Tips on Buying Cars: Rebuilt salvage financing?, salvage title, a1 credit

Question
Hi, I am looking to buy from a private owner one rebuilt salvage car that is currently registered, titled and passed all the technical inspections. The title is TX and is blue with the remarks that the mileage is actual and that is a rebuilt salvage.I have seen the car while wrecked and I know that it does fully worth $11k compared to $20k on KBB. My concern is if I can get financing for this type of car.Are there a lot of companies that offer loans for this type of title? If yes, which are these. Might they have higher rates than regular clean title cars?Thank you!

Answer
I think the most important factor here is your own personal credit rating.  If you have absolutely perfect, A1 credit, then almost any bank shouldn't have a problem in giving you a loan for this car.  Their feeling is, if you're smart enough to have established good credit, then you're smart enough to know what you're getting into.  If they do have any qualms, then they'll probably ask for a substantial (50%?) down payment.

Also, how the bank holds title could have a factor, and this varies from state to state.  Here in New York, the bank puts a lien on the title, and may ask for a copy for their records, but they don't hold the title- you do.  If you live in a state where the bank holds the title till you pay off the loan, then this salvage title might prove to be more of a problem.. But like I said first, I think your credit rating will be the deciding factor.