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If you’ve already financed a vehicle in the state of California and have an outstanding balance on the loan, but still need additional financing for other reasons, a title loan may be your best option. This is a common question many people find themselves asking who have already borrowed money to purchase vehicle. While there are steps you will need to take, it is still possible to earn a title loan on a salvage loan.
Reading time: 3 min 55 sec
- What are the Factors to Get Approved for a Title Loan?
- What is a Salvage Title?
- Can You Get a Title Loan on a Salvage Title?
- Increase Your Chances of Getting a Title Loan on a Salvage-Title Vehicle
- What to look for in a Lender When Applying for a Title Loan?
- Partner with Montana Capital Car Title Loans for a Title Loan on a Salvage Loan
What are the Factors to Get Approved for a Title Loan?
A few major factors affect your chances of receiving financing through a title loan when you have an existing lien on your vehicle. Firstly, your credit history will be used to determine your eligibility for financing and is one of the strongest factors that affect your odds of getting a title loan.
Other factors that relate to your credit history include additional debts and obligations to creditors such as a mortgage or other liens that were placed during under other circumstances.
What is a Salvage Title?
A salvage title is a designation that is given to vehicles that have suffered some measure of significant damage. The damage would have to be bad enough for the insurance company to declare it as a total loss. In these cases the car is usually sold off for repairs and cannot be sold back to customers in most states until it has passed a safety test to determine whether it’s drivable.
Here’s what kind of damage will qualify a vehicle for salvage title designation:
- The vehicle is 75-90% damaged.
- The insurance company has deemed it as a complete loss.
- It suffered from flood damage, vandalism, or anything that makes the vehicle un-repairable.
People can end up with a salvage title vehicle for a variety of reasons. Whatever the reason however, having a salvage title carries certain implications when applying for a title loan.
Can You Get a Title Loan on a Salvage Title?
If your vehicle has a salvage title, you can still get a title loan in some cases, but it will be more difficult and the requirements are more stringent than if you were seeking financing on a car with a clean title. Here are the most important implications that will affect you when seeking financing on a salvage title vehicle.
Insurance and Financing Complications
When vehicle has a salvage title, getting it insured can be problematic, as the vehicle will be seen by most insurers to be not worth the risk. These complications can affect your chances of getting a car title loan as creditors appreciate insurance as a means of protecting their investments.
Title loans in particular tend to have fewer restrictions, and although it can still be difficult to be approved, they’re probably your best bet. In fact, when you need cash fast and you have a vehicle with a salvage title, a title loan may be one of your only options because selling the vehicle will also be extremely difficult.
When people have a car of appropriate value and in relatively good condition, they can sell it instead of seeking financing. However, with salvage titles this is much more difficult, making title loans one of the best ways to free up some money.
Removing the Salve Title Designation
If you pay to have the vehicle extensively repaired, you can go to the DMV to have it tested for safety and see if they can alter the title designation. They can work with you, but even if they remove the salvage title branding, it will be replaced by something like, ‘rebuilt’ or ‘assembled’. This can be just as damaging as any creditor will know those terms mean it had a salvage title at some time.
Increase Your Chances of Getting a Title Loan on a Salvage-Title Vehicle
You can raise your chances of getting a title loan significantly when you furnish as much documentation as possible. Provide the lender with a complete documentation of the damage done to the vehicle paired with your receipts for repairs.
Showing them the receipts for repairs is especially important and will help make lenders feel more comfortable taking on the risk of issuing financing on a salvage-title vehicle.
What to look for in a Lender When Applying for a Title Loan?
As a borrower, you should do your homework to find the best lender to work with when applying for a title loan. One of the most important things to look out for are predatory creditors who will readily approve you for the loan and then start making uncomfortable adjustments to your monthly payments, such as spontaneously raising the minimum payment when you least expect it.
Only predatory lenders will do this and the state of California offers methods of recourse in these situations. However, this can all be avoided when you choose the right creditor to partner with. Lenders like Montana Capital Car Title Loans are the smart choice for people looking for a pleasant title loan experience. They look out for their customers and never put them in a situation that they can’t handle.
Partner with Montana Capital Car Title Loans for a Title Loan on a Salvage Loan
While Montana Capital Car Title Loans cannot guarantee everyone financing when asking for a title loan and carrying the burden of an existing lien, they do everything possible for their customers. Can you get a title loan on a salvage title vehicle? The short answer is yes you can, as long as you meet our company’s guidelines and credit criteria. If so, premier lenders like Montana Capital Car Title Loans can work with you.
Talk with Montana Capital Car Title Loans today, their friendly staff will accommodate you and see that you receive the best service possible.