Most of the borrowers we run across have car titles that are clean and clear. That means the vehicle is paid off with no liens or loans that could cause issues during the application process. On the other hand, some title loan applicants have what’s called a salvage title. Getting a car title loan with this type of pink slip will be more challenging. That doesn’t mean it’s impossible to get funded. Just like lenders who provide title loans to consumers with bad credit, they will also work with those who have vehicle title issues. Let’s break down what a salvage title is and what the available options are.
Salvage Title Loans – What Is It & How To Get Approved With One
If you have a salvage title, your vehicle has either been in an accident or damaged. Examples of damage include flooding and other human-caused events. In these situations, the insurance company sees the cost of repairing the vehicle as more than what the vehicle is worth. The car is sold or repaired, and a new salvage pink slip is issued. This situation happens more often than you would assume.
The CDC estimates there are over 5 million vehicle accidents a year. Many vehicles involved in these accidents get fixed up and brought back with a salvage title. That leads us to the question: can a borrower get funding for the vehicle if it’s been reconstructed? The short answer is, yes you can qualify for a car title loan online with a title that’s been salvaged. Much like some companies won’t provide funds for poor credit consumers, some lenders don’t. The good news is that, more often than not, you should be approved with a salvage title. Let’s discuss what you need to know if you find yourself in this situation.
I want a title loan. What’s required if I have a salvage vehicle title?
As long as your vehicle has equity and is free of liens, you will have no issues getting approved by many top online title loan lenders. We all know it can be confusing to understand how a car title loan works! We’ve seen some borrowers run into issues with salvage titles where they don’t get as much as they had hoped. This happens because the lender needs to protect their investment. They know this type of pink slip doesn’t provide enough equity as a typical vehicle with a normal pink slip.
One interesting thing to note about salvage vehicles is they often run great. Many of these cars have had recent inspections and unnecessary tune-ups. Compare them to cars that have gone a while without a checkup. A newer automobile will often run better and longer under the circumstances. The only knock on them is that they don’t come with a normal vehicle title and that’s why the amount you can borrow will be limited with a salvage title. Run the numbers and get an initial estimate of your monthly payment and APR using our title loan calculator. Once you have a detailed quote, you can then move on to comparing different loan companies.
Apply for a salvage title loan online or with a lender near you
As with all online loans, you still must provide the important details. Your lender will ask for proof of residence and income. You will need to provide proof of identity, pictures of your vehicle, and of course hand over the pink slip to your lender. Like installment and payday loans, car title loans come with an APR that can be excessive. Don’t pursue this type of financing if you have alternative methods of getting cash. Most companies that provide online title loans have standard application requirements. They ask for an in-store visit as a way to view the vehicle.
Always expect an inspection to verify the current condition of your car. It’s worth mentioning that these requirements may be more strenuous for those with a salvage vehicle. Don’t let that bother you or keep you from getting financing. The lender is only taking extra steps to verify and inspect the vehicle because of what the underwriting process entails. Please contact Car Title Loans Today or your lender with further questions or concerns about a salvaged pink slip.