If you’re in the market for a car loan and you’re eyeing up a vehicle with a rebuilt title you might be wondering if banks will finance such a purchase. The good news is that many banks and lenders are willing to provide financing for rebuilt title cars. However it’s important to be aware that you may end up paying a higher interest rate than you would on a loan for a vehicle with a clean title.
Here’s what you need to know about getting a car loan for a rebuilt title vehicle.
What is a rebuilt title?
A rebuilt title is a vehicle title that has been issued by a state department of motor vehicles after the car has undergone significant repairs. In order to be issued a rebuilt title a car must pass a state-mandated inspection process.
The inspection process typically includes a thorough examination of the vehicle’s frame body engine transmission and suspension. Once the vehicle has been determined to be safe and roadworthy it will be issued a rebuilt title.
Why do banks finance rebuilt title cars?
Banks and lenders are willing to finance rebuilt title cars because they can be a good value for the money. A vehicle with a rebuilt title may have been seriously damaged in the past but it has been through the inspection process and has been determined to be safe and reliable.
Of course you’ll need to be aware that a bank may charge a higher interest rate for a loan on a rebuilt title car. This is because there is more risk involved in lending money for a rebuilt title car. But if you’re willing to pay a higher interest rate you’ll be able to get the financing you need to purchase a rebuilt title car.
What do I need to do to get a loan for a rebuilt title car?
If you’re interested in getting a loan for a rebuilt title car the first thing you’ll need to do is find a lender that is willing to finance such a purchase. You can start by checking with your local bank or credit union to see if they offer loans for rebuilt title cars.
If you’re unable to find a lender through your local bank or credit union you can search for online lenders that specialize in rebuilt title car loans. Once you’ve found a few potential lenders you’ll need to compare interest rates and loan terms to find the best deal.
Once you’ve found a lender that you’re happy with you’ll need to fill out a loan application and provide the lender with the necessary documentation. This will include proof of income proof of residency and the rebuilt title for the car you’re looking to purchase.
Once you’ve been approved for the loan you’ll be able to shop for your rebuilt title car and make the purchase. Just be sure to keep up with your loan payments and you’ll be able to drive your new car for years to come.
What is the name of the first bank to offer car loans?
Bank of America was the first bank to offer car loans.
How do banks determine if a car is rebuilt?
Banks typically order a vehicle history report to check for any accidents or damage that may have occurred to the car.