How can you get a loan for a salvage title car?

I’ve never owned a car, but I’ve been thinking of purchasing my first one before winter. My friend owns a small used car dealership, and he found a vehicle I’m very interested in. The only problem is that it has a salvage title, and he said getting a loan could be hard. How can you get a loan for a salvage car?

Answer
Purchasing your first car is exciting, even if it’s a project car or a salvage title. While getting a car loan for a salvage title car can be difficult, it’s certainly within the realm of possibility.
Cars with a salvage title have previously suffered extensive damage. They are considered high-risk investments due to potential mechanical problems. Therefore, some lenders may not offer loans. If you’re willing to accept the risk, you may be eligible for a car loan through:
  • Local banks
  • Credit unions
  • Online lenders
  • Specialized car loan lenders
When applying, have the following with you:
  • Driver’s license and proof of residence
  • Proof of income and employment
  • Information about the vehicle, including a list of repairs done or a mechanic’s report if possible
  • Proof of insurance
Insuring a car with a salvage title is also challenging. Some car insurance companies will not offer a policy due to the risk. Others may not provide the full coverage you need on a financed car, instead opting for liability only.
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Jack Walsh
Answered on Nov 29, 2021
Jack is an insurance specialist and writer living in Buffalo, New York. He has a BA from Union College and worked as an insurance agent with Jerry before joining our content team. He enjoys using data and research to break down complex subjects and convey a story. In his spare time, Jack enjoys cycling, cooking, and exploring Buffalo’s beautiful waterfront.
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