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I found a sweet unicorn car but it has lemon tittle. The issue had been fixed by the mft under warranty. Is it possible to get an auto loan for it? Does anyone have experience with this?
Thanks Loquat! It turned out at most major banks and local CUs won't touch lemon \ buyback vehicles. Westlake Financial Services is what the dealers use for this type of high risk cars but the rate might be higher at 4% for branded title cars.
Unfortunately, there are quite a few lenders that won't touch branded title vehicles, whether that is a lemon, salvage, flood, theft, odometer discrepancy, etc. The ones that do lend money on branded title vehicles usually don't have rates that are competitive with prime lenders. Now, the vehicle can be a manufacturer buyback (would still qualify to be a lemon) but not have a branded title. In that instance regular auto lenders will still approve the loan as they would on any other vehicle in similar condition since the title is clean.
@Anonymous wrote:Unfortunately, there are quite a few lenders that won't touch branded title vehicles, whether that is a lemon, salvage, flood, theft, odometer discrepancy, etc. The ones that do lend money on branded title vehicles usually don't have rates that are competitive with prime lenders. Now, the vehicle can be a manufacturer buyback (would still qualify to be a lemon) but not have a branded title. In that instance regular auto lenders will still approve the loan as they would on any other vehicle in similar condition since the title is clean.
+1. When I was spinning paper in the box I hung a many of deals with Chase Custom, Acadia, TransSouth, AutoOne, Wells Fargo, MAC, and even CapOne on manufacturer buybacks.
I can't remember the exact issue Mitsubishi had with the Galant but our preowned manager picked up quite a few of them from Enterprise when they turned their fleet that were affected by manufacturer buyback and I hung those deals a many of times. It was the perfect "program" car.