Sometimes you may find those too-good-to-be-true deals on amazing trucks. If the price is not a typo, then there might be a problem with the vehicle, because you know dealers are not known for their charity work. Salvage title trucks can be the best solution when you want to buy great, affordable vehicles.
Often times when you find one of those aforementioned opportunities to buy a salvage title truck you have a few questions. What is a salvage title truck? How did they get that title? You will find both of those answers right here.
Although we gave you a link, we will refresh your memory. A “salvage title vehicle” means, it’s a vehicle that has been in an accident or damaged in some way. The damage is so significant that the insurance company thinks it is too costly to repair. As a result, the vehicle is sent to a junkyard. Buyers can fix them up and turn them into a cheap transportation option or resell them for a little profit.
If you are at that point where you are considering buying a damaged salvage vehicle, there a few things to consider. The most important question is: can you finance a salvage truck? Because salvage car brokers,such as Copart, require payment in full at the end of the car auction. What should you do if you don’t have all that cash at hand?
Can You Get A Title Loan On Salvage Title Trucks?
Right off the bat, most banks look at investing in salvage vehicles as a risky investment. We know the vehicle was written off as a “total loss” by the insurance company for a number of reasons. So it is understandable that the banks are iffy about financing a damaged or repaired car. It doesn’t matter if you want trucks like Toyota Tundra, Nissan Titan, Chevrolet Colorado and Silverado, Ford F-Series or Dodge Ram. If you are trying to finance a salvaged truck that has not yet been rebuilt, traditional lenders will not be an option.
However, not everything is lost. It’s time to turn to one of the best lenders of all: family. If that doesn’t work, go to Plan B: friends. They both need to be willing to take a chance. No one likes to owe family and friends. What if you end up having to avoid bumping into them?
Also, don’t forget that you need cash after you buy the salvage truck. There are costs such as arranging transportation of the salvage vehicle and its repairing. The final “blow” is inspecting your truck so it can be reclassified as “rebuilt” and able to be on the roads again.
Everyone Thinks I’m Crazy For Buying A Salvage Truck. What Should I Do?
Don’t lose hope just yet! The following steps consist of a bunch of “IFs”.
- If you must go to a bank, the best thing to do is to go to an institution you have a good relationship with., Needless to say, you will need a great credit score to get help from them. If you’ve had a past auto loan experience with them, it makes your life easier. In case you know an agent, talk to him/her personally. It helps a lot. Face-to-face is always the best option;
- If option numero uno doesn’t work, look for a second-tier (even third) lenders who claim to finance salvage title cars. But be ready to pay high-interest rates to those people.
Remember: To finance a salvage vehicle is a risky investment. If you do get someone to finance it for you, the interest rates will be higher than if you bought a vehicle with a clean title. Do your research and make sure this purchase and effort are worth it. Good luck!