Auto title loans are considered secured loans because you’re required to put up your car as collateral. The vehicle you’ll use should be lien-free and with a clean title. It will undergo an inspection to determine its value. Factors like mileage and maintenance will be in play here. But what if you plan on using a salvaged vehicle for your Car Equity Loan Saskatchewan? Can you secure a good loan?
Why You Shouldn’t Use a Salvaged Vehicle to Apply for an Car Equity Loan Saskatchewan
A car title loans company uses the value of the collateral to ensure its investment is covered. If a borrower defaults, the collateral will be pulled out and sold. It’s why many lenders are wary about accepting a salvaged vehicle as collateral. The term refers to a car that suffered extensive damage and was declared a loss by the insurance company. Even if the car is repaired and working, it will still be considered a salvaged vehicle.
This type of car has less value. While a lender might accept a salvaged vehicle as collateral, the loan amount will be significantly lower. The underwriting process is stricter and the lender will only offer half the amount of its value. Bear in mind it will be valued much lower than a car with a clean title.
Lowest Interest Rates in the Industry
Apply today at Canadian Equity Loans and say goodbye to your money troubles. We’re one of the country’s renowned lenders. We can provide you with up to $100,000 in loans. We offer low-interest rates and affordable monthly payments. You can also opt for early payouts without penalties. Sign up on our website or call our toll-free number at 1-844-586-6311.
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