Three More Hurdles: Financing, Insurance and Resale
Salvage-title cars also raise issues when it comes to getting a car loan, getting car insurance and reselling the car.
1. You might not be able to get a car loan: Banks and credit unions shy away from car loans on salvage-title vehicles. They worry that cars that suffered enough damage to be declared a total loss might have weakened structural integrity and might not make it through another accident. Another concern is that, down the line, the cars might need a major repair that the borrower wouldn’t be able to pay for, leading to a higher risk of repossession. Banks only want to provide money for vehicles that will last the length of their loans, and salvage vehicles don’t have a great reputation for longevity. Banks are a little more forgiving when it comes to hail damage, which is often more of