Salvage titles refer to a specific category of cars delineated by the law. If a car has a salvage title attached to it, it means that it was involved in a catastrophe of some sort, like an accident, fire, flood or something on those lines which caused it to go out of the circulation for normal registration. These titles are actually quite common in natural disaster-stricken areas. States have separate rules regarding conversion of standard vehicles to salvage titles. The general rule is that if the expense of repairs on the vehicle crosses 75% of the actual cost of the vehicle, it is converted to a salvage title.
If you are looking to finance the purchase of a salvage title car, there are several ways you could go about it.
Several cheap salvage title car loans are available. The buyer must, however, have a good credit score and a sound history when it comes to repayment of past debts. Further, he would need to find a lender ready to finance the purchase of a salvage title car, considering that the car will be used as collateral for the loan. Ensure that you get a low-interest rate, or else the entire point of purchasing a salvage car is lost, as you would end up paying as much with your interest dues as you could have spent to buy a new or better car.
These are “quick-money” loans which allow consumers quick access to funds for emergencies. The vehicle would have to be put up as collateral, and the title to the vehicle will be kept by the loan agency till the entire loan is paid back by the purchaser. Title loans are usually set to fixed amounts around 50% of the evaluated value of the vehicle. Obviously, the loan holder would get to keep the vehicle during the loan period, but he just won’t own the vehicle till it is paid off in full.
Title loans follow a pretty straightforward process when it comes to regular vehicles, but a lot of lenders would be very stingy if they hear mention of salvage titles. If, however, you are able to find a lender ready to provide a ‘rebuilt title loan’ to finance your salvage title purchase, this is one of the methods with least hassle involved, and you should definitely go for it.
Places Where You Can Get Loans on Salvaged Vehicles
Title loans are quick-fixes and make the funds instantly available albeit at a high rate of interest. The quicker you can pay back the loan, the less money you have to spend. If you are short on funds at the moment but are sure you’ll be able to repay the loan soon, this could be absolutely perfect for you. Once the decision is made, finding a bank or agency to fund the loan should not be a difficult matter. You can read all about these at sites like http://idealautousa.com/.
How to Secure a Title Loan for a Salvaged Vehicle
Most salvage cars can be refurbished and repaired to be worth more than the amount loaned to the prospective buyer, so they are definitely worth the interest, ti“me, and money invested by the lender in them. The newer the car, the easier it would be for a prospective salvage title owner to find a title loan provider for the vehicle.
The requisites for a title loan are pretty straightforward; you would need positive ID, a clear title, updated coverage for insurance, proof of a steady income flow, and some personal references. Further requirements vary from company to company and state to state. It is vital, however, that the salvage title for the vehicle is properly insured in the contingency of damage or theft, because without that, the vehicle holds next to no resale value and no promise for the loan company as an acquired collateral in case you are unable to repay the loan.
About Author: Rodney Newell is a car salesman working with a dealership in California. He also runs a car blog where he talks about car care, car refurbishing, places to find great salvaged cars like http://idealautousa.com/ and much more.