Banks that finance salvage titles for a salvage-branded vehicle is difficult and expensive. Most lenders consider vehicles branded salvage to have significant damage, so they’re more likely to write off the car as a total loss and refuse to finance it.
It’s possible to buy a salvage-branded car if you have good credit and a large down payment. Some buyers do so to save money on a car they can afford or for the challenge of fixing it up. Some also do it to avoid wear and tear on a newer car they plan to drive for many miles. Other people simply like to shop for a bargain or find a project car that can be used for years as a daily driver.
Breaking Barriers: Banks That Finance Salvage Titles – What You Need to Know
If you’re planning to purchase a car with a salvage title, make sure the mechanic inspects it before purchasing it and that you understand the risks and costs. Some types of damage can make the car unsafe or costly to drive, and some may cause other issues later on. Without a detailed and certified inspection from a mechanic, a lender may pass on financing the car.
Some lenders do offer auto loans for salvage-branded cars, but they usually require a larger down payment and more strict credit requirements than traditional auto loan lenders. Some of them also charge high-interest rates. In addition to a full auto loan application, you’ll need a clear salvage car title, photo ID, proof of income (like pay stubs or bank statements), and other documents that vary by lender.
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