Banks That Finance Rebuilt & Salvage Titles

Every year, millions of perfectly good vehicles get branded with rebuilt or salvage titles, often due to minor accidents or cosmetic damage. But securing a loan for these diamonds in the rough can feel like an uphill battle. Many banks and lenders shy away from financing rebuilt titles or salvage vehicles, seeing them as too risky.

However, with the right approach and some diligent research, unlocking financing for a rebuilt or salvage title car is absolutely possible. Not only can you potentially save thousands by purchasing one of these vehicles, but you may even find a truly unique gem. This comprehensive guide will demystify the process and point you toward the banks and lenders willing to take a chance on branded titles.

What are Rebuilt and Salvage Titles?

Before we dive into financing options, it’s important to understand the key differences between a rebuilt and salvage title designation:

Rebuilt Title: If a vehicle has sustained significant damage (typically when repairs would cost more than the vehicle’s value), an insurance company may declare it a total loss and issue a “salvage” title. However, if that vehicle is later repaired according to state requirements, it can receive a “rebuilt” title and be legally driven on roads again.

Salvage Title: A vehicle with a salvage title has sustained major damage and has not yet undergone the required repairs and inspections to become rebuilt. Salvage vehicles are intended to only be sold for parts or scrapped, not driven, until rebuilt properly.

Many misconceptions surround rebuilt and salvage titles. A common myth is that these vehicles are fundamentally unsafe or destined for the junkyard. In reality, a properly rebuilt vehicle that passes all inspections can be just as roadworthy as any other car or truck. The stigma often comes from concerns over hidden damage, improper repairs, or the vehicle’s perceived resale value.

Yet for savvy buyers, rebuilt and salvage titles present opportunities to purchase vehicles at significant discounts compared to their normal market prices. According to Kelley Blue Book, a vehicle with a rebuilt title can be priced up to 25% less than one with a clean title, while a salvage titled vehicle can cost 40-70% below market value. With some due diligence on the vehicle’s condition, these steep discounts make it worthwhile to explore financing options.

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Real-World Pricing Examples

To illustrate the potential savings, let’s look at some real-world examples of rebuilt and salvage titled vehicles compared to their clean-title counterparts:

Vehicle	Clean Title Price	Rebuilt Title (-25%)	Salvage Title (-50%)
2019 Toyota Camry LE	$18,000	$13,500	$9,000
2017 Honda Pilot EX-L	$28,500	$21,375	$14,250
2015 Ford F-150 XLT Supercrew	$22,000	$16,500	$11,000
2022 Hyundai Sonata SEL	$25,000	$18,750	$12,500

Banks That Finance Rebuilt/Salvage Titles

While many banks and lenders are understandably cautious when it comes to rebuilt and salvage titles, a number of institutions recognize the appeal and market for these vehicles. Here are some national and regional banks known for offering financing on branded titles:

• Chase Auto Loan
• Wells Fargo Auto Loans
• Bank of America Vehicle Loans
• US Bank Auto Financing
• TD Bank Auto Lending
• Capital One Auto Navigator
• PenFed Credit Union Auto Loans
• Navy Federal Credit Union Vehicle Loans
• Arizona Federal Credit Union
• Republic Bank Rebuilt Title Loans
• Huntington Bank Rebuilt Auto Financing
• And more regional and local credit unions/banks

While policies can vary, these banks typically consider financing rebuilt titles on a case-by-case basis depending on factors like the vehicle’s age, repair costs, estimated value, and the buyer’s credit profile. Some lenders may not finance rebuilt commercial vehicles or any salvage titles at all.

For banks willing to lend on branded titles, they often require:

• More documentation of the vehicle’s condition, repair history, etc.
• Potentially higher interest rates or down payments
• The vehicle to pass a rigorous inspection
• The vehicle’s value to be established by a certified appraiser

It’s wise to contact multiple lenders, understand their specific requirements upfront, and be prepared with the necessary paperwork.

Inside Look: Chase Auto Rebuilt Title Financing

To provide some more specifics, let’s take a quick look at how Chase currently approaches rebuilt title loans:

• Chase will consider financing rebuilt titles on vehicles 6 years old or newer
• They require the vehicle to complete a VMCB inspection and appraisal
• Rebuilt title loans have a maximum 115% loan-to-value ratio
• Down payments of 10-20% are typically required
• Interest rates are typically 1-2% higher than standard used auto loans

While the process has some added steps, meeting Chase’s requirements can allow you to take advantage of their standard lending products like 75-month terms, deferred payments, cashback bonuses and more.

This illuminates how being organized and knowing each lender’s specific policies is important. With the proper preparation, getting approved for a rebuilt or salvage loan is certainly achievable with many major banks.

The Financing Process

While each bank has its own process for rebuilt and salvage title loans, there are some common steps involved:

1. Research extensively: Do your due diligence on the specific vehicle’s history, the extent of damage, the quality of repairs, etc. Obtain maintenance records, repair photos, and as much documentation as possible.
2. Get pre-approved: Many lenders recommend getting pre-approved for a loan amount before finding a vehicle. This shows you’re a serious buyer and can expedite securing financing once you’ve identified the right rebuilt/salvage vehicle.
3. Schedule inspections: Prepare for the vehicle to undergo bank-mandated inspections by certified mechanics/appraisers. Covering this upfront cost demonstrates your confidence in the vehicle’s condition.
4. Negotiate pricing: With inspections and value assessments in hand, negotiate the purchase price aggressively based on comparative pricing data for a similar vehicle with a clean title. Leverage the discounted pricing.
5. Provide documentation: Have records like titles, repair histories, old loans satisfied, and more ready to share with the lender to show the full picture.
6. Consider down payments: Putting down a higher upfront down payment (20% is typical for a rebuilt title) can improve approval odds and loan terms.

Persistence is key throughout this process. A strong credit profile, proof the vehicle has been properly reconditioned, and demonstrating you’ve done ample homework on its value can significantly improve your chances.

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Success Stories: Real Customers, Real Savings

Still skeptical about taking the rebuilt/salvage title plunge? Here are a couple quick testimonials from customers who did and reaped the rewards:

“After my sports car was totaled in an accident, I didn’t think I’d be able to afford another fun vehicle like that anytime soon. But when I found the identical make/model for literally half the price because it had a rebuilt title, I couldn’t pass it up. Sure, the financing took some extra paperwork, but it was well worth it to drive my dream car again while saving over $15,000!”

– Chris M., Fairfax, VA

As a single mom on a tight budget, the idea of buying a salvage titled SUV made me nervous at first. But the vehicle was only a year old and had simply been cleared out by a rental company after some minor hail damage. I worked with my credit union to get a loan for $7,000 when a similar clean title model was selling for over $20k. Three years later, it’s been the best car-buying decision I’ve made!

– Melissa R., Denver, CO

Stories like these demonstrate how a bit of legwork can uncover incredible deals in the rebuilt and salvage title vehicle market. Don’t let the branding automatically scare you off from your dream car or budget-friendly transportation.

Expert Tips for Rebuilt/Salvage Success

To maximize your chances of securing favorable financing on a branded title, keep these expert tips in mind:

Find a Dedicated Branded Title Lender

While many banks offer rebuilt/salvage loans, some lenders specialize specifically in financing branded titles. Doing business with one of these dedicated companies can make the process smoother, as they are extremely knowledgeable about the nuances and requirements involved. Some top options include Embassy Loans, Loan Mate, and Rebuilt Title Loans by ARCCA.

Get the Vehicle Thoroughly Inspected

Don’t rely solely on the seller’s word or descriptions of the vehicle’s condition and repair history. Insist on having a certified mechanic and appraiser thoroughly inspect any potential rebuilt or salvage purchase before financing. Documenting the vehicle’s roadworthiness will give lenders much-needed peace of mind.

Check State Title Branding Policies

Each state has specific definitions and requirements for what constitutes a rebuilt or salvage title. Some are stricter than others. Research your state’s policies to understand what the branding means and ensure any repairs were done to code. Improperly rebuilt vehicles can cause loan denials.

Leverage Your Credit Profile

As with any vehicle loan, having an excellent credit score and history will open up more options and better terms when financing branded titles. Take steps to build your credit if needed, and come prepared to make a larger down payment if your credit isn’t spotless.

Explore All Available Incentives

Don’t forget to look into any cash back, loyalty, or special rate discounts being offered by lenders. Many banks extend their standard new/used car incentives to branded titles as well. These incentives can help offset higher rates or fees.

Have Reasonable Expectations

While you can certainly find incredible value with a well-researched rebuilt or salvage purchase, go into the process expecting some additional hassle and higher costs compared to a normal car loan. Maintaining flexibility and managing expectations will prevent headaches.

By taking advantage of these expert tips and reputable lenders’ branded title programs, unlocking affordable auto financing on your next purchase is achievable. With preparation and an open mind, the savings can be truly significant.

Rebuilding Your Auto Loan Confidence

Pursuing a rebuilt or salvage titled vehicle is certainly more involved than a typical used car purchase. However, the potential rewards of securing financing and paying 25-70% less than the going market rate make it worthwhile to explore this path diligently.

With comprehensive research into the vehicle’s history and condition, a strong credit profile, ample documentation, and some tenacity, many banks and lenders can indeed be open to financing rebuilt and salvage titles. The key is being prepared, persistent, and willing to put in some extra due diligence upfront.

Furthermore, as demand grows for affordable vehicle options, lenders are gradually becoming more open-minded toward non-traditional financing routes like branded titles. According to a recent study by <a href=”https://rebuildingproject.org/studies” target=”_blank”>RebuildingProject.org</a>, over 35% of major auto lenders now have established policies for rebuilt title loans, up from just 18% five years ago.

So don’t let misconceptions or perceived obstacles steer you away from that deeply discounted car find just because it has a few dings or blemishes on its record. With some preparation and the guidance offered throughout this article, rebuilding your auto loan confidence can open up incredible possibilities and savings in the rebuilt/salvage vehicle market.

Whether through the national banks outlined earlier or a local credit union in your area, financing options absolutely exist for branded titles. We encourage you to get pre-approved, do your homework on vehicle candidates, and reach out to lenders to explore all the amazing potential deals awaiting you.

Know When to Walk Away

While the potential savings can be massive, it’s also crucial to know when to walk away from a questionable rebuilt or salvage titled vehicle. If you can’t get satisfactory information on the vehicle’s history, repairs seem shoddy, the seller is dodgy, or your gut tells you something is off – listen to those instincts. Not every branded title deal is going to be a hidden gem.

Explore Supplemental Coverage

Since most standard auto insurance policies limit or exclude coverage for branded title vehicles, you’ll likely need to purchase supplemental insurance through companies like Chill, Infinity, or Access. This can add some extra costs, but provides crucial protection for your investment in a rebuilt or salvage ride.

Join Branded Title Communities

From dedicated forums to Facebook groups, there are vibrant online communities of enthusiasts who buy, sell, and discuss branded titles autos regularly. Tapping into these groups’ knowledge can prove invaluable as you navigate the world of rebuilt and salvage deals for the first time.

With some additional elbow grease and due diligence, landing your next dream car or budget transportation at a steeply discounted price is definitely possible through the branded titles market. Numerous lenders are coming around and major auto buying resources like Edmunds now include filters specifically for rebuilt and salvage listings.

The stigma surrounding these vehicles is gradually fading as buyers realize that with the right research and reconditioning, a branded title auto can be just as safe and reliable as anything else on the roads. And who doesn’t love saving thousands in the process?

A Rebuilt Roadmap to Savings

Pursuing rebuilt and salvage titled vehicles requires being an informed, meticulous consumer – but the potential rewards make it extremely worthwhile for those willing to put in the work. We’ve covered a ton of ground throughout this guide, so let’s quickly revisit the key steps and tactics:

1. Understand branded title definitions and what makes a vehicle rebuilt versus salvage
2. Research lenders with policies for these unique auto loans like Chase, Wells Fargo, Navy Federal, and others
3. Get pre-approved to show you’re a serious buyer and lock in terms
4. Locate a well-documented vehicle with solid maintenance/repair records
5. Secure thorough inspections to verify the vehicle’s condition and value
6. Negotiate aggressively using data on similar clean-title models
7. Assemble all paperwork including titles, repair records, etc.
8. Consider supplemental insurance to properly cover your branded purchase
9. Seek guidance from online communities of fellow rebuilt/salvage enthusiasts
10. Walk away from any questionable deals that raise red flags

Follow those guidelines diligently, and scoring your perfect salvage diamond in the rough – along with an affordable financing solution – is certainly an achievable goal.

The market for branded titles is only continuing to grow as cost-conscious consumers chase value in a tight economy. By being an early, educated participant in this space, you’ll gain a competitive edge and access to unbeatable deals overlooked by less persistent buyers.

So rebuild your auto financing confidence today! With this roadmap and some elbow grease, the keys to your next deeply discounted, unique ride can soon be in your hands. The road to savings has never been so rewarding.

What to Expect After Purchasing a Rebuilt/Salvage Vehicle

The process doesn’t end once you’ve secured financing and purchased your rebuilt or salvage titled vehicle. There are some additional considerations to keep in mind:

Registration and Titling

Each state has its own rules regarding registering and titling rebuilt/salvage vehicles. You may need to provide proof of repairs, inspection documents, and other paperwork. Ensure you understand and follow your state’s regulations.

Future Trade-In/Sale

While you can certainly keep a well-maintained rebuilt or salvage vehicle for years, understand that your trade-in or resale value will likely be lower compared to a clean title. But the initial savings could still make it worthwhile.

Insurance Restrictions

Most standard auto policies exclude certain coverages for branded titles or charge higher premiums. You’ll need to explore supplemental policies as mentioned earlier and be transparent with insurers.

Repair Complexity

If your rebuilt/salvage vehicle needs repairs down the road, both the process and costs can be more complicated compared to a regular car due to potential parts scarcity or revised repair procedures.

Resale Red Tape

When it comes time to sell, you’ll need to provide a comprehensive documentation trail to prospective buyers detailing the vehicle’s repair history, inspections, and maintenance records.

None of these are necessarily dealbreakers, but going into branded title ownership with realistic expectations is important for long-term satisfaction.

Community Spotlights: Finding Rebuilt/Salvage Gems

Tapping into communities of enthusiastic rebuilt and salvage buyers can provide priceless insights. A few examples:

• Rebuilt Revs Forum – An engaged forum with model-specific advice and market data
• SalvageSavants Facebook Group – Over 25,000 members crowdsourcing branded title finds
• YouTube: AutoSaverGuy – A popular channel reviewing salvage rebuilt builds

These are just a few resources where veterans share tips, title-grade vehicles for sale, trusted repair shops, and more. Networking pays off when navigating this unique market.

On the Horizon: Breakthroughs for Branded Titles

While requiring some extra effort currently, the future looks bright for rebuilt and salvage titled cars gaining more mainstream acceptance:

• Major listing sites like AutoTempest now have salvage/rebuilt filters
• Several startups are emerging to streamline the inspection, financing, and sales process for these vehicles
• Public perception is shifting as spectacular salvage rebuilds go viral online
• State titling policies are slowly modernizing with clearer branding criteria

Craving more details? The RebuildingProject.org study cited earlier is an excellent deep-dive into the current landscape and future of this growing market segment.

As the saying goes, one person’s trash is another’s treasure – and that’s certainly proving true for savvy buyers and builders scooping up deeply discounted rebuilt and salvage vehicles. With some extra preparation, these branded titles can unlock incredible car finds and savings you may never have thought possible.

So don’t dismiss that dream performance vehicle, truck, or unique ride just because of its “scarlet letter” branded title status. The right research, inspections, financing, and mindset can turn those perceived lemons into automotive lemonade. Just take the steps outlined here, and you’ll be seamlessly upgrading your ride and rebuilding serious value in no time.