If your vehicle got totaled in an accident, you would get a salvage title. However, after fixing it, getting a thorough inspection, and is then considered fit to be driven, the car will receive a rebuilt title. It is illegal to drive salvage title vehicles, but those with rebuilt titles are allowed since they have passed all safety inspections after being rebuilt. Today, you can easily find salvaged cars or rebuilt vehicles that have been restored and passed the safety checks, for instance, check out this website link.
If you decide to sell or purchase a rebuilt or a salvage title vehicle, make sure you know the differences between them.
Major Difference Between a Salvage Title and a Rebuilt Title
A salvage title or certificate replaces a clean title if the car has been in an accident or was destroyed by natural disasters like floods or hurricanes. We recommend you purchase these vehicles only if you are an experienced mechanic or can invest in a fixer-upper project. Refurbishing salvaged vehicles can take some time, not to mention so expensive that you could spend more than what the vehicle was worth originally.
On the other hand, a rebuilt title is for a car with a salvage title but has been refurbished and passed inspection. This means it can now be legally driven on roads. Some people think you automatically upgraded the title status after the repairs. This is not, however, the situation. Only after the state inspection is complete and it passes can you request a rebuilt title from the Department of Motor Vehicles.
Getting the Salvage or Rebuilt Title
Once an accident occurs and the insurance company declares a total loss, the vehicle owner can apply for the salvage total if they want to keep the car. In most scenarios, total loss occurs when the repairs range between 70% and 90%. A salvage title makes it legal to own the car in case you want to sell or repair it. It is the insurer who sells the salvage vehicle.
On the other hand, the rebuilt title is issued after the salvaged car has been repaired. Owners of the salvaged vehicles need to obtain and follow the state requirements; they need to show proof that the car has been refurbished. Receipts may be offered, and you must pass a DMV safety inspection. You get higher resale value for cars with rebuilt titles than you would for salvage title vehicles. The rebuilt title vehicles also have better insurance coverage.
Does the Rebuilt Title Affect the Value of a Car?
Yes, once your vehicle gets a rebuilt title, it will automatically lower its market value because of its significant damage. If you compare it with other models with clean titles, it would approximate between 20% to 40% value. This could be in thousands of dollars.
Is It a Good Idea to Buy a Car With a Rebuilt Title?
The answer depends on your situation. Sometimes, getting a car with a rebuilt title might be a good idea. You might be required to pass rigorous inspections to get the rebuilt title. The resale value can be reduced because it was previously labeled with a salvaged title, saving you some money.
Additionally, not everything that has undergone an inspection is secure over the long term; thus, there may be drawbacks. Getting insurance for the vehicle would also be challenging, and if you decide to sell it again, its worth will be quite low. You would get comparatively less than someone with a clean title. The initial sale of it may be rather challenging.
There are a few things to think about when buying a car with a rebuilt title:
- How was the vehicle damaged?
- What was the damage extent?
- Where was it repaired, and what was the repair process?
- Was it a professional or a certified mechanic who examined the vehicle?
- Can you find an insurance company that will cover the rebuilt title?
Aside from all the above, you must research well enough to ensure you know what you are getting into when getting a vehicle with a rebuilt title. Pay attention to the frame and alignment, as visible external wear might not be a good sign. Alignment is particularly important because being poorly aligned might result in problems in the future. Finally, you should remember to get a professional mechanic to look at the engine.
