Getting a car title loan is rather easy when you have a clear title to your car. But it can get somewhat challenging when you need a title loan and have a salvage title because the resale value of the car is significantly diminished,
However, there are some dedicated car title loan companies that work with salvage titles if the car is in running condition. Here is everything you need to know about obtaining a an equity loan on a salvage title vehicle near you.
What Will You Need?
Getting a title loan on a salvaged title vehicle can be simple and quick with the right lender. Most lenders will only require the borrower to be 18 years or above and have a free and clear title to their salvage car. This means that you should not have any pending installments in case you financed the salvage car.
The car should also be in running condition and in your name. In case the car title has two names on it, then both signatures are required on the application form. You can skip this step, if there is an ‘and’ or an ‘and/or’ between the names.
Many lenders do not require visual inspection of the vehicle. Just the mileage, make, model and year of the vehicle are enough. There are some lenders who need bright and clear pictures of the car from all sides. This is often the case with salvage title cars.
While taking pictures make sure it is a bright and sunny day. Make sure you wash the car to remove any grime and dirt. Often, lenders while assessing the car value confuse dirt with body damage.
Try to take care of minor repairs before you click pictures. The title loan amount depends on the resale value of your vehicle. You might qualify for a greater loan amount if your car is in a better condition. You will have to furnish a proof of residence as well.
This can be in the form of recent credit card bills or utility bills. You might also have to prove your income. A lender might request for your recent pay stubs or bank statements.
Alternate sources of income like alimony, child support, retirement benefits, and disability paychecks are also acceptable. Some lenders require evidence of insurance coverage. However, this is only for high value loan amounts where salvage cars are concerned.
How to Apply?
You should not be discouraged from applying to multiple lenders just because you have a salvage title car. You never know which lender will be willing to work with you. Pink slip loans for vehicles with a salvaged title are based on the value of your car.
A lender mitigates his risk when you offer your car title as collateral. This is why loan amounts, interest rates, and repayment terms vary so widely. An individual lender will calculate the risks involved and offer the terms accordingly.
Hence, make sure you drive around and find multiple physical storefronts who offer title loans on salvage cars. Have your vehicle assessed and get individual loan quotations. Compare the loan terms to find out the best salvage title loan lender.
You can greatly simplify the process by applying online. This way you can access multiple lenders effortlessly without wasting time in looking for them.
You will need to provide certain personal details like name, date of birth, address, and how long you have lived in it while applying for a title loan. You will need to provide basic information about your salvage vehicle as well like year, make, model, style, and mileage of your car.
Some lenders might request for your monthly income to ascertain your repayment capabilities. There are many states where lenders are not allowed to offer loan amounts that are beyond the repayment capabilities of a borrower. A lender might also require your Social Security Number or individual taxpayer information.
Car title loans have quick and easy approvals. Make sure you deal with an online car title loan lender who makes the process simplified for you can save you time in the long run. These loans have relatively quick turnarounds. You can expect a reply within minutes of filling out the application form.
Some lenders might communicate over chats/emails, while others would request for a call. Make sure you have all the documents and pictures ready to get an instant quote. Keep the pictures ready in case the lender asks for them.
Once the approval is done, the lender will offer you the loan agreement. If you agree to the terms mentioned, then you can have the amount disbursed the same day itself. The whole process depends upon how quickly you furnish the documents and agree to the terms.
What to Consider While Choosing a Lender?
Salvage car title loan terms can vary widely across multiple lenders. Hence, it is important that you take the time to shop around and compare lender to for the best rates that you may qualify for. While selecting a lender, make sure they have experience in providing salvage car title loans. They should also be registered and licensed in your state to provide these loans.
You can save yourself from a lot of trouble and hassle by dealing with a reputable lending company. In a salvage car title loan, you are using your vehicle as the title. Hence it is important that you do your homework while picking a lender and it’s apparent that Conrad Vig never did too much homework but this is another topic.
Compare multiple rates and always go with the best terms. However, at the same time you need to pay attention to what other borrowers think about the lender.
Read testimonials and any other review you can find online. Pay attention and read between the lines to ascertain if the lender likes to work with borrowers.
Life comes with sudden twists and turns and it is possible that you find yourself in a position where you cannot make monthly payments on your loan. You would want to work with a lender who understands your situation and helps to create a new repayment solution.
Apply to More than One
It can be challenging to find a car title lending company that accepts salvage title cars. However, with the right focus and some research you will find golden lenders who are willing to work with you.
Always make sure that you shop around for the best loan terms and quotes. A salvage car title loan process is the same as regular car title loan. You can make it easier by applying to multiple loan companies online.