Can you get a title loan with a damaged car?

Quick Answer Yes, you can get a title loan with a damaged car. Unlike traditional loans, title loans are based on the value of your vehicle rather than its condition. As long as your vehicle has enough value, you may be able to get a title loan even if it has damage or mechanical issues.

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Kevin Johnson ā€¢ Answer updated on Jun 26, 2023

Fact checked by Dwayne Dumesle

Yes, even if your car is damaged, you can still get a title loan with it!

That's because title loan offers are based on how much your vehicle is worth ā€” not just its condition. In fact, you may even be able to get a title loan if you have a salvage title for a car that you decided to keep after it was totaled in an accident. šŸ’„šŸš—

Learn: Where can I get a title loan?

You're not guaranteed to get a loan with a damaged car, though. A car that isn't worth much of anything because of how damaged it is won't qualify for a loan.

Of course, damage or mechanical issues are going to significantly affect how much your car is worth. A car that has major damage from an accident or serious mechanical problems will be worth a lot less than a car in excellent condition.[1]

This is why title loan lenders inspect your car before giving you a loan offer ā€” they need to see what kind of condition your car is in so they know what it's actually worth.

Learn: Can you get a title loan on a broken car?

Car title loans usually let you borrow between 25% and 50% of your vehicle's value, with loan amounts often starting as low as $100.[2]

Let's say your car is still worth $400 after an accident:

  • 25% - 50% of $400 is $100-$200
  • This means you could still use your damaged car to get a small loan from a title loan lender
  • However, some lenders have higher minimum lending requirements. If the lender in this example had a minimum loan requirement of $250, they would use your car's low value as a reason to not give you a title loan

In most cases, you'll still be able to get a loan with your damaged car, but it will depend on the lender. If you can't find a lender that's willing to give you a loan for your damaged car, it's worth your while to try another loan for bad credit: online installment loans.

Good luck out there! šŸ‘‹šŸ™‚

  1. Understanding Diminished Value Claims After A Car Accident ā†©ļøŽ

  2. What To Know About Payday and Car Title Loans ā†©ļøŽ

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