I’m looking to buy my first truck, and it has a rebuilt title. It’s priced at $24,400 with 53k miles. The only parts that were replaced are the front bumper, headlights, radiators, and hood. I was offered a 12.8% APR loan through USAA, which is nearly 3% higher than the loan I got from Navy Federal, but they don’t accept rebuilt titles. Would it be a bad idea to go with the 12.8% APR loan?
Is a bank not willing to give you a loan? A 12% rate seems crazy high.
That’s not the only thing that was replaced. It likely had frame damage that needed straightening. If that wasn’t done and only the cosmetic repairs were completed, you could be facing a lot of problems down the line. I’d advise against buying this. A regular truck from that era with 100-125k miles would be a better choice than a rebuilt title with low mileage. The resale value will be non-existent, as you’ll eventually need to persuade someone else to buy a rebuilt title with even more miles. Plus, insurance might be difficult to obtain or very costly. Keep searching; there are plenty of other trucks available.
In my opinion, paying $24k for a repaired wreck isn’t worth the slight savings. You can find a stock truck with comparable mileage for around $29k to $32k.
I recently bought a 2021 Silverado 2500HD with a 6.6L gas engine, custom crew cab, and 78k miles for $36k.
Personally I can never take a loan to purchase a luxurious product