Can You Get A Loan On A Rebuilt Title

Every year, my neighborhood mechanic has his trainees and new hires work on extremely nice vehicles with salvage titles as part of their training. They hold a small car show and auction off the vehicles once everyone has completed their repairs and received rebuilt titles. Can you get a loan for a rebuilt title car since I’ve had my eye on one for some time?

Much like insurance, many lenders may not finance a vehicle with a rebuilt title due to the risk they carry. In the event that you do find a lender willing to take this on, your interest rate will probably be exorbitant. If you’re looking to purchase this kind of car, you’ll probably have to do so with cash.

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FAQ

What is the downside of a rebuilt title?

The Manufacturer’s Warranty on a Rebuilt Title Car Is Usually Voided When a car is declared totaled or registered as a salvage car, the manufacturer’s original warranty is usually voided. Therefore, even if the vehicle is practically new, you could be responsible for costly repairs that could arise from hidden damage.

Why do people not buy rebuilt titles?

Rebuilt titles could cause buyers to be wary because they typically indicate that the vehicle has previously been involved in a serious accident or even been totaled. Rebuilt titles should be avoided by prospective buyers considering investing in a vehicle because of potential issues arising from prior accidents.

Are cars with rebuilt titles worth buying?

Even under ideal conditions, a vehicle with a rebuilt title is worth less than a typical one, so you should insist on paying that amount. Because there are too many factors, we are unable to provide you with a target discount, but suffice it to say that a vehicle with a salvage title may be priced significantly below market value.

Will Capital One finance a rebuilt title?

There are few financing options available because most lenders, including Capital One, won’t lend you money to purchase a vehicle with a salvage title. Because it’s harder to sell a car with a salvage title, you might end up having to keep it.