A salvage title shows the car has been damaged so much that repair costs exceed the vehicle's fair market value. If you've ever seen a bargain on a car that appears too good to be true, it could be because it comes with a salvage title, meaning the vehicle will require significant repair costs.

In this article from Carolina Title Loans, Inc., we will explain what salvage titles are, whether you should buy a car with a salvage title, what you should do with a vehicle after getting this designation, and whether you can get a car title loan with a salvage title.

What Is A Salvage Title Car?

If a car sustains damage due to fire, floods, collisions, vandalism, hail, or theft, its repair cost may exceed its fair market value. This means it would cost more to fix the damage than you could get if you sold the vehicle on the market before the damage. In this case, an insurance company may deem the vehicle a total loss and place a salvage title designation.

If the vehicle is repairable, the insurance provider must request a salvage title before selling the car to a body shop or auction house. Upon selling it, the vehicle can be fixed, undergo a safety inspection, and put back on the road.

Before that, the repairer has to obtain a new title — a rebuilt salvage title, sometimes called a restored title, previously salvage title, rebuilt title, or reconstructed title. 

How Do Salvage Titles Work?

After your car receives enough damage to be given a salvage title designation, the insurance company may take ownership of the vehicle. When they do this, they normally put the damaged vehicle up for auction, where auto shops and mechanics will normally buy the damaged vehicles for their parts. Drivers can also buy and repair these vehicles to remove the salvage title designation.

The original owners of the damaged cars may also keep and repair them so they can continue driving them. While the repair costs are high, drivers may be willing to pay the price for a vehicle that has sentimental or personal value.

What Is The Process For Getting A Salvage Title?

Salvage titles are obtained through the DMV, but the process varies from state to state. It typically involves completing an application, paying the necessary fees, and submitting your vehicle for a salvage examination. The latter evaluates the extent of the damage and the vehicle's condition. 

Salvage inspections aren't the same as standard safety or emissions inspections. Instead, it normally includes:

• Verifying the VIN
• Checking the odometer reading
• Comparing its current condition to what's stated on the application
• Verifying that parts have been removed, destroyed, tampered with, or defaced beyond the reported damage

When getting your vehicle a salvage inspection, you will need to bring a salvage title application, a receipt showing you paid the fee, a copy of the insurer’s damage report, and a bill of sale for the repair costs or parts you bought.

Should You Buy A Car With A Salvage Title?

When shopping for a low-priced used car, you may consider purchasing a car with a salvage or rebuilt title. However, a few things to consider before making your final decision.

Buying a car with a salvaged title may make sense if the car did not suffer structural or mechanical damage. If you love the car and have the means to afford repairs, it could be a worthwhile investment, as long as you have a complete service history and know a mechanic who can repair the damage.

However, buying a salvage title car carries a significant risk. You may not know the full extent of the damage and buy a damaged vehicle beyond repair. You could pump tons of money into repairs and still not have a functional vehicle. Even if you can repair the car so it’s functional again, there’s no telling how long it will last based on the significant damage it has already sustained.

Can You Get A Title Loan With A Salvage Title?

It’s possible for you to get a car title loan with a salvage title, depending on the loan lender. Some may not allow salvage titles, while others may as long as you meet additional requirements like proof of income.

You can reach out to loan lenders to see if they allow borrowers to use a salvage title for a car title loan. At Carolina Title Loans, Inc., we allow borrowers to receive from $601 to $15,000 for their car title loans.

All you need to get approved are the following three required items:

• A driver’s license or other state-issued identification
• Your lien-free car title in your name
• Your vehicle for an inspection

We use the value of your car to determine your loan amount, so a car with a salvage title may get approved for less emergency money than others. However, you can still reach out to try to get approved for a car title loan to help pay for emergency expenses.

Get A Title Loan From Carolina Title Loans, Inc. Today!

Salvage titles are given to vehicles whose repair costs exceed their fair market value. As long as you own your vehicle outright, you still might be able to get a car title loan in South Carolina with a salvage title.

Carolina Title Loans, Inc. is here to help. You can begin the process online with our quick cash form. One of our friendly loan representatives will then reach out over the phone to guide you through the process of receiving emergency cash for your urgent expenses.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.