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- Damaged Cars
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- Broken Vehicles
- Non-starters
- Free Collection
- Fast & Easy Process
Can You Finance a Rebuilt Title Car?
If your dream ride comes with a rebuilt title and you can’t afford the upfront cost, you’re probably considering finance.
It’s possible to get finance on a rebuilt title car, but not with an auto loan. Paying in cash is preferred, but if this isn’t an option, we recommend a personal loan. Ensure you thoroughly research lenders and insurance options before committing to a purchase.
Eligibility and loan terms will depend on your credit history, assets, relationship with the lender, and if you’re financing a purchase from a dealership or a private seller. We have more information on financing a salvage title car here.
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Can you get an auto loan for a rebuilt title car?
Most major banks and lenders won’t finance rebuilt titles with an auto loan. This comes down to collateral. With an auto loan, the car itself secures the loan. As your rebuilt car was once totaled, lenders see it as high-risk and are unlikely to finance it. Rebuilt cars also have a lower resale value, meaning the lender could struggle to recover the full amount if you default.
Resale value and vehicle history can also make it harder for you to sell the car later. It’s easier to keep a rebuilt title car long-term and then sell it to a broker like Wheelsaway for either junk or salvage when you’re done, depending on its condition.
Auto loans are the preferred loan for a rebuilt title car because they’re secured, have larger borrowing limits, longer repayment terms, and easier approval. Alternative options like personal loans often come with higher interest rates and tougher barriers to entry.
Loan types for rebuilt title cars
Can’t find an auto loan for a rebuilt title? You can still finance your purchase. Loans you could use include:
- Personal loans: These are available from most banks, lenders, and credit unions. Personal loans are unsecured and require no collateral. However, you will need a good to excellent credit score to be accepted.
- Title loans: If you already own a car, you can borrow against its title. These short-term, high-interest loans are generally not recommended due to their high interest rates and the risk of repossession.
Research lenders thoroughly to secure the best deal.
Who will finance a rebuilt title car?
There are smaller lenders, credit unions, and banks that finance rebuilt titles. Acceptance will depend on loan type, your credit history, your relationship with the lender, and whether you’re financing a vehicle that’s being purchased through a dealership or a private seller.
You will almost always need to use a personal loan to finance a rebuilt title that is from a private seller or an auction. This is because auto loan options are limited, and many dealerships that sell rebuilt title cars, such as Recar and Autosavvy, already partner with a network of trusted lenders. The lender may only finance a vehicle purchased from an approved dealership, and vice versa.
If you want to finance a purchase from a private seller or auction, talk to your bank or credit union for more information on personal loans.
Buying from an approved dealer and lender network is recommended for full transparency on vehicle history. Some examples include:
Autosavvy is one of the biggest used car dealerships in the U.S, and works with a network of approved lenders to help you finance your purchase.
Financing on branded titles is available in the following states: Gilbert, Colorado, Florida, Idaho, Indiana, Nevada, Texas, New Mexico, and Utah.
Interest rates vary and depend on your credit history and the lender you’re matched with.
Recar, based in Benton, Missouri, is a car dealership that claims to offer competitive and flexible finance options on rebuilt title cars.
Term lengths and APR will depend on your down payment, loan term length, the cost of the vehicle, and the lender you’re matched with.
Note: Recar can ship vehicles both domestically and internationally. Contact the dealership for more information.
Can you insure a rebuilt title car?
To finance a car with a rebuilt title, you’ll need insurance.
Many insurers only offer liability coverage on rebuilt title cars. The catch here is that most lenders require comprehensive coverage to finance a rebuilt car. In the event of damage, theft or an accident, full coverage ensures the insurance company can pay off the lender.
Without full coverage, if your car ended up being written off, the lender wouldn’t get a payout from the insurance company and you’d both end up absorbing the cost.
Consider this carefully before you buy a rebuilt title car.
You can find out more about insurance options for rebuilt title cars in our guide to buying a rebuilt title car.
Final thoughts
It’s possible to finance a rebuilt title car, but it’s not easy, and we wouldn’t recommend it. With limited auto loan and insurance options, you’ll probably end up using a personal loan, which can come with high interest rates and shorter repayment terms. If you need to use a personal loan, research banks and lenders thoroughly to secure the best deal.