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 — 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. 💥🚗
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.
This is why title loan lenders inspect your car before giving you a loan offer — they need to see what kind of condition your car is in so they know what it's actually worth.
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! 👋🙂