Financing a Rebuilt Title Car: What You Need to Know

If you are considering purchasing a rebuilt title car, you may be wondering how to finance it. Financing a rebuilt title car can be a bit more challenging than financing a traditional car, but it is not impossible. In this article, we will explore the options available for financing a rebuilt title car and provide you with valuable insights to make an informed decision.

Understanding Rebuilt Title Cars

Before diving into the financing options, let's first understand what a rebuilt title car is. A rebuilt title car is a vehicle that was previously declared a total loss due to damage, but has been repaired and passed a state inspection to deem it roadworthy again. These vehicles are typically sold at a lower price compared to their clean title counterparts.

Financing Options for Rebuilt Title Cars

When it comes to financing a rebuilt title car, there are several options you can explore:

1. Major Banks and Credit Unions

Some major banks and credit unions offer financing options for rebuilt title cars. Institutions like Wells Fargo and Chase may be willing to finance these vehicles, although it is important to note that their criteria and terms may vary. It is advisable to reach out to these institutions directly to inquire about their specific requirements and eligibility criteria.

2. Personal Lenders

In addition to traditional banks and credit unions, there are personal lenders who specialize in financing salvage and rebuilt title vehicles. These lenders understand the unique circumstances surrounding these cars and may be more flexible in their lending criteria. It is worth researching and contacting personal lenders who offer financing options for rebuilt title cars.

3. Specialty Banks and Credit Unions

There are also specialty banks and credit unions that focus on financing branded or rebuilt title vehicles. These institutions have a deep understanding of the salvage and rebuilt title market and may be more open to providing financing options. Research and reach out to these specialty institutions to explore their offerings.

4. Dealership Financing

Some dealerships offer financing options for rebuilt title cars through indirect lending. This means that the dealership works with third-party lenders to secure financing for the buyers. It is important to carefully review the terms and conditions of dealership financing, as interest rates and fees may be higher compared to other financing options.

5. Online Lenders

With the rise of online lending platforms, there are also online lenders that provide financing for rebuilt title cars. These lenders often have a streamlined application process and may offer competitive interest rates. It is crucial to research and compare different online lenders to find the best option for your specific needs.

6. LightStream

LightStream, a division of SunTrust Bank, is known for providing loans for various purposes, including financing salvage or rebuilt vehicles. They have specific loan programs designed for these types of cars. LightStream offers competitive interest rates and flexible terms, making them a popular choice among buyers of rebuilt title cars.

It is important to note that the eligibility criteria and terms for financing rebuilt title cars may vary among lenders. It is advisable to shop around, compare rates, and thoroughly read the terms and conditions before committing to any financing option.

Pros and Cons of Financing a Rebuilt Title Car

While financing a rebuilt title car can open up opportunities to purchase a more affordable vehicle, it is essential to consider the pros and cons before making a decision.

Pros:

• Affordability: Rebuilt title cars are typically sold at a lower price compared to their clean title counterparts.
• Extensive History: Rebuilt title cars often come with detailed repair and maintenance records, providing transparency about the vehicle's history.
• Potential Savings: Financing a rebuilt title car may result in lower monthly payments and potentially lower interest rates compared to financing a new or clean title car.

Cons:

• Insurance Challenges: Insuring a rebuilt title car can be more difficult and may come with higher insurance premiums.
• Resale Value: Rebuilt title cars generally have a lower resale value compared to clean title cars, which can impact your ability to recoup your investment in the future.
• Unreliable Documentation: While rebuilt title cars often come with repair records, it is essential to carefully review the documentation as it may not always be reliable or complete.

Conclusion

Financing a rebuilt title car may require some additional effort compared to financing a clean title car, but it is possible to find suitable financing options. Major banks, personal lenders, specialty institutions, dealership financing, online lenders, and LightStream are potential sources of financing for rebuilt title cars. It is crucial to carefully consider the pros and cons before making a decision and to thoroughly research and compare financing options to find the best fit for your specific needs.

Remember, when purchasing a rebuilt title car, it is important to have a thorough inspection conducted by a trusted mechanic to ensure the vehicle's safety and roadworthiness.