A title loan on a salvaged title vehicle is a type of loan that offers quick money to consumers that need money fast during emergency financial situations. Many lenders will not provide a loan on a salvaged title vehicle, so its important to find a lender who will. Check out our list of best online title loan lenders, and the ones that finance salvage titles are listed there in the notes.
They often have high interest rates and a short loan term. With a title loan, a vehicle is used for collateral. The title loan company itself will keep this title until the loan is paid back in full. Typically a title loan is determined by about 60% of the appraised value of the vehicle used as collateral. The loan holder will retain the use of the vehicle while paying off the loan. It is required that current auto insurance is held on the vehicle while it is being driven so that the title loan company will have protection from loss in event of theft, fire or an accident.
Even a salvaged vehicle can be used to obtain a title loan in many cases - it really just does depend on the lender you decide to go with for your auto title loan. A salvaged vehicle is when where there is more damage inflicted than the car is worth. Sometimes these types of vehicles can be repaired to be worth than the title loan itself so the title loan company will take a chance on this type of loan. A salvage title is applied to a car title that has something catastrophic occurred to it. Many times these types of titles occur when vehicles were hit by flooding or fire. Many states have different types of requirements that convert a car's title to a salvage one. This typically occurs when the expense to repair the vehicle is more than 75% of the car's worth (this number varies by state). Many of these vehicles can be repaired to work well and be worth much more than the loan amount given to a loan applicant with this type of vehicle. This is why many title loan companies will accept vehicles with salvage titles.
In order to get a title loan with a salvage car title, the applicant must have great credit and a proven history of paying payments on time to creditors. They will need to find a title loan company that is willing to finance a salvage title; if the car is newer in age then this will be easier.
To get a title loan, bring a government-issued ID, updated insurance coverage and registration, the title, proof of income and sometimes personal references to a title loan company directly. Requirements for a title loan will depend on the particular company used and the state one resides in. It's important to understand that proper insurance is required on all vehicles used with title loans. Without this the vehicle will hold no value in case of theft or an accident and the title loan company will lose money if the loan isn't paid in full, thus they won't approve a title loan in a situation like this.
If you have found yourself in a financial bind, either because you are late on payments, have to pay for a medical emergency, or simply need to make ends meets, you might be wondering what kinds of loans can get you the money you need as soon as you need it.
While many traditional personal loans can take days or even weeks to finally get approved, one kind of loan that can get you the money you need within hours is an auto title loan. So, what is an auto title loan and how do you apply for one?
To make it as simple as possible, an auto title loan is a type of collateral or secured loan in which you trade in the lien-free title on a car that you own in full in order to take out a loan a based on the value of that car. Because the loan is based off the value of your car, you do not have to worry about not being able to qualify due to poor credit. In fact, most lenders do not even check your credit score when they are evaluating your application. A salvaged title is where there is an issue with the title, its usually has the word 'salaved' stamped on the title. This could be due to damage, or a high level or repairs from the vehicle due to major accident.
While the minimum that your car has to be worth in order to qualify for an auto title loan is $2500, your car can be worth much more than that. The more your car is worth, the more your loan will be worth. Typically, a loan offered is anywhere between 30 percent and 50 percent of the total value of your car.
Once you take out a auto title loan, you will want to start saving to pay it back as soon as possible. Auto title loan payment terms are typically quite short and it is common for you to be expected to pay back your loan in full plus interest within 30 days. If you are unable to do so, you risk either having to roll-over your loan and taking on additional interest fees, or having your car repossessed by your lender. It is not all that rare that those who borrow auto title loans end up getting their car repossessed, in fact it's about 1 in 5.
If you are confident that you will be able to pay off your auto title loan, you may be wondering how you can apply. It's actually incredibly easy.
Simply hop on your computer and search for auto title lenders in your state and area. You will most likely find a list of lenders who either operate entirely online, or who operate through in-store locations. The choice is yours to make. While online lenders are typically easier - as you can undergo the whole process without ever leaving your home, in-store lenders are usually able to get you your money faster. Regardless of what you choose, you will need these documents.
If your car meets the necessary criteria and you are able to provide the documents necessary, you should have no problem obtaining a car title loan.
Read more about title loans. Alternatively you can browse our list of best online title loans. Where many different lenders are listed so you can search for one in your area and apply easily online.
Read more here about Title Loans In Arizona