Accidents on our roads can only be minimized, it is difficult to eliminate accidents happening. When a car is involved in an accident and it is damaged seriously, it is likely to be towed away from the wreckage site.
Most of these types of cars seriously damaged are usually termed as a total loss by insurance companies.
When a car is seriously damaged in an accident such that more than half of its value is eroded, the insurance company is left with no choice but to issue a salvage title.
What is a Salvage Title?
A salvage title gives to a damage car that is beyond repair or a car that is created or assembled by using parts from other cars. These kinds of cars are branded as salvage vehicles.
Advantages of a Car with Salvage Title
The only advantage of a salvage car title is that the car is extremely cheap and affordable. As this type of car is known to have very low equity, as a result, they have a low worth.
You can purchase a salvage car as a backup to your other car. they are suitable for making short trips and not for traveling far distances.
If you need a car that is just meant for running errands and moving with the neighborhood, you can look out for a salvage vehicle that can serve such a purpose.
Disadvantages of a Car with Salvage Title
The major disadvantage of a car with a salvage title is that it can be very difficult to find insurance coverage for such a car.
This is because cars in this category are seen as a burden or liability and as such insurance companies do not want to take risks on such types of cars.
Cost of damage car repair can be very high and this is why most people prefer to part with such cars. However, they are not worthless.
Getting a Loan with A Salvage Title
You may be wondering if you can get a car title loan with a salvage title. Yes, you can secure a title loan with a salvage title.
To secure a car title loan with your car, you would need to repair the car such that you can now drive it around.
When you apply for a car title loan with such a car, the State Patrol will inspect it. Also, verify the ownership of all the vehicle parts and review all your documents.
If all your documents are in order, then you can get approval for a car title loan with your salvage car.
Here are the documents you need to provide when you are applying for a car title loan with your salvage car;
- Government-issued photo ID such as your passport or driver’s license.
- Your original prepaid inspection receipt.
- The title of the car carries the name of the current owner of the car. An assigned title that wants to transfer is not applicable in this case.
- Receipts of all parts that are not original to the car. the used parts must carry the Vehicle Identification Number of the donor vehicle. Also, if the parts are purchased, the receipts for such purchases must be notarized.
The major criteria to qualify for a car title loan with your salvage vehicle is to have the title of the car in your name and also be able to show proof that you can repay the loan to your lender.
The amount of money you can get depends on the evaluation of the car by your lender. You can get up to 50% of what your car is worth when you apply.
