Can you get a title loan on a salvage title?
In most financial institutions, getting a title loan is difficult, and in most cases, you will be up to a big disappointment because 99% of these financial outlets don’t give title loans. The situation is even worse when your car has a salvage title That said, does it mean that one cannot get a title loan with a salvage title? This is quite debatable, but the truth is that you are not completely locked out if your car has a salvage title.
Title Loans and salvage title
Before we proceed further, let’s be clear and understand everything that goes on when you apply for a car title loan with a salvage title. A title loan is a form of credit used by most American to quickly solve emergency cash problems. It’s also a convenient way for those who have bad credit history to get cash. In a title loan, a person will only use his vehicle or motorcycle as collateral until he repays the loan in full. The loan amount is usually 50% of the total value of the vehicle or motorcycle. Title loans have a thirty-day repayment period, but the duration is extendable under agreement between the creditor and the borrower.
On the other hand, a salvage title is a form of documentation provided to a car that previously had an accident or damaged in some other way. The damage to a salvage title car is often more advanced to an extent where the insurance company writes it off as not worth repair expenses. In most states, a car will automatically obtain a salvage title if its expenses are more than 75% of its total worth.
Getting a title loan with a Salvage title
Getting a title loan with a salvaged vehicle is not expensive as some people think. Given the current economic situations in the country, these loans are becoming common. The only challenge that comes with salvage title loan is that most people are not willing to give you a title loan, and if they do, they will try and undercut the vehicle's value and charge high-interest rates. Those who have salvage title must look for title loan company such as Loan Cheetah to finance them.
On average, cars that contain salvage titles have values that range between 55% and 60% as the KBB indicates in the Private Party Value. When you apply for a salvage title loan, you won’t notice much difference with a normal title loan. The only difference that might occur is the valuation process where the creditor has to investigate the title. The loan amount given is also slightly lower than a normal title loan.
Requirements for Salvage title loan
The requirements to get a salvage title loan, you will use the same documents needed when you apply for a title loan. The creditor will require an original national ID or a driving license, latest insurance coverage, proof of regular income and contact details. The requirements vary by each company and state. Some states require insurance coverage on a salvage vehicle to help minimize the drastic impacts of defaulting while others don’t require insurance for the titles.
Where can you get you get a salvage title loan?
Title loans are available almost everywhere in the country. However, the degree of service delivery varies with each company. You can just move around your town or ask your friends about prospective companies. Also, there are online outlets like Loan Cheetah that offer title loans at your convenience.
That said, Salvage title loans are possible, but you have to extra homework. Always be ready to go into a transaction with an open eye and know what you want. These loans are much inexpensive if you are vigilant and smart enough to identify those who want to siphon money from you.