Should You Buy a Car with a Rebuilt Title? What You Need to Know
Photo by Florian Olivo on Unsplash
The title is one of the more important things you need to look at if you’re in the market for a used car. This piece of paperwork can tell you a lot about a vehicle’s history and condition, work you may need to perform on it, even how much insurance is going to cost.
Many people will tell you to avoid buying a vehicle with a “salvage” or “rebuilt” title, as it means the car may have been through the ringer a time or two, and might not be in the best condition. And while this is true for some vehicles, a rebuilt title does not a lemon make, and there are plenty of cars with this rubber stamp on their paperwork that are perfectly safe and driveable.
So if you’re wondering, should you buy a car with a rebuilt title? The answer will ultimately be up to you.
What is a Rebuilt Title?
If a car is involved in an accident, natural disaster, or is missing parts after a theft, the insurance company may deem it “a total loss,” and that car will receive a salvage title. In practical terms, this means that the cost of repairs is equal to between 70 and 90% of the vehicle’s total value.
In many cases, this means that you will no longer be able to drive your vehicle – safely or at all - and it will have to undergo extensive repairs in order to be road safe.
But the cost of repairs can also involve cosmetic damage including things like chipped paint or a dented fender - problems which may hurt the bluebook value of a used vehicle, but don’t compromise the actual safety or driveability of the car. If you’re considering buying a car with a salvage title, you should always ask for a detailed vehicle history prior to purchasing.
If then a vehicle with a salvage title gets fixed back up, it can receive a “rebuilt” title, indicating that the damages from the totalling event have now been repaired. In order to change from a salvage to a rebuilt title, the repaired vehicle will have to undergo a series of tests and inspections to prove that the car is once again in good working order.
So should you buy a car with a rebuilt title? You can certainly do so safely. But like any used vehicle, if you’re buying a rebuilt car, it’s always a good idea to take it to the mechanic for a thorough checkup before you sign any paperwork.
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Should You Buy a Car with a Rebuilt Title? Pros and Cons
Here are a few of the perks and pitfalls that come with buying a car with a rebuilt title.
Pro - Cost. A car with a rebuilt title may sell for as much as 50% less than a clean-titled vehicle of the same make and model.
Because rebuilt and salvage title vehicles come with their own set of challenges and risks they are generally less desirable to the average buyer, and sellers usually offer them at a bargain.
Con - Insurance. Many insurance companies won’t cover cars with rebuilt titles. Or if they do, they won’t offer comprehensive coverage and instead will only give drivers the bare minimum.
This is one of the larger hardships of owning a rebuilt vehicle, and you should talk to your insurance adjuster about their specific policy before buying.
Pro - Peace of mind. As we said earlier, rebuilt vehicles usually have to pass state inspections before they receive their rebuilt title.
This means that a qualified technician has already examined the rebuilt vehicle and given it their seal of approval.
Con - Selling your car. A rebuilt title does no favors for your vehicle’s resale value, and it can be difficult to even find a buyer who wants to purchase your car.
To make it more desirable, you should make sure you are taking very good care of your rebuilt vehicle once it comes into your possession, and you should keep a detailed record of repairs and upkeep to prove that the car is safe and well-maintained.
Pro - Plenty of parts. If you’re the crafty type who likes refurbishing old vehicles, a rebuilt or salvage vehicle can be a cheap source of parts to support a project vehicle.
Con - Scams happen. Unfortunately, some disreputable mechanics and car owners have found ways to sneak around rebuilt title laws and regulations, and you can’t always be sure that the paperwork is telling the truth.
Whether through title washing - where a salvage vehicle appears to have a clean title - or faked or poorly-done repairs, some title scams have ended in tragedy, costing unwary drivers their lives. If you are going to buy a rebuilt vehicle, you have to be very, very careful. We’ll show you how in the next section.
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How to Safely Buy a Car with a Rebuilt Title
Should you buy a car with a rebuilt title? Only if everything checks out. Here are some steps you can take to make sure you’re getting what you bargained for in your rebuilt vehicle.
- Get the scoop. Ask the seller about the vehicle’s history, why it received a salvage title, what repairs were made, and if they have the receipts to prove it. If the seller can’t tell you, or won’t show you the paperwork, say “no thank you” and walk away.
- Get a second opinion. Even if the seller has all the paperwork in order, take the vehicle to a mechanic you trust for a thorough inspection.
It’s also possible for you to find a garage in your area that specializes in checking out salvage or rebuilt vehicles. They will be able to either give you the go-ahead, or let you know if something’s amiss. 3. Check the DMV. If the seller isn’t being forthcoming or doesn’t have the paperwork you want, you can always check out the vehicle’s history through the DMV. All you need is the vehicle identification number, and access to the internet. 4. Know your limits. Some rebuilt vehicles are absolutely worth buying and should be no more of a headache than their clean-titled cousins. Other rebuilt vehicles can be a total pain, and must be avoided.
Look out for rebuilt cars that have a history with fire, floods, or electrical damage – these things will likely never be repaired. On the other hand, vandalism or suspension damage are easily repaired.
THE BEST USED LUXURY CARS ON THE MARKET
Buying a used or CPO luxury car is one of the smartest buys you can make - you can get a lot of car for not much money. You can pick up a three-year-old luxury car for about half of what you’d pay new. Check out this list of the best used luxury cars on the market to find the best deals.
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