Can you get a title loan on a salvage title?

Quick Answer Generally, it's difficult to get a title loan on a salvage title. Salvage titles indicate that the vehicle has been seriously damaged. While some lenders may consider it, many prefer titles without salvage branding due to the increased risk associated with salvage vehicles.

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Jack Woerner Answer updated on May 28, 2023

Fact checked by Dwayne Dumesle

Though it's not impossible, it is extremely difficult to get a title loan on a salvage title vehicle.

Like most car title loans, salvage title loans are generally short-term, high-interest loans that use the salvage title (a totaled car😥) as collateral.

It may be difficult to find a lender that will offer a title loan based on the value of your salvage title. This is because the lender is taking on a big risk — let me explain.

Learn: Where can I get a title loan?

When there has been a bad accident and a car is severely damaged, the insurance company will give the vehicle a salvage title. This means that they deem the vehicle as "totaled" and it may not be safe to drive on public roads.[1]

If a title loan lender decides to use the car as collateral, it may be difficult for the lender to sell the salvage title vehicle to recoup their loss if you fail to repay the loan.

You see, salvage titles can fluctuate in value since they become subjective in that status.[2] You know, another man's trash is another man's treasure. Or something like that. 🙃

Learn: Can you get a title loan with a damaged car?

If you have a salvage title and are looking for a title loan, it’s important to do your research and find a lender who is willing to work with you. Be prepared to provide additional documentation to secure the loan. The lender may have other loan requirements in order to protect themselves from risk.

If you can't find a lender willing to offer you a title loan on your salvage title, you may want to explore other personal loans for bad credit.

With any title loan, be sure to do your homework and shop around for the best terms.

  1. What Is a Car Salvage Title? ↩︎

  2. Frequently Asked Questions ↩︎

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