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Financing a car with a salvage title?


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70 replies to this topic

#26 spotlessbureau

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Posted 20 February 2012 - 10:07 PM

Steer clear...Even if you get that approved when he is bored with it no one else will want to buy it. Always figure Salvage cars at lease half of rough trade value.



#27 colorado_guy

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Posted 20 February 2012 - 11:01 PM

If you spend $20,000 on a used IS250 and finance it through PenFed for 48mo, your payments will be $433

If you spend $16,000 on a salvage IS250 and finance it at 13%, you'll have a payment of $429

I know you can get a personal loan at less than 13%. You could actually put the car on a credit card with a 0% introductory rate [the dealer would be less likely to give you a good deal if they have to pay the transaction fee, but they should be happy to unload a salvage car that they can't offer financing on]

If you get a good credit card [like an SF Fire CU Visa] they will advance you cash at 7.25% apr and there is no cash advance fee. This is basically a personal line of credit at 7.25%. You're still well under the 13% threshold.

I would suggest negotiating a little more on the price of that car, though. If it was professionally rebuilt, I would only offer 50% of Blue Book.
If the car had a clean title, I would offer 80% of Blue Book.

This car is going to be hard to sell. Don't let your desire for it cloud the facts. This is an incredibly hard car for them to sell and it's going to be incredibly hard to resell. You're going to need to hold onto it until the value is below $8,000. Not many people buy used cars with more than $8,000 cash.





Nobody will sell you a 2008 Lexus for 8k cash, believe me :rolleyes:


Blue Book is around 24k as it is AWD, fully loaded with all options including GPS, back up camera, paddle shifters etc. 54k miles. 16k is a good price. This is not the point thought.

I told him to open something like "Citi Platinum Select" with 0% APR for 21 months and try to buy it with that but we are not sure how this is going to work with a private seller without a merchant account.

Again guys thank you so much for different opinions and research you have done. My question is still the same: let me know if you know of any banks that will finance a car with "rebuilt from salvage" title. I know there are some out there, just do not know where to ask besides this forum. Thank you

Edited by colorado_guy, 20 February 2012 - 11:03 PM.


#28 colorado_guy

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Posted 20 February 2012 - 11:07 PM

Steer clear...Even if you get that approved when he is bored with it no one else will want to buy it. Always figure Salvage cars at lease half of rough trade value.

So not true. I have a friend who is a dealer, he sells "rebuilt cars". The price difference is around 2k for a 10k car (20%). Repo's, Theft Recovery etc does not make the car worse than the one that dealer has bought from the auction and fixed for a fast sale... at least for me it does not.




#29 road2freedom

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Posted 20 February 2012 - 11:38 PM

Yikes... that price is pretty close to the clean trade in value of an IS250 with a clean title and no repairs. There's no way I'd pay more than 6-8k for it and even then I'd have it inspected headlight to tail pipe.

#30 road2freedom

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Posted 20 February 2012 - 11:42 PM

Just keep in mind about the BT... the fee with Citi is usually 3%, so an extra $480. If he qualifies for a card without a fee, that would be worth some consideration.If the seller accepts it as a purchase they may want to inflate the price to pass on the merchant fee (even though technically they shouldn't do this).

Edited by road2freedom, 20 February 2012 - 11:44 PM.


#31 spotlessbureau

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Posted 21 February 2012 - 12:06 AM


Steer clear...Even if you get that approved when he is bored with it no one else will want to buy it. Always figure Salvage cars at lease half of rough trade value.

So not true. I have a friend who is a dealer, he sells "rebuilt cars". The price difference is around 2k for a 10k car (20%). Repo's, Theft Recovery etc does not make the car worse than the one that dealer has bought from the auction and fixed for a fast sale... at least for me it does not.


I as a dealer want nothing to do with salvage cars. Not many wholesalers I know will touch them. I know one guy who buys nothing but salvage cars. My reputation is worth more than that. I have heard a million horror stories about salvage cars having permanent alignment issues, weird electrical glitches and other things that surface after the fact. Salvage is not worth the hassle. With the viral marketing Carfax is doing it's tough enough to sell cars that have been in minor accidents. An IS250 is not a car you want with a salvage title. When he is bored with it and is ready to trade out of it he will be stuck.

http://cgi.ebay.com/...#ht_8462wt_1165

http://cgi.ebay.com/...ht_23351wt_1165

#32 colorado_guy

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Posted 21 February 2012 - 12:16 AM



Steer clear...Even if you get that approved when he is bored with it no one else will want to buy it. Always figure Salvage cars at lease half of rough trade value.

So not true. I have a friend who is a dealer, he sells "rebuilt cars". The price difference is around 2k for a 10k car (20%). Repo's, Theft Recovery etc does not make the car worse than the one that dealer has bought from the auction and fixed for a fast sale... at least for me it does not.


I as a dealer want nothing to do with salvage cars. Not many wholesalers I know will touch them. I know one guy who buys nothing but salvage cars. My reputation is worth more than that. I have heard a million horror stories about salvage cars having permanent alignment issues, weird electrical glitches and other things that surface after the fact. Salvage is not worth the hassle. With the viral marketing Carfax is doing it's tough enough to sell cars that have been in minor accidents. An IS250 is not a car you want with a salvage title. When he is bored with it and is ready to trade out of it he will be stuck.

http://cgi.ebay.com/...#ht_8462wt_1165

http://cgi.ebay.com/...ht_23351wt_1165


I got your point and I will not argue. I am still seeking the answer to my original question. Thank you




#33 jst300z

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Posted 21 February 2012 - 09:08 AM

I got your point and I will not argue. I am still seeking the answer to my original question. Thank you


Marvbear, who pretty much has full knowledge of the auto industry stated:

In all my years in the business, I do not know of any lender who would finance a vehicle with a salvage/branded title.


Best of luck to your buddy.

#34 raven730

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Posted 21 February 2012 - 03:14 PM

I have 2 cars finance that have salvaged titles. Sounds like car dealers on here not wanting you to buy except thru them. I have mine at the credit union. one was %80 of book the other was ~ %70.. most will lend but not more than %50.. Geico and farm bureu and state farm all have insured the vehicles. They just have to see it first to make sure it is not wrecked.

#35 spotlessbureau

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Posted 21 February 2012 - 06:51 PM

I have 2 cars finance that have salvaged titles. Sounds like car dealers on here not wanting you to buy except thru them. I have mine at the credit union. one was %80 of book the other was ~ %70.. most will lend but not more than %50.. Geico and farm bureu and state farm all have insured the vehicles. They just have to see it first to make sure it is not wrecked.


This forum is setup to help people make wise financial decisions and I think I speak for everyone who responded here when I say we made the comments we made in the best interest of the buyer. I don't expect to sell him a car. I don't have an IS right now for one and two i'm in South Carolina. However if you have a credit union that will finance the car. Pass the information along to him instead of commenting about our "intentions"

#36 mk_378

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Posted 21 February 2012 - 07:55 PM

I'm not a car dealer but I agree it is foolish to spend that much for that car if it has been wrecked. Maybe if it was just stolen and recovered with no apparent damage. But seriously, shop around and buy a clean one and enjoy literally infinitely better resale value.

Edited by mk_378, 21 February 2012 - 07:59 PM.


#37 MarvBear

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Posted 21 February 2012 - 07:58 PM

I have 2 cars finance that have salvaged titles. Sounds like car dealers on here not wanting you to buy except thru them. I have mine at the credit union. one was %80 of book the other was ~ %70.. most will lend but not more than %50.. Geico and farm bureu and state farm all have insured the vehicles. They just have to see it first to make sure it is not wrecked.



I don't give a rat's behind where anyone purchases a vehicle. I DON'T COME ON THIS BOARD TO SOLICIT BUSINESS, NOR DO I BELIEVE ANY OTHER PERSON INVOLVED IN THE AUTO BIZ THAT IS A MEMBER HERE SOLICITS BUSINESS.

I'M MORE THAN HAPPY TO GIVE A LITTLE ADVICE, BUT I DO NOT WANT YOUR BUSINESS. AND I REMAIN OFFENDED BY THE POSTERS REMARK.


and I apologize for preempting the OP's thread.

#38 road2freedom

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Posted 21 February 2012 - 08:00 PM

I have 2 cars finance that have salvaged titles. Sounds like car dealers on here not wanting you to buy except thru them. I have mine at the credit union. one was %80 of book the other was ~ %70.. most will lend but not more than %50.. Geico and farm bureu and state farm all have insured the vehicles. They just have to see it first to make sure it is not wrecked.


Presumptuous post without any actual helpful information, like who financed your 2 salvage cars... :rolleyes:

I'm not a dealer... just have bought quite a few cars over the years.

#39 hoapres

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Posted 21 February 2012 - 08:49 PM


If you spend $20,000 on a used IS250 and finance it through PenFed for 48mo, your payments will be $433

If you spend $16,000 on a salvage IS250 and finance it at 13%, you'll have a payment of $429

I know you can get a personal loan at less than 13%. You could actually put the car on a credit card with a 0% introductory rate [the dealer would be less likely to give you a good deal if they have to pay the transaction fee, but they should be happy to unload a salvage car that they can't offer financing on]

If you get a good credit card [like an SF Fire CU Visa] they will advance you cash at 7.25% apr and there is no cash advance fee. This is basically a personal line of credit at 7.25%. You're still well under the 13% threshold.

I would suggest negotiating a little more on the price of that car, though. If it was professionally rebuilt, I would only offer 50% of Blue Book. I would offer no more than 33% of Blue Book with the expectation that I won't be selling it and running it into the ground.
If the car had a clean title, I would offer 80% of Blue Book.

This car is going to be hard to sell. Don't let your desire for it cloud the facts. This is an incredibly hard car for them to sell and it's going to be incredibly hard to resell. You're going to need to hold onto it until the value is below $8,000. Not many people buy used cars with more than $8,000 cash.





Nobody will sell you a 2008 Lexus for 8k cash, believe me :rolleyes:


Blue Book is around 24k as it is AWD, fully loaded with all options including GPS, back up camera, paddle shifters etc. 54k miles. 16k is a good price. This is not the point thought.

I told him to open something like "Citi Platinum Select" with 0% APR for 21 months and try to buy it with that but we are not sure how this is going to work with a private seller without a merchant account.

Again guys thank you so much for different opinions and research you have done. My question is still the same: let me know if you know of any banks that will finance a car with "rebuilt from salvage" title. I know there are some out there, just do not know where to ask besides this forum. Thank you



#40 hoapres

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Posted 21 February 2012 - 08:51 PM


If you spend $20,000 on a used IS250 and finance it through PenFed for 48mo, your payments will be $433

If you spend $16,000 on a salvage IS250 and finance it at 13%, you'll have a payment of $429

I know you can get a personal loan at less than 13%. You could actually put the car on a credit card with a 0% introductory rate [the dealer would be less likely to give you a good deal if they have to pay the transaction fee, but they should be happy to unload a salvage car that they can't offer financing on]

If you get a good credit card [like an SF Fire CU Visa] they will advance you cash at 7.25% apr and there is no cash advance fee. This is basically a personal line of credit at 7.25%. You're still well under the 13% threshold.

I would suggest negotiating a little more on the price of that car, though. If it was professionally rebuilt, I would only offer 50% of Blue Book.
If the car had a clean title, I would offer 80% of Blue Book.

This car is going to be hard to sell. Don't let your desire for it cloud the facts. This is an incredibly hard car for them to sell and it's going to be incredibly hard to resell. You're going to need to hold onto it until the value is below $8,000. Not many people buy used cars with more than $8,000 cash.





Nobody will sell you a 2008 Lexus for 8k cash, believe me :rolleyes: I would offer $5K. Take it or leave it.


Blue Book is around 24k as it is AWD, fully loaded with all options including GPS, back up camera, paddle shifters etc. 54k miles. 16k is a good price. This is not the point thought.

I told him to open something like "Citi Platinum Select" with 0% APR for 21 months and try to buy it with that but we are not sure how this is going to work with a private seller without a merchant account.

Again guys thank you so much for different opinions and research you have done. My question is still the same: let me know if you know of any banks that will finance a car with "rebuilt from salvage" title. I know there are some out there, just do not know where to ask besides this forum. Thank you



#41 hoapres

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Posted 21 February 2012 - 08:54 PM

I'm not a car dealer but I agree it is foolish to spend that much for that car if it has been wrecked. Maybe if it was just stolen and recovered with no apparent damage. But seriously, shop around and buy a clean one and enjoy literally infinitely better resale value.


Buying a salvaged vehicle that is in sound mechanical condition for the RIGHT price can be a very good deal. Key operative phrase "the RIGHT price". You proceed under the assumption that the car is WORTHLESS when you want to sell it.

#42 EvoX

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Posted 21 February 2012 - 09:13 PM

I have 2 cars finance that have salvaged titles. Sounds like car dealers on here not wanting you to buy except thru them. I have mine at the credit union. one was %80 of book the other was ~ %70.. most will lend but not more than %50.. Geico and farm bureu and state farm all have insured the vehicles. They just have to see it first to make sure it is not wrecked.


That's funny.

Tell your friend to get a Ralliart. Mistubishi is often offering 0% financing. The payments will be about the same if you add 12 months to the loan. The car will have resale value when it's paid off too.

I wouldn't expect a good credit limit on any card that offered 0% intro APR, those cards usually give you less than other lenders would give you. If you normally get approved for $15k limit, I would expect a 0% Intro APR card to give you $7,500 limit.

You could always PayPal the money to yourself if you don't mind paying the 4% fee, assuming the seller doesn't accept credit cards.

Or if you are feeling sketchy, you could buy a dozen SLR cameras from Costco's website and return them one at a time to the store. They might revoke your membership, or you might get cash at 0% APR.

#43 EvoX

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Posted 21 February 2012 - 09:21 PM


Steer clear...Even if you get that approved when he is bored with it no one else will want to buy it. Always figure Salvage cars at lease half of rough trade value.

So not true. I have a friend who is a dealer, he sells "rebuilt cars". The price difference is around 2k for a 10k car (20%). Repo's, Theft Recovery etc does not make the car worse than the one that dealer has bought from the auction and fixed for a fast sale... at least for me it does not.




Sounds like you already have the answer to your question.

If your friend has a car dealership that sells salvaged cars, he would be the best person to ask about how to finance them.

Interesting how you have a friend who is selling salvaged cars and a friend who is buying a salvaged car.

#44 colorado_guy

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Posted 21 February 2012 - 11:17 PM

I have 2 cars finance that have salvaged titles. Sounds like car dealers on here not wanting you to buy except thru them. I have mine at the credit union. one was %80 of book the other was ~ %70.. most will lend but not more than %50.. Geico and farm bureu and state farm all have insured the vehicles. They just have to see it first to make sure it is not wrecked.


Thank you for the comment. Finally someone who actually tried to answer my question instead of advising on the salvage car values and other options. Mitsubishi was the funniest one so far :search:.


Please advise on what CUs did you use to finance. Thank you



#45 colorado_guy

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Posted 21 February 2012 - 11:20 PM

Again, I am not trying to argue here, just looking for a simple answer. If you do not have it it is fine.

Edited by colorado_guy, 21 February 2012 - 11:24 PM.


#46 colorado_guy

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Posted 21 February 2012 - 11:22 PM




If you spend $20,000 on a used IS250 and finance it through PenFed for 48mo, your payments will be $433

If you spend $16,000 on a salvage IS250 and finance it at 13%, you'll have a payment of $429

I know you can get a personal loan at less than 13%. You could actually put the car on a credit card with a 0% introductory rate [the dealer would be less likely to give you a good deal if they have to pay the transaction fee, but they should be happy to unload a salvage car that they can't offer financing on]

If you get a good credit card [like an SF Fire CU Visa] they will advance you cash at 7.25% apr and there is no cash advance fee. This is basically a personal line of credit at 7.25%. You're still well under the 13% threshold.

I would suggest negotiating a little more on the price of that car, though. If it was professionally rebuilt, I would only offer 50% of Blue Book.
If the car had a clean title, I would offer 80% of Blue Book.

This car is going to be hard to sell. Don't let your desire for it cloud the facts. This is an incredibly hard car for them to sell and it's going to be incredibly hard to resell. You're going to need to hold onto it until the value is below $8,000. Not many people buy used cars with more than $8,000 cash.





Nobody will sell you a 2008 Lexus for 8k cash, believe me :rolleyes: I would offer $5K. Take it or leave it.


Blue Book is around 24k as it is AWD, fully loaded with all options including GPS, back up camera, paddle shifters etc. 54k miles. 16k is a good price. This is not the point thought.

I told him to open something like "Citi Platinum Select" with 0% APR for 21 months and try to buy it with that but we are not sure how this is going to work with a private seller without a merchant account.

Again guys thank you so much for different opinions and research you have done. My question is still the same: let me know if you know of any banks that will finance a car with "rebuilt from salvage" title. I know there are some out there, just do not know where to ask besides this forum. Thank you





Let me know when you find a 2008 IS250 for 5k, I can buy it from you for 10k! :yahoo:





#47 mk_378

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Posted 22 February 2012 - 09:28 AM

How about one that has been under water? Literally under flood water, not just excessively financed.

#48 twizzle

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Posted 23 February 2012 - 07:41 AM

Again, I am not trying to argue here, just looking for a simple answer. If you do not have it it is fine.


My parents had naively purchased a Mercedes station wagon w a salvage. They used Wings FCU and Amica insured it. Their friend, who is a dealer, sold it to them. An aside, but he's no longer their friend because of it and they got rid of the car (auction), but not without taking a loss on it. I don't know if this will help, however, as this was some time ago, as in pre-recession time ago.

Edited by twizzle, 23 February 2012 - 07:43 AM.


#49 colorado_guy

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Posted 23 February 2012 - 10:10 PM


Again, I am not trying to argue here, just looking for a simple answer. If you do not have it it is fine.


My parents had naively purchased a Mercedes station wagon w a salvage. They used Wings FCU and Amica insured it. Their friend, who is a dealer, sold it to them. An aside, but he's no longer their friend because of it and they got rid of the car (auction), but not without taking a loss on it. I don't know if this will help, however, as this was some time ago, as in pre-recession time ago.


Thank you. Do you need to be eligible or live in a certain area to join Wings FCU?

#50 hoapres

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Posted 24 February 2012 - 12:21 AM

How about one that has been under water? Literally under flood water, not just excessively financed.


I picked up a car literally under water for a "couple of bucks" being a "couple of Benjamins" for $200. The car lasted about 2 months and was able to sell it to the junk yard for $50




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