuilt title, getting a title loan may be more difficult than if the car had a clean title. For example, although a rebuilt title car will have passed a state inspection to certify that it’s fully drivable, that does not mean all the original damage was corrected.
There may well be hidden damage that is not revealed by a visual inspection. So, potential lenders have difficulty assessing the real market value of the car. As Kelly Blue Book notes:
A salvaged, reconstructed or otherwise “clouded” title has a permanent negative effect on the value of a vehicle. The industry rule of thumb is to deduct 20% to 40% of the Blue Book Value.
That is why traditional lenders, such as banks and credit unions, are reluctant to offer loans on such vehicles.
Rebuilt Title Loans Near Me
There are lenders and brokers who specialize in handling such loans. TFC Title Loans, for example, is a major nationwide car title loan broker that, if you qualify, will be happy to provide a title loan on your rebuilt car or other vehicles.
What does it take to qualify for such a loan? Here are the requirements for getting a rebuilt car title loan:
- You must provide a valid rebuilt title certificate in your name to prove that you are the legal owner of the car.
- The car must be fully operable and roadworthy. A lender will inspect your car, at least briefly, to verify that it is in good enough condition that its market value is not compromised.
- You must be able to demonstrate that your income is sufficient for you to make your monthly loan payments. The good news about this, for many people, is that if you show you can make the payments, your credit rating will not be an issue. Because you are offering the car’s title as collateral, you do not have to have good credit to be approved—having bad credit, or even no credit, will not necessarily disqualify you. The lenders, will check your credit score, but only to be sure that you are not currently in bankruptcy or undergoing credit counseling.
- You must have sufficient equity in your car for the amount you want to borrow. Equity is simply the fair market value of the vehicle, minus any outstanding loan balance.
Unlike the majority of lenders, who will only lend you about 50% of the fair market value of your car, if you own your car free and clear (there’s no outstanding loan balance or lien against the title), we will get you up to 85% of the Kelley Blue Book value. And even if you still have a few payments to make on an existing non-title loan, if you have enough equity in the vehicle, you can still qualify for a title loan!
Frequently Asked Questions About Rebuilt Car Title Loans
- What is a rebuilt car title loan? A rebuilt car title loan is a type of title loan offered on vehicles with a rebuilt or salvage title. These titles are issued for vehicles that have been significantly damaged and rebuilt or repaired to be roadworthy again.
- Can I get a title loan on a car with a rebuilt title? Yes, some lenders may offer title loans on vehicles with rebuilt titles, but eligibility and loan terms may vary. Lenders typically assess the vehicle’s current market value and condition to determine the loan amount and interest rates.
- What are the differences between a regular title loan and a rebuilt car title loan?
- Title Condition: Regular title loans require a clear and unencumbered title, while rebuilt car title loans accept vehicles with rebuilt or salvage titles.
- Loan Terms: Loan terms for rebuilt car title loans may differ, with lenders potentially offering lower loan amounts or higher interest rates due to the vehicle’s history.
Quote from Daniel Joelson, Consumer Finance Expert: “Rebuilt car title loans can provide financing options for vehicles with salvage or rebuilt titles. However, borrowers should be aware of potential challenges, such as higher interest rates or stricter eligibility requirements, when seeking loans on rebuilt vehicles.”
If you need a rebuilt title loan, TFC Title Loans can help!
Here at TFC Title Loans, it is our mission to help people like you get the funds you need to make it through difficult financial times in your life.
If you own a car with a rebuilt title, and you need additional funds right now, we can help you get your loan application approved and funded in as little as 24 hours.
So, please contact us to get your application started today or call us today at 1-844-242-3543.
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