Cars at a repair shop that will soon be salvaged.

Salvage Title Loans – How They Work & What’s Required

Title loans have long helped people who need money. They offer quick approval and fast funding if you own a paid-off, titled vehicle in your name. But what happens if you apply for a loan using a salvage or rebuilt title? Is a title loan even an option for you, and can you get approved in the same amount of time? Also, how much can you borrow, and what types of salvage vehicles qualify? At Premier Title Loans, we make the application process easy, and in this article, we’ll explain how these loans work and what you need to qualify.

Salvage title loans are real; some lenders offer loans of $1,000 or more, even with a rebuilt or reconstructed car as collateral. These loans are an effective way to cash out equity from your vehicle, and you won’t need perfect credit to be approved. Like a typical vehicle-secured loan, your credit score matters less during underwriting. That’s because your vehicle has equity, and lenders focus less on your credit history when you apply for a salvage title loan.

 

How Do Rebuilt Title Loans Work – What You Need to Know

Salvage title loans function like a typical loan, using a lien-free salvage or rebuilt title as collateral. The borrower uses their vehicle as collateral, and a lender offers a secured loan based on the vehicle’s value. If you’re looking for a loan on a rebuilt or salvage-titled car or truck, it means your vehicle has been damaged in an accident or natural disaster. The title was then branded “salvaged” because replacing the vehicle was likely less expensive than repairing it. Salvage titles are typically issued when a vehicle has been declared a total loss or when repair estimates exceed a state-set share of the vehicle’s value, often 75%.

Some insurers allow vehicle owners to keep the vehicle after the loss has been written off. You’ll eventually get a new title, and the pink slip will show the car as “salvaged” or “rebuilt.” While salvage vehicles often have much lower resale values than typical vehicles, they’re still worth money and can often be used as collateral. Is your salvage car, truck, or motorcycle worth at least $3,000? If so, you may qualify for a title loan in Tennessee and other southern states for a lower loan amount. For California title loans, your salvage vehicle should be worth at least $5,000 to qualify for a higher loan amount.

 

Some flooded cars that may eventually be used as collateral for a salvage title loan.

 

The Application Process – What Is Required For A Salvage Title Loan

To see how much you can borrow with a salvage title loan, apply online or call 800-250-6279 with Premier Title Loans. We need brief details about the vehicle, including its make, model, and VIN. Since the car has been salvaged, we may also need to know what damage it initially sustained and what repairs have been made. Based on comparable sales, we’ll determine the car’s value and provide a quick estimate.

During underwriting, you must submit proof that you own the vehicle. The car’s rebuilt title will eventually be signed over to the lender, who’ll keep it until the loan is fully repaid. All we need is the vehicle’s title. The lender will be added as a lienholder, and you can keep the keys.

You must submit proof of income. This can be done with pay stubs or bank statements to verify you have sufficient cash. You may also need to send proof of vehicle insurance and that your vehicle is properly registered. In some cases, we’ll need documents from your insurer to verify why your car’s title was salvaged and what happened during the accident.

 

How Does a Rebuilt or “Salvage” Title Loan Compare to a Typical Title Loan?

Salvage title loans often have a higher APR and shorter repayment terms than traditional loans secured by a vehicle. That’s because lenders charge higher rates as they’re taking on more risk with a vehicle that’s been rebuilt. Expect a higher interest rate on a rebuilt title loan. Interest rates on salvage vehicles are often higher because lenders face far greater risk. It can be difficult to price a salvage vehicle accurately, and you’ll see that risk passed on as higher interest rates and a shorter repayment term.

These loans typically have lower loan amounts because your vehicle is worth less. Salvaged vehicles usually have a resale value far lower than comparable vehicles, which is reflected in the loan amount. Look for a loan starting at $1,000 for a salvage-title loan; in some cases, you can borrow up to $5,000.

 

Cars at a repair shop that will soon be salvaged.

 

Salvage Title Loans – What Else To Know

Most vehicle-secured loans can be approved quickly, as long as the required documents are in order, including those for salvaged vehicles. However, underwriting a salvage vehicle may take longer because there are more factors to consider, and you’ll likely need to bring the vehicle in for a full in-person inspection. We’ll need to confirm that the car is salvaged and review the initial accident or loss to ensure that no further damage could reduce the vehicle’s value.

Anytime you apply with Premier Title Loans using a rebuilt car title, we’ll process your information quickly and offer you several lending options with multiple repayment terms. That way, you can compare these offers to those of other online lenders and decide what works best.

Be sure to work only with experienced, licensed lenders who specialize in rebuilt vehicles. Yes, many online companies claim to offer cash for salvage titles. Still, many of these services don’t understand how difficult it is to determine a realistic value for a rebuilt vehicle, and they may offer far less than the vehicle is appraised for. Look for lenders that advertise equity loans for rebuilt vehicles.

 

Apply Today With Premier Title Loans Using A Rebuilt Title

We work with all types of applicants, and it doesn’t matter if you have a brand new vehicle or salvage vehicle bought from an insurance auction. Get pre-approved online or call us at 800-250-6279 to get a quote.