Title loans have long been a lifesaver for anyone needing money. They offer quick approval and fast funding if you own a vehicle that’s paid off and registered in your name. But what happens if you apply for a title 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? Not only that, but 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; most lenders can offer loans $1,000 or more, even with a rebuilt or reconstructed car as collateral! These rebuilt title 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 title loan, you don’t need to worry about your credit score during the underwriting process. That’s because there’s equity in your vehicle, and there’s minimal focus on your credit history when applying for a salvage title loan.

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

Salvage title loans function like a typical title loan that uses a car with a clean and clear pink slip 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 title loan on a rebuilt or salvage title, that means your car or truck has been damaged in an accident or natural disaster. The insurer then labeled the title “salvaged,” as replacing the vehicle was likely less expensive than fixing it. Salvage titles are typically issued when the vehicle has been declared a total loss or when repair estimates amount to 7% or more of the vehicle’s resale value.

Some insurers allow vehicle owners to keep the vehicle after they’ve written off the loss. 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 a typical vehicle, they’re still worth money and can always be used as equity for a title loan. Is your salvage car, truck, or motorcycle worth at least $3,000? If so, you can qualify for a title loan in Tennessee and other southern states with lower loan amounts. For California title loans, your salvage vehicle must be worth $5,000 or more.

The Application Process – What Required For A Salvage Title Loan

To see how much you can borrow with a salvage title loan, apply online or over the phone at 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’s been done to fix it. Based on comparable sales, we’ll determine how much the car is worth and develop a quick estimate for your rebuilt title loan.

During the underwriting process, 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. Don’t worry about not being able to drive your car! All we need is your junk car’s pink slip, as the lender will be added as a lienholder, and you can keep the keys!

You must submit proof of income showing you make enough each month to repay any loan with the car as collateral. This can be done with payment 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 car title loans and car equity loans. That’s because lenders charge higher rates as they’re taking on more risk with a vehicle that’s been rebuilt. Expect an interest rate of 50% or more with any rebuilt title loan and some companies can assess a rate that exceeds 100% if you’re looking to borrow more than $5,000. Interest rates on junk or salvage vehicles are often higher because there’s far more risk for a lender. It can be difficult to accurately price a salvage vehicle and you’ll see that risk passed on to you in the form of higher interest rates and a quicker repayment term.

These loans typically come with lower funding amounts because your vehicle is worth less. All salvaged vehicles have a resale value far lower than comparable vehicles, which is reflected in the loan amount. Look for a loan amount that starts at $500 with a salvage title loan, and in some cases, you can borrow up to $5,000.

Salvage Title Loans – What Else To Know

All types of title loans are quickly approved, assuming the required documents are in order, including title loans on salvaged vehicles. However, it may take longer to underwrite a salvage vehicle as there are more things to underwrite, and you’ll likely need to bring the vehicle in for a full in-person inspection. We’ll need to confirm the car is salvaged and review the initial accident or loss to ensure no further damage could lower the vehicle’s value.

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

Be sure to only work with experienced companies dealing with rebuilt vehicles. Yes, many online companies claim to offer cash for salvage titles. Still, many of these services don’t know how difficult it is to come up with a realistic vehicle value on a rebuilt or “junk car,” and they may offer you far less than what the vehicle is appraised for. Look for lenders that advertise their ability to provide equity loans on a rebuilt vehicle!

Apply Today With Premier Title Loans Using A Rebuilt Title

Premier Title Loans works with all types of applicants, and it doesn’t matter if you have a brand new vehicle or a junk vehicle that’s been salvaged and sold to you by an insurance company. As long as it’s paid off, registered in your name, and valued at $3,000 or more, we can help you! Apply online or call us at 800-250-6279 for a quote in 30 minutes or less.

Jessica Chase

Jessica has been working in the title loan lending industry since 2012. Before that, she managed a team of customer service representatives for one of the largest payday loan companies in the US. Since coming to Premier Title Loans, she’s overseen our sales and marketing department and looks forward to educating consumers on their different financing options. Jessica is always open to feedback and questions related to short term loans!