6 Invaluable Tips on Financing Salvaged Cars

It might sound paradoxical to say a salvage title can be dependable, but you will be surprised to find perfect bargains in insurance auctions. What’s more, the theory that financing a salvage title is impossible is totally misplaced.

Benefits of Investing in a Salvaged Vehicle

But why opt for salvaged cars? The title seems ominous, for starters, but this is just a term that describes a car that has been declared a loss by an insurance company. This means the company has assessed and found the value of the car is less than the cost of repairs.

While most salvage titles are declared so after accidents, you can get lucky and get a theft recovery or vandalized car in the lot. Repairs for such cars are minimal and you will have bought the car at a throwaway price.

Financing for a Salvage Title

With this hindsight, it is obvious that with dedicated research you can save a lot of money by investing in salvaged cars. However, financing is the hardest part, and in order to ensure you don’t lose out on your bargain, consider these factors:

1. Do Your Research on Financiers

Truth be told, car owners miss auto on financing options due to lack of information. As such you need to carry out research, ask for referrals from other car owners and read reviews on salvage car financing. Once you find a lender with such a product, initiate contact and start learning more.

2. Buy a Credible Salvage

Your financing collateral is the car you buy and as such, you need to ensure you only purchase a car that has passed all inspection criteria. The idea here is to get a car that once repaired can act as collateral for a lender to consider your request.

3. Compare and Bargain Till You Drop

Well, the financial market is inundated with lenders whose packages are flexible. As such, don’t pick the first but instead look for as many quotes as possible. Write these down and compare them as you negotiate with each for a better deal.

4. Consider Your Credit Score

This is the holy grail of any form of financing therefore, before making a salvage title purchase, remember this will affect your financing options. You might get a good salvage car but the high premiums involved in financing such a deal will be made worse by your poor credit score. It thus pays to first organize your credit record before buying a salvage car and financing the deal.

5. Leverage Professional Expertise in Salvage Inspection

A salvage title can look nice when assessed using the naked eye, but only a thorough expert inspection will identify viability of such a buy. You must have experts comb through every nook and crook of the car in order to use their findings and other available documentation to bargain for better financing options.

6. Capitalize on Current Lender Relationships

Before starting your search for salvage title financier, consider your current lenders and build on your relationship. These financiers know you and it is easier to initiate contact and bargain ruthlessly.

Who said salvage car financing is not possible? You just need to do it right to get your car on the road.

BIO

Ben Wagner is an automobile technician who has worked in this industry for over 40 years. He is a part-time restorer of salvaged cars and shares his thoughts on his motoring blog.