What is a Rebuilt Title?【Guide】

what does a rebuilt title meanI hope you will agree with me when I say:

 Every person in the market searching for another low-budget car often comes across one with a rebuilt title. 

No matter how frivolous you are, to some extent, we all look to bargain to get the bang for the buck. And shopping for a car is no exception. To put it simply, we want the highest quality for the lowest price. And when you have a tight budget, exploring options like a car with a rebuilt title pops in your head.

When it comes to rebuilt title cars, there is a lot of misunderstanding and confusion. And you might have numerous questions regarding this; what does a rebuilt title mean? Should I buy a car with a rebuilt title? Although these vehicles might be a good match for the right customer, it’s necessary to consider all factors before making a decision.

I have extensively researched and prepared a guide for you to help you see if it actually is the right fit for you to help you out. We will discuss all the nitty-gritty to aid you in taking advantage of some incredible deals. So let’s take a closer look.



What is a Rebuilt Title?

What is rebuilt title status? A rebuilt title status is given to a car that was initially labeled as salvage but was repaired and, more importantly, passed the inspection conducted by your state. The car could have been damaged due to extreme collision damage, fire, flood, or even some cases due to the manufacturer’s fault.

When a car is rebuilt, it is reconstructed and repaired to easily start to function again, more like repaired to factory condition. But there is no guarantee that the car is reliable and safe to use in the case of rebuilt title.

What is a Salvage Title?

While searching for the answers to “what is a rebuilt title on a car means,” you might have come across the word ‘Salvage Title.’ A salvage title is designated to a car when the repair cost outweighs the car’s market value or when the cost to fix the vehicle far exceeds the cost the insurance company will pay.

In this case, the car is considered totaled, and as a rule of thumb, any car given the salvage title is not safe to drive due to the danger it possesses. However, it doesn’t mean it is beyond repair if you are willing to spend money and the effort needed. Commonly, a car might have a salvage title due to accidents, floods, or in some cases, if it was stolen.

rebuilt title car value

Looking for tips to keep your car in top condition? Here is a guide you might want to read: The 8 Best Engine Cleaner Additives in 2021

Problems with Rebuilt Titles

Besides the reason that rebuilt title cars for sale were declared a total loss, there are other downsides of a rebuilt title you should consider.

For starters, insuring a rebuilt title is more difficult, and the process is tiring. For a rebuilt vehicle, most insurance providers will write a liability policy, but they will be hesitant to provide a full coverage policy.

Since it is a tough job to evaluate a rebuilt car, the insurer can’t determine whether the damages already existed or resulted from a particular incident after the car was insured by the user. This makes it even harder to cover the cost of the incidents.

how to price a rebuilt title car

Moreover, rebuilt title car value is also affected. If you are looking to buy a rebuilt title car, it might be challenging to price a rebuilt title car. This, in turn, affects the resale value of the car. Selling a rebuilt title car can prove to be one of the biggest challenges you might face due to fewer buyers and less rebuilt title value in the market.

Looking for related articles? Read our guide on: Why Does My Car Shake When I Accelerate? 

Is it Bad to Buy a Car with a Rebuilt Title?

This depends on your financial condition. While the title status of “Rebuilt; means the car has been repaired from a terrible condition, it could be a good deal. In some states, the vehicle must go through rigorous inspections and tests to get the rebuilt title. This makes certain that the car is safe to drive on roads,

On the other hand, since the vehicle had a salvage title previously, the rebuilt title car value would be under your budget. This could save you significantly.

However, there are drawbacks that you need to consider too before making your mind. Just because the vehicle passed the state inspection doesn’t guarantee that the car is safe for a long period of time. It might not survive for long, and there is the risk of losing your investment in a rebuilt title car.

In addition, the difficulty in insurance, selling, and the high maintenance cost that you might have to afford are some essential aspects to need to factor in. Should I buy a car with a rebuilt title? If your wallet doesn’t allow you to go for a clean title, the rebuilt title car might be ideal.

Things To Consider Before Buying a Rebuilt Car

Here are things you should consider before buying a rebuilt car:

Contact a Trusted Mechanic

Getting a certified mechanic who you can trust to inspect the vehicle on your behalf can be a smart move. Not all the damage is obvious in a rebuilt car, and you can completely miss warning signs. However, a certified mechanic can easily identify every minute detail.

Many sellers repair vehicles that are not worth repairing and sell them to make huge profits. Sellers can use a fresh coat of paint to hide the rust or other damaged parts. Corners can be cut, and various techniques can cover any defects. Precisely why getting a mechanic of your own can help you know if the vehicle is worth buying.

Get Information about the Car

what does it mean when a car title is rebuilt

This is a crucial step to revealing what the rebuilt car has gone through. Here is what you should look for:

  • Full discloser of the damage: Knowing what damage is done to the vehicle can help you make up your mind. The information can be obtained by Motor Vehicle Department. Remember, this can only be done through the state the car was registered in.
  • Complete repair that is done on the vehicle: Minor repairs such as dents are fine. However, look out for frame damage since they are irreparable. Knowing who did your repair can also help because their reputation can speak for them.
  •  The vehicle’s value: You can easily get a valuation of a vehicle on websites or by a local mechanic. Normally rebuilt title value is 20-40% less than a clean title car.
  • Look for any Aftermarket warranties: This can help save future costs in case of accidents. Bear in mind that all manufacturer’s warranties expire after a salvage title is declare on a car.

Know Why Was It Declared Totaled

There are several reasons why a car is given a salvage title. It could be due to an accident, robbery, or due to flood. While flood might sound less frightening, this is not the case.

Water can cause extreme damage to a car, especially to the frame of the car. Saltwater can damage the car’s electrical components and even corrode metal, which can cause tremendous problems in the long run. Moreover, it can leave a funky smell in the interior or even in the AC department.

Find an Insurance Company

Finding an insurance company that is able to cover insurance for a vehicle with a rebuilt title can be challenging. Since they can handle the risk, more stable and well-known auto insurance providers are more likely to cover insurance of a rebuilt title.problems with rebuilt titles

However, if you are looking to find an insurance company for full coverage, you might want to reconsider buying a rebuilt title car.

Do you want to sell it on a Later Date?

If you think you might end up selling the car in the future, buying a rebuilt car isn’t the ideal option. Not only the resale value is very low, but it is also tough to sell a rebuilt car.

Bottom Line

While buying a rebuilt car can help you save a significant sum of money, one shouldn’t take various financial and physical risks lightly.

For someone who is in dire need of a car and has a tight budget, a rebuilt car can be a good choice. However, following the right steps and ensuring you get the vehicle inspected by a certified mechanic can help you get the best deal possible. Always remember to research before making a final decision.

Here is a great video to help you understand the difference between Salvage and Rebuilt title:

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