Financing Rebuilt Title Cars: What You Need to Know

Disclaimer: This content is provided for informational purposes only and does not intend to substitute financial, educational, health, nutritional, medical, legal, etc advice provided by a professional.

What is a Rebuilt Title?

A rebuilt title is a type of vehicle title that is given to a car that has been previously declared a total loss by an insurance company but has since been repaired and restored to a roadworthy condition. This means that the car has been involved in a significant accident, flood, or other event that caused extensive damage. However, it has been repaired and deemed safe to drive again.

Pros and Cons of Rebuilt Titles

Before considering financing a rebuilt title car, it's important to understand the pros and cons associated with these types of vehicles.

Pros:

May cost less: Rebuilt title cars are often priced lower than their clean title counterparts due to their history of damage.
Extensive history: Rebuilt title cars come with a detailed repair history, which can provide valuable information about the work that has been done on the vehicle.
It might not be so bad: Some rebuilt title cars have only sustained minor damage, making them a good option for budget-conscious buyers.

Cons:

Typically more difficult to insure: Insurance companies may be hesitant to provide coverage for a rebuilt title car due to its previous damage.
Documentation isn't always reliable: It's important to thoroughly review the repair documentation of a rebuilt title car to ensure that the repairs were done properly and meet safety standards.
It might be worse than you thought: While some rebuilt title cars have minor damage, others may have significant underlying issues that could lead to costly repairs in the future.

How Does Financing a Rebuilt Title Car Work?

Financing a rebuilt title car can be more challenging compared to financing a car with a clean title. However, there are still options available for those looking to finance a rebuilt title car.

Major banks that finance salvage and rebuilt title vehicles:

Wells Fargo
Chase
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Personal lenders financing salvage cars and trucks:

Specialty banks and credit unions financing branded / rebuilt titles:

Dealership financing, indirect lending on salvage trucks and cars:

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Call LightStream first for salvage or rebuilt vehicle lending:

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Steps to Buying a Car With a Rebuilt Title

Research the Car's History
Get a Professional Inspection
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Is Financing a Rebuilt Title Car Right for You?

Financing a rebuilt title car can be a viable option for those looking to save money on their purchase. However, it's important to carefully consider the pros and cons and thoroughly research the car's history and repair documentation before making a decision.

Conclusion

While financing a rebuilt title car may come with some challenges, it can also offer significant savings for budget-conscious buyers. By understanding the pros and cons and thoroughly researching the car's history, buyers can make an informed decision about whether a rebuilt title car is the right choice for them.