Table of Contents
- What is a Salvage Title?
- Pros if a Car is Salvage
- Cons if a Car is Salvage
- How to Get a Salvage Title Cleared if My Car is Salvage?
- Salvage titles on motorcycles
- Licensing, insurance, and financing considerations
- How Do I Qualify for a Title Loan if My Car is Salvage?
- How Much Could I Get with a Title Loan if My Car is Salvage?
- If I Have a Reconstructed Car, Can I Enjoy Title Loan Benefits?
- What Documents Do I Need to Get a Title Loan if My Car is Salvage?
- Now That I Have My Funds…
- How Do I Start the Process for a Title Loan if My Car is Salvage?
What is a Salvage Title?
Numerous car accidents occur each year, some minor and some catastrophic. If a car was involved in an accident and was profoundly damaged, it was most likely towed away from the wreckage site.
If a car was involved in an accident and has suffered significant damage, the damage likely exceeded a high percentage of the value of the car. When this happens, insurance companies may deem the car a total loss and give the car a salvage title indicating the car is not worth repairing.
A salvage car can also be a vehicle that was “created” from the parts of other cars. A car that has been created from various other car parts or a car that has been deemed a salvage vehicle is branded, in a sense, with the title of a salvage vehicle.
Pros if a Car is Salvage
The major pro to having a salvage car is that their price is most often extremely affordable. Since it is universal knowledge that salvage vehicles have a low equity, you can usually pick one up for a modest price. You can probably buy a salvage car and pay for it in full, eliminating the car payments that usually come when acquiring another vehicle.
Purchasing a salvage car might be a perfect option for you if you are on a tight budget and you are not traveling far distances every day. A salvage car would be better suited as a backup car used for short trips around the neighborhood rather than lengthy daily commutes.
Cons if a Car is Salvage
One of the most problematic challenges with owning a salvage vehicle is trying to find insurance coverage for this kind of vehicle. Many insurance agencies can see a salvage car as a
liability and opt out of insuring them because of the risk.
While a car may have a salvage title, it is not completely worthless. In the right hands, a heavily damaged car could be repaired and made drivable once more. But car repairs are expensive, especially for salvage cars.
A title loan is a great way to obtain emergency money for car repairs. If you own or have bought a salvage car, you may ask “Can I get a title loan if my car is salvage?”
It is entirely possible that you could qualify for a title loan if your car is salvage!1 Learn more about the requirements for a title loan and the process below.
How to Get a Salvage Title Cleared if My Car is Salvage?
Once you have repaired the vehicle to the point where you want to insure it and drive it again, you need to have it inspected. Anyone with the right documentation can bring the vehicle in to have it inspected, not just the owner. The State Patrol will then verify the ownership of all parts and review documentation.
Here’s what you need:
- The original prepaid inspection receipt
- State issued photo ID or passport (or a driver’s license if you’re driving the vehicle)
- Title with the current vehicle owner’s name on the front (not an assigned title that has yet to be transferred)
- Original receipts for all parts that are not original to the vehicle (used parts must include the donor vehicle’s Vehicle Identification Number). If the parts were purchased from anywhere but an authorized parts dealer, the receipts must also be notarized
If the vehicle doesn’t pass inspection, you will be told what needs to be fixed. You can then use the same inspection receipt for that vehicle for a future inspection. You won’t have to purchase a new one, but you cannot use that receipt for any other vehicle.
If your vehicle is drivable and passes inspection, you can then take your report to have your new non-salvage title issued. This is also called “clearing a salvage title.” Most states will require that all future titles for the car indicate that it has a salvage history, however. Depending on the state, this may be indicated by “previously salvaged” or “previous damage.”
Salvage titles on motorcycles
Motorcycle damage is common. And once a motorcycle become salvage, they begin to lose their value quickly. If you have the title for a motorcycle that’s considered a total loss, you can use the same process to restore the title as you would for a car.
Licensing, insurance, and financing considerations
Once you’ve gone through the hard work of repairing a car or motorcycle, getting it inspected and changed from a salvage title to a clear title is the easy part. You can expect to pay fees along each step of the way, and you should also make time in your schedule for visits to the BMV and the State Patrol Office, the latter of which requires an appointment.
How Do I Qualify for a Title Loan if My Car is Salvage?
Title loans are one of the most popular loan options for individuals that have a car title in their name. If you have a salvage title in your name, you could potentially qualify for a title loan!1
The two main factors for title loan eligibility include the car title and the ability to make timely monthly payments. Even if you possess a salvage title, you may have a good chance of obtaining fast financial support if you also have a consistent source of income!1
Classic cars and luxury car brands remain high commodities despite damage due to demand. If your car is salvage, you could potentially still be eligible to get a few thousand dollars if it’s a popular make and model!
How Much Could I Get with a Title Loan if My Car is Salvage?
The amount of emergency cash you could get through a title loan with a salvage title depends almost entirely on the value of the vehicle. Vehicles with a salvage title are typically worth less than those with an ordinary car title, but this is not always the case.
A luxury car or an in-demand classic car with a salvage title may still be worth more than the average consumer vehicle. But how can you check?
By using an online title loan calculator, you could check to see how much you may potentially receive with a car title loan!
You will be asked to provide the following six pieces of information:
- Vehicle Year
- Residential State
If your car has enough value, you could receive a free title loan estimate with no obligation!1 See how much you could get with a salvage car when you inquire about a title loan!
Once in contact with a loan agent, inform them that your car is salvage. Pictures of the car will be requested to further determine the value of the car. You may still qualify for a title loan, but you may receive less money than you would with a car in better condition.1
If I Have a Reconstructed Car, Can I Enjoy Title Loan Benefits?
Title loans offer plenty of desirable benefits for borrowers, and you could make use of them if you qualify! Take a look at some of the benefits you could take advantage of:
Get Competitive Rates
Interest rates vary with title loans, but you could receive competitive rates! Your rates should not make repayment harder, which is why they are based on up to date market analysis.
Superior Customer Service
Customer service should always be compassionate, convenient, and ideal. Title loans offer borrowers exceptional customer service that is unmatched.
Fast Title Loan Money
The title loan process is designed to offer fast financial relief. When you use your reconstructed car to get a title loan, you could potentially get the emergency money you need the same day!1 3 There’s no need for you to wait unnecessarily!
What Documents Do I Need to Get a Title Loan if My Car is Salvage?
If your car is salvage, you could still be eligible for a title loan if your car still has enough value.1 However, you will need to have a few documents ready to present to a loan agent.
In order to successfully complete the title loan process, you will need to provide these documents:
- Salvage Car Title: If your car is salvage, you must present the car title in your name. If the title is someone else’s name, you must transfer the car title at the DMV. A loan agent could help guide you through this process.
- Photos of the Car: If your car is salvage, you must take clear pictures from every angle so a loan agent can better determine the value of your car.
- Proof of Income: You can choose to provide bank statements, tax returns, paycheck stubs, etc.
- Proof of Residence: You must show proof of residence through a lease agreement, credit card statements, utility bills, etc.
- References: You will be asked to provide references, either personal or professional so a title loan agent can better assess your character.
When you inquire to get a title loan online, you could conveniently upload your documents online. You can choose to either send in images you took with a smartphone or scan the paperwork and email the files to a loan agent.
During the title loan process, you will be asked to complete a vehicle inspection. But when it comes to online title loans, you can avoid the in-person inspection and just do it online! Using your smartphone, you can take pictures of your salvage car from every side to display the current condition. Using the details you provided through the title loan calculator and comparing the photos, a title loan agent can better assess how much money you can possibly receive using your salvage title.
Now That I Have My Funds…
…you are free to utilize your car title loan funding in any manner you see fit.
Here’s what several customers use their funding for:
- Paying Bills
- Credit Cards
- Medical/Funeral Expenses
- …and many, many more!
How Do I Start the Process for a Title Loan if My Car is Salvage?
Title loans are a wonderful financing option for individuals whose car is salvage. If you need emergency money to schedule repairs or take care of other expenses, a title loan may be a perfect option!
Step 1: Inquire for a Title Loan with a Reconstructed Car
Step 2: Uploading Documents for a Title Loan
To proceed with the title loan process, your information must be verified by a loan agent. These documents can be easily uploaded online for convenience and speed.
Sometimes, your title loan agent will request some additional documentation from you in order to clarify some of your information. Also, don’t freak out if you cannot find the title to your vehicle, or if your name is not the only one listed on your vehicle title.
Step 3: Getting Your Title Loan Money with a Reconstructed Car
Once a loan agent receives your documents, your information will be verified and confirmed. The loan agent will go over the repayment terms with you and ask you to sign an agreement. Ensure that you clearly understand the expectations set on you as a borrower.
You can choose to receive your money in one of several ways:
- Electronic deposit
“Can I get a title loan if my car is salvage?” You could with a title loan!1 Start the title loan process today and you could potentially receive financial support in as little as 24 hours!3