I am selling my 97 F150, regular cab, swb, XLT, 4.2, 5spd, 156,000 miles. There is just not enough room for me, 2 car seats now, and the wife. I have it in the paper for @2795/ offer. I have had three people look at it today, and the last guy was really interested. He was worried about the loan from the bank on the rebuilt title. Has anyone ever heard of this, or any loan officers out there that can give me some kind of idea of loan value the bank would value this truck at, so I can bargain when the guy calls back Monday?
Thanks in advance,
Chad

 

I have bought several "salvaged" vehicles over the years to fix up and sell for a quick buck. Around here banks will NOT loan money for a "prior salvaged/rebuilt" title. That many not be the case where you are located, but I would guess it is a blanket policy all lenders have.

 

Call your bank and ask them. If a used car loan is unavailable for a salvaged vehicle you might suggest the potential buyer get a signature loan. Probably would cost a almost twice as much in interest, but you could maybe meet them half way on the difference in interest between the two loans.

Around here you can get a used car loan for 5.75% and a signature loan for about 10.5%. Almost twice as much.

BUT when looking at the actual $ amount:

2795 @ 5.75% for 24 months = 123.56/month ($170 in interest)
2795 @ 10.5% for 24 months = 129.62/month ($315 in interest)

A difference of $145 in interest. Meet them 1/2 way = $72.50.

Add another year to the loan and the payment drops to $84 and $90 per month but the difference in interest jumps to $220.

Of course you would want to confirm the numbers before commiting to half the interest. I used my credit union's on-line loan calculator to arrive at these numbers. And it does get a little tricky in the sense that a $72.50 lower purchase price at the higher interest rate does not yield a $72.50 savings in interest. However what it does do is reduce the TOTAL cost of the loan by $80.