Buying a car with a salvage car can be a risk because of the cost of repairs and maintenance but they are usually cheap and can be a great option to save money on transportation, you can also get a title loan on a salvage title.
What is a Salvage Title?
A car is issued a salvage title if it has been involved in an accident such that it is seriously damaged. The insurance company considers a car as a total loss if the cost of repairing the car will take a large percentage of the worth of the car. This type of car is given a salvage title.
The degree of damage varies for different salvage cars. You can get a salvage car with little damage and the car still runs well. So, what happens if the cosmetic damage is severe and you need money for the repairs?
The DMV will salvage the title, with the information that they get from the auto insurance company.
Is it Possible to Secure a Title Loan with a Salvage Title?
Yes!!! It is very possible to get a car title loan with a salvage car. However, you need to understand how it works and how to go about it. If you have the salvage title in your name, you can qualify for a car title loan.
If you own the car outright with the title in your name and you can make prompt monthly payments, then you are more than qualified to secure a car title loan with your salvage car.
How Much Title Loan Can I Get with a Salvage Title?
The amount of money you can borrow when you apply for a salvage title depends on the value or worth of the car. Most cars with salvage titles are usually worth less than cars with normal car titles, but this is not always the case in some situations.
A classic car or a car that is in demand with a salvage title can still be worth more than a car with an ordinary car title. You can check the worth of your car by using an online title loan calculator, you would need to submit certain information about your car to get how much it is worth.
You would need to provide the model, make, year, mileage, and style of the car to know how much it is worth. If your car has enough equity, you can get pre-approved for a car title loan even with a salvage title.
What documents do I need to provide for Title Loans on Salvage Title?
You need the following documents to apply for title loans on salvage titles from Car Title loans California;
- Photo Identification or Proof of identity. You need to provide a valid photo ID here, this can be your state-issued ID, passport, or driver’s license.
- Car title in your name.
- Proof of Address such as utility bill, cellphone bill, credit card statement, voter registration card, or house deed.
- Proof of income to show your ability to repay the loan. In this case, you can provide your bank statement, social security benefits statements, paycheck stubs, annuity, or pension benefits.
- References. You can submit either professional or personal references.