Can You Finance a Salvage Title Car

Can You Finance a Salvage Title Car

When it comes to financing a vehicle, the type of title it holds can significantly impact your options.

A salvage title car, which is a vehicle that has been deemed a total loss by an insurance company due to extensive damage or safety concerns (And has yet to be repaired), can be particularly challenging to finance.

However, once the car has been rebuilt, it is possible.

This article will explore the possibilities and challenges of financing a salvage title car and some alternatives.

Can You Finance a Car with a Salvage Title?

Yes, it is possible to finance a car with a salvage title; however, it isn’t easy and is often more expensive than your standard auto loan.

Can Dealers Sell Salvage Title Cars?

Yes, dealers can and do sell salvage title cars, but not many. Most dealers will either wait to buy the cars once they have been rebuilt/repaired, or they will repair them themselves and have the title switched to “Rebuilt” before they put it up for sale.

Do Dealerships Take Salvage Title Car Trade-Ins?

Again, the answer to this is yes, there are some dealerships that will take a salvage title car on trade, but these will only be your small privately owned dealerships around town. Additionally, you will not fetch much value trading a salvage car at all and are probably better off selling it.

See Also: Can stolen cars have a salvage title?

Traditional Auto Loans and Salvage Title Cars

Traditional auto loans are typically people’s first option when financing a vehicle.

However, very few lenders will issue an auto loan for a salvage title or rebuilt title car.

This is primarily due to the risk associated with these vehicles. Since the car serves as collateral for the loan, a salvage title vehicle, which has a significantly reduced value, presents a higher risk to the lender.

Therefore, it’s unlikely that a traditional bank will offer a loan for a salvaged car, and if they do, the interest rate will be well above prime.

Cash Financing

One of the simplest ways to finance a salvage title car is to pay in cash. This method eliminates the need to find a willing lender and allows you to bypass the challenges associated with securing a loan for a high-risk vehicle.

However, this option requires you to have the full amount readily available, which may not be feasible for everyone.

Personal Loans

Another alternative is to secure a personal loan. Unlike auto loans, personal loans are unsecured, meaning they don’t require collateral.

This can be a viable option for financing a salvage title car as the vehicle’s title status is irrelevant to the loan approval process.

However, it’s important to note that personal loans typically come with higher interest rates than secured auto loans.

Dealer Financing

Some dealerships may offer financing options for salvage title cars.

These dealerships often have relationships with lenders who are willing to finance high-risk vehicles. However, the interest rates and terms may not be as favorable as those for cars with clean titles.

Title Loans

Companies like Rapid Auto Loans offer car title loans. However, these loans often require a free and clear title that is not a salvage or rebuilt title.

Title loans are generally expensive and come with high-interest rates, making them a less desirable option for many people.

Financing a Rebuilt Title Car

If a salvage title car has been repaired and inspected, it may receive a rebuilt title.

Financing a rebuilt title car can be easier than financing a salvage title car, but it can still be more expensive than financing a car with a clean title.

Some lenders, such as smaller banks, credit unions, and online lenders, may be more willing to finance a rebuilt title car than a salvage title car.

List of Lenders Offering Salvage Title Loans:

  1. Hyperlend: This lender accepts salvage car titles as collateral. You can find them and apply online​1​.
  2. Title Pawn Online: They offer salvage title loans with fast same-day funding. Title loan amounts can range from $500 – $20,000, and they promise to get you cash within 24 hours or less after approval. You can apply online for a loan with them​​.
  3. Advance America: They offer title loans and have physical locations in some states where you can apply for a title loan in-store and receive a decision quickly. Their website does not explicitly mention salvage title loans, so you may need to contact them directly to confirm if they accept salvage titles​​.
  4. TitleMax: As one of the nation’s largest car title lending companies, TitleMax has streamlined the car title loan process to be as fast and simple as possible. They promise to put money in your pocket in as little as 30 minutes. However, their website also does not explicitly mention salvage title loans, so it would be best to reach out to them for confirmation​​.
  5. ChoiceCash: They offer loans for both salvage and rebuilt titles. They have an online application process, and they mention that you can get quick funding as soon as the next business day if you’re eligible​​.
  6. Westlake Financial: Westlake Financial is a subprime lender that specializes in providing loans to people with poor credit. They offer financing for both new and used cars, including salvage title cars.

Credit Unions

Credit unions may be more willing to finance a salvage title car than traditional banks, but nothing is guaranteed. Here are some credit unions that may offer financing for salvage title cars:

  • Consumers Credit Union: Consumers Credit Union is one credit union that may offer financing for salvage title cars.
  • Navy Federal Credit Union: Navy Federal Credit Union may offer financing for salvage title cars.
  • Local credit unions: Local credit unions may also be willing to provide financing for salvage title cars.

*Each of the lenders mentioned above may have specific requirements for approval, so you’ll need to contact them directly or check their websites for more detailed information.

Please note that this list is not exhaustive, and the availability of these loans can vary by location. Always remember to fully understand the terms and conditions of any loan before signing.

Risks of Financing a Salvage Title Car

While financing a salvage title car is possible, it’s important to understand the risks involved. These include the potential for extensive damage or safety concerns, the risk of fraud, limited insurance coverage, and the difficulty of qualifying for financing.

Additionally, salvage title cars are not considered roadworthy until they have been repaired and inspected, which can add to the overall cost.

Buying a Salvage Title Car

If you’re considering purchasing a salvage title car, there are a variety of places where you can find these vehicles. These include:

  • Local Auctions: These often have a selection of salvage title cars for sale.
  • Online Platforms: Websites that provide nationwide searches can be a good source for finding salvage title cars.
  • Rebuilt Car Dealerships: Some dealerships specialize in selling rebuilt title cars and may also offer salvage title cars for sale.
  • Private Sellers: Individuals may also offer salvage title cars for sale, but caution is advised when buying from a private seller.

However, taking precautions is crucial when buying a salvage title car. Always get a vehicle history report, have the car inspected by a mechanic, get a second opinion, be cautious of fraud, consider insurance coverage, and understand the financing implications.

Also, be sure to make sure it is legal for someone to sell a salvage title car in your state. Some states require the car to be rebuilt before it can be legally sold.


  • Are salvage title cars cheaper?

    Yes, salvage title cars are cheaper than cars with clean titles because they have been deemed a total loss by an insurance company.

  • Can you get a warranty on a salvage title car?

    No, once a car’s title has been marked salvage, it has been deemed a total loss, which voids the manufacturer’s warranty. However, you are able to get certain extended warranties in certain circumstances, such as when you have repaired the car and had the title changed to rebuilt.

  • Can a salvage title be transferred?

    In some states (Like Florida) you cannot sell or transfer ownership of a car until it has been rebuilt. Check with your state DMV and your insurance company for the proper procedure.

  • Is it hard to get a salvage title registered?

    Yes, it is hard because, in many states, you cannot legally register a vehicle until the state has inspected the car and validated that the repairs were completed properly.


In conclusion, while financing a salvage title car can be challenging, it’s not impossible. You can navigate the process successfully by exploring different financing options and taking the necessary precautions. However, weighing the potential benefits against the risks and challenges is essential.

You might also be interested in reading:



Steve is a former licensed car dealer located in the State of Florida.  He has many years of experience buying, selling, and working on cars mechanically and started Autohitch to help buyers and Sellers navigate the complex lands of Car Buying.