If you have bad credit and find a vehicle that has a rebuilt or salvage title, you should know that subprime lenders lenders that deal with bad credit probably arent going to finance it. Any car you want to buy with an auto loan typically needs to have a clean title. Salvage and rebuilt titles are title brands, and the vehicle you choose to finance usually cant have either.

Why Most Lenders Dont Finance Branded Title Vehicles

Salvage and rebuilt are just two of many types of branded titles, but theyre the most common. Salvage titles are issued when a car has extensive damage from an accident or natural disaster. Rebuilt titles sometimes called repaired or reconstructed are vehicles that were once listed as “salvage” that have been repaired.

In order to finance a car with a bad credit auto loan, the vehicle you choose usually must have a clean title. If theres a branded title of any kind attached to it, you cant finance it in most cases. This is because subprime lenders dont want you to drive an unreliable car, and want to make sure it doesnt break the bank due to unforeseen repairs.

When youre vehicle shopping, you may find used models that seem to run well and have a clean title, but its also possible they went through title washing. Title washing happens when a car with a branded title is taken to a state with lower title requirements and is issued a new un-branded title.

This is illegal, and isnt always easy to usda home loans apply online spot on the surface. However, you can avoid purchasing a vehicle thats been through title washing by having a certified mechanic thoroughly inspect it before you buy. They can look deeper into a car for potential issues.

Auto Credit Express Tip: Besides having a certified mechanic perform a pre-purchase inspection, its important you view its vehicle history report as well.