Any kind of used car being bought should always be checked and checked again to make sure what is being purchased doesn’t include a bunch of repair headaches covered up with duct tape or Bondo filler. That said, if a person goes into the transaction with eyes open and knows what to look for, financing a used car with a salvage title can be a fairly inexpensive way to finance a viable set of wheels.
Cars with salvage titles are specific category of vehicles sales required by law. When a salvage title is applied to a car, it means something catastrophic has happened to the car to take it out of normal registration circulation. Many times, such titles generate on vehicles that were in areas hit by disasters. Flooding is the most common cause of the greatest number of salvage title cars to hit markets on a regular basis. Most states have rules on the books that convert a car to salvage title when the expense to repair the vehicle is more than 75 percent of what the car is worth. This is often triggered with older cars.
Obviously, a car that has sat in flood waters for an extended period of time has suffered damage, both externally and to the interior. Most people would sign off such vehicle to the dump and focus on cars with regular titles and no record of having been in a disaster. That said, cars, like most machines, can be repaired and brought back to functioning life to work quite well, albeit the aesthetics might need replacement in the form of new interior carpet, new seats, etc.
In many cases, if the owners was smart enough not to start the car and instead just towed it after the flood to the mechanic, the car engine is probably still fine, even though it needs a cleaning out. Many of the other components are in the same condition, only items covered with fabric or open access to containers will need draining or replacement. Where the flooding involved sea water, however, the salt can do far more damage causing corrosion, electronics damage, and wiring damage. By the time these cars get to market, someone has already done the repair work, and it’s just a matter of the customer checking out the details to determine if the work is complete or cosmetic.
To finance such vehicles with a cheap car loan, the following is needed:
1. The buyer needs to have a good credit score, history, and track record of timely payments of past debt.
2. He needs to find a lender who is willing to finance a salvage title vehicle, since the car is usually the collateral for the loan to be provided.
3. The loan found needs to be at a low enough interest rate to make the purchase worthwhile. It makes no sense to by a cheap car and then spend an enormous amount of money on loan interest. When actually purchasing the vehicle, the buyer should make every attempt to get as much information about a given car as possible.
Banks who specialize in financing rebuilt vehicles...
Navy Federal Credit Union
Navy Federal Credit Union is a US credit union headquartered in Vienna, Virginia, chartered and regulated under the authority of the National Credit Union Administration
Call 1-888-503-7106, ext. 48492 for a free consultation.
Kemba Credit Union
Address: 1045 W 8th St, Cincinnati, OH 45203
Phone:(513) 762-5070
Citizens Financial Bank
Address: 8154 Montgomery Rd, Cincinnati, OH 45236
Phone:(513) 793-5600
Wright Patterson Air Force Base Credit Union
Wright-Patt Credit Union is a US credit union or financial cooperative headquartered in Fairborn, Ohio, near Dayton.
Address: 4560 Lafayette Ave Cincinnati, OH 45212
Phone:(800) 762-0047
USAA Financing
Phone: 210-531-USAA (8722)
L & N Federal Credit Union
Address: 822 Donaldson Hwy, Erlanger, KY 41018
Phone:(859) 283-5115
SEMC Credit Union
Address: 577 Dudley Road, Edgewood, KY 41017
Phone: (859) 578-5610