Your opinions on a Salvaged ISF out of Prestman Auto in Salt Lake?
05-01-15, 03:22 PM
#16
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I say skip and get a clean titled car from a dealer, even if you have to pay $5,000 more, it would be worth it!!! Try checking Cargurus.com.. That's where I found mine.. It even tells you how much above or under book value the car is. I got a 2012 with 38,000 miles for $39,999!!!! At a very reputable Lexus dealer.
Whether or not that is true, maybe they're just making stuff up.
05-01-15, 03:56 PM
#17
What lender?
A loan underwriter can do whatever he wants to approve the loan. But as a common practice, no one will write a loan for a salvaged vehicle. He'd get canned. It is an financial mistake, and the risk premium would need to be ridiculously high to entertain a lender. Maybe if you have an appreciating collector's car, there are boutique banks who will make an exception.
Although 50% down, would make it an interesting exception, it sounds like they would use a col-debt structure instead of a standard auto loan.
And is your State Farm, a small franchise branch? I don't believe State Farm would spend the time to work out the depr schedule for a salvaged vehicle. At one point of any salvaged vehicle's life, it is worth $0 on the books. Anything higher than that, is a market prem.
A loan underwriter can do whatever he wants to approve the loan. But as a common practice, no one will write a loan for a salvaged vehicle. He'd get canned. It is an financial mistake, and the risk premium would need to be ridiculously high to entertain a lender. Maybe if you have an appreciating collector's car, there are boutique banks who will make an exception.
Although 50% down, would make it an interesting exception, it sounds like they would use a col-debt structure instead of a standard auto loan.
And is your State Farm, a small franchise branch? I don't believe State Farm would spend the time to work out the depr schedule for a salvaged vehicle. At one point of any salvaged vehicle's life, it is worth $0 on the books. Anything higher than that, is a market prem.
05-01-15, 06:05 PM
#18
As for no sunroof, yes, that's legit. A very small percentage of ISFs were made with no sunroofs, and they're hard to find, but they're out there.
As for financing a vehicle with a salvage title, as Richy pointed out, some banks and credit unions will do it, but not for the full amount. That said, is it smart to finance a salvage title vehicle? No.
The only two circumstances that I'd consider a salvage titled car would be 1.) I'm buying a dedicated track vehicle, like an older S2000 or something like that, or 2.) I personally know the previous owner who had it when it was wrecked/stolen and I know where it was fixed. And it goes almost without saying, but they are going to be really hard to resell, so it should be a car you plan on keeping for a really long time.
I'd keep looking for a non-salvaged ISF. If you're prepared to spend +$30K, there will be all sorts of ISFs you can find out there. A well maintained 2008 with maybe 60-70K miles would be a much better deal.
As for financing a vehicle with a salvage title, as Richy pointed out, some banks and credit unions will do it, but not for the full amount. That said, is it smart to finance a salvage title vehicle? No.
The only two circumstances that I'd consider a salvage titled car would be 1.) I'm buying a dedicated track vehicle, like an older S2000 or something like that, or 2.) I personally know the previous owner who had it when it was wrecked/stolen and I know where it was fixed. And it goes almost without saying, but they are going to be really hard to resell, so it should be a car you plan on keeping for a really long time.
I'd keep looking for a non-salvaged ISF. If you're prepared to spend +$30K, there will be all sorts of ISFs you can find out there. A well maintained 2008 with maybe 60-70K miles would be a much better deal.
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