Is It Possible To Get Financing For A Salvages Car? Apparently, It Is…
Definition of terms
First, let’s be clear on what a salvaged car is. It is actually a salvage title car. It is a vehicle that has been in an accident or has had some significant damage done to it that it was written off by the insurance company. That means that as per the evaluation of the insurance company, it was not worth repairing so it goes off to the junk yard.
As a result, the title of the car indicates as salvage and the only people that would be interested in it are motor heads who need parts or they would actually want to fix up the whole car for use or resale.
Another definition for a salvaged car is one extensively damaged but has been rebuilt and put up for sale. Therefore, it is important to determine which of the two salvaged cars you are referring to.
None of them come for free
Whether it is the banged up salvage or the rebuilt one, you will still need some money to get it (obviously more for the rebuilt car). If you don’t have the money, you may try to get it from a financial institution or make some kind of payment arrangement with the car dealership.
I’ll be honest with you. There is no reasonable financing institution that will give you a loan for the ganged up salvage car. After all, if the insurance company saw no worth in it, why should it? You will have to get the cash through other means (keep them legal, please).
For a rebuilt salvage car, you will be able to negotiate for financing. All you need to do is satisfactorily prove to the lender that the car is in excellent form and runs safely. If you are buying the car from a dealership website like idealautousa.com, chances are the car will already have undergone inspection from a certified mechanic who will have provided a certificate to that effect. You can also have your own certified mechanic take a look and confirm the findings of the first.
You also need to get confirmation that your insurance will cover the car. If the insurer will not give you a policy, the bank will not give you the loan. Make sure to present these documents to the lender.
Choosing you lender
The other way to ensure that you get financing is to be smart about who you ask for the money. There are many ways to get a loan – from friends, family or banks. If you already have a relationship with a particular bank i.e. it has financed an auto loan for you before, use that relationship to get financing for this one. You may even get better rates as a loyal customer.
If you don’t have a previous relationship with any bank, you can search for financial institutions that are willing to finance salvage cars. You could ask the car dealership for some references and check out their rates to choose the best one for you. However, be prepared to pay a high interest rate; it’s just the way salvage car financing goes.