Can You Finance a Rebuilt Title Car?

When it comes to buying a car, there are different types of titles that you should be aware of. One such title is a rebuilt title, which indicates that the car was severely damaged in the past but has since been repaired and is now deemed roadworthy. However, financing a rebuilt title car can be a challenging process. In this article, we will explore the ins and outs of financing a rebuilt title car, including the pros and cons, major banks that finance rebuilt title vehicles, and alternative financing options.

What Is a Rebuilt Title?

A rebuilt title is given to a vehicle that has been declared a total loss by an insurance company due to severe damage. This damage could be the result of an accident, flood, or other incidents. After the vehicle has been repaired, it undergoes a thorough inspection by the state's Department of Motor Vehicles (DMV) or a similar agency. If the inspection determines that the car is safe and roadworthy, a rebuilt title is issued.

The Pros and Cons of Buying a Rebuilt Title Car

Before deciding whether to finance a rebuilt title car, it's important to consider the pros and cons associated with these vehicles. Some advantages of buying a rebuilt title car include:

• Lower Price: Rebuilt title cars are typically priced lower than their clean title counterparts due to the perceived risk associated with their history.
• Availability: Rebuilt title cars can provide access to vehicles that may be otherwise unaffordable for some buyers.

However, there are also some disadvantages to be aware of, such as:

• Unknown History: It can be difficult to determine the full extent of the damage the car has suffered and the quality of the repairs.
• Insurance Challenges: Insuring a rebuilt title car can be more expensive and harder to find coverage for.

Financing Options for Rebuilt Title Cars

While financing a rebuilt title car may be more challenging than financing a car with a clean title, there are still options available. Some major banks, such as Wells Fargo and Chase, offer financing for rebuilt title vehicles. Additionally, there are specialty banks and credit unions that specifically cater to financing branded and rebuilt titles. It's also worth considering personal lenders who specialize in financing salvage cars and trucks.

Dealerships may also offer financing options for rebuilt title cars, although the terms may be less favorable compared to traditional car loans. It's important to shop around and compare offers from different lenders to find the best financing option for your specific situation.

Alternative Financing Options

If traditional financing options are not available or don't meet your needs, there are alternative financing options to consider. One such option is LightStream, a lender that specializes in financing salvage or rebuilt vehicles. They offer competitive rates and flexible terms for borrowers with good credit.

Another alternative is to seek out private lenders or online lending platforms that cater to borrowers with unique financing needs. These lenders may be more willing to provide financing for rebuilt title cars, but it's important to carefully review the terms and interest rates before committing to a loan.

Conclusion

Financing a rebuilt title car is possible, but it may require more effort and research compared to financing a car with a clean title. It's important to weigh the pros and cons and carefully consider your financing options before making a decision. By understanding the process and exploring different lenders, you can find the right financing solution for your rebuilt title car.