Your opinions on a Salvaged ISF out of Prestman Auto in Salt Lake?
#16
Pole Position
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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.
Yea they told me that it was special ordered without the sunroof and the owner had to pay cash because they didn't want the deal to fall through with financing and have an F on the lot without a sunroof Whether or not that is true, maybe they're just making stuff up.
#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.
#18
Moderator
iTrader: (3)
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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