And just a note on
You gotta remember that (outside of the patriot act compliance) all the lender is doing is lending you money & using the title lien as collateral. So long as the value supports the lien amount (LTV), they don’t care.
If you were applying for a $5k loan on a $195k exotic, then you may have a few questions. But only a few.
The other part of this that is important is that in order to get them to rlease the funds (and cut a check to whomever), you must provide an insurance binder. You will be unable to insure a car that is defunct. So thinking you can get a $28k KBB loan on a toasted STi that has been scrapped won’t exactly work 
The fraud charges you’ll face won’t be fun.