Are you shopping for a used car but struggling with financing options? You might consider a vehicle with a rebuilt title.
A rebuilt title is given to a car that has been in a major accident. The vehicle has been declared a total loss by an insurance company, and then it has been repaired and put back on the road.
What does a rebuilt title mean? Is it unsafe? Is it even worth buying?
The answer is yes – as long as you do your research. And many people choose to buy them because they are often cheaper than other cars. Get a Carfax report on the car and have it inspected by a mechanic before you buy it.
Keep reading to learn the ins and outs of purchasing a vehicle with a rebuilt title.
What Does a Rebuilt Title Mean?
A rebuilt title is a car that has been salvaged and then rebuilt. The vehicle may have been in a flood, a fire, or other types of accident. When it’s rebuilt, the title is changed from “salvage” to “rebuilt.”
It’s important to note that a rebuilt title doesn’t mean that the car is in perfect condition. It just means that it’s been restored to some degree and is drivable.
What Is the Difference Between a Rebuilt Title and a Salvage Title?
A rebuilt title is a title issued to a vehicle that has been repaired and restored to its pre-loss condition. The rebuilder must submit evidence of the repair, including receipts and photos, to the state motor vehicle department to receive the rebuilt title.
A salvage title is issued to a vehicle declared a total loss by an insurance company. This can happen for various reasons, such as damage from a collision, fire, or flood. When a vehicle with a salvage title is repaired and registered for use in the state, it must be titled with a salvage designation.
Can You Turn a Rebuilt Title Into a Clean Title?
There is no way to turn a rebuilt title into a clean title. Once it’s been declared a total loss, that’s it. You can turn a salvage title into a rebuilt title, but that’s as far as it goes.
How Much Damage Is Enough for Insurers to Declare a Vehicle a Total Loss?
In general, insurers declare a vehicle a total loss when the cost of repairs exceeds a certain percentage of the car’s value. For instance, most insurers will declare a car a total loss if repairs would cost more than 75% of the car’s value.
This is because it’s generally not economically feasible to repair a car that’s been damaged beyond a certain point. However, the percentage at which an insurer declares a vehicle a total loss can vary by state.
Are Vehicles With Rebuilt Titles Safe?
That heavily depends on the extent of the damage to the vehicle. And it depends on whether or not the repairs were made correctly and with quality parts. Some of the things you’ll want to keep in mind include the age of the vehicle, the extent of damage it sustained, and who performed the repairs.
Generally speaking, vehicles with rebuilt titles can be just as safe as any other used car on the road. Cars with rebuilt titles simply mean that they’ve been through some type of significant repair process – which isn’t necessarily a bad thing.
Before making a purchase, be sure to have a qualified mechanic inspect the vehicle to ensure that all repairs were made properly and that there are no potential safety concerns.
Are Rebuilt Titles Worth Buying?
There are a lot of factors to consider when deciding whether or not to buy a rebuilt title. You’ll want to consider the make and model of the car, the severity of the damage, and the cost of purchasing and repairing a rebuilt title.
One thing to keep in mind is that a rebuilt title means the car was once salvaged. A vehicle is marked as “salvage” when declared totaled by an insurance company due to extensive damage.
The term “rebuilt” indicates that the car has been repaired and is now driveable. But it can be difficult to tell if underlying issues have been fixed correctly or at all.
On the bright side, vehicles with rebuilt titles are usually much cheaper than purchasing a brand-new car or even one with a clean title. In addition, because the vehicle has already sustained major damage, you as the buyer
In some cases, buying a rebuilt title may be a good option if the cost of repairing the car is too high or if there are no other affordable options available.
Do your research before making any decisions and consult with an experienced mechanic or auto dealer.
How Much Does a Rebuilt Title Devalue a Vehicle?
A rebuilt title devalues a vehicle by an average of 20%. However, this range can be deceiving as the percentage increase or decrease in value is largely dependent on the quality of the repair job and associated parts.
The region is another important factor, as vehicles with rebuilt titles are often stigmatized in certain areas. Ultimately, it would be best to consult with an automotive specialist in your area to get a more accurate estimate.
If I Purchase a Rebuilt Vehicle, Will I Have Trouble Reselling It Later?
It depends on the quality of the rebuild. If the rebuild was done poorly, then you will have trouble reselling it. However, if the rebuild was done well, then you should not have any trouble reselling it.
Again, when considering whether or not to purchase a rebuilt vehicle, it is important to do your research to ensure that you are buying a vehicle that has been rebuilt well. Many reputable rebuilders do quality work, so if you find a good one, you should not have any trouble reselling the vehicle later on.
Where Can You Purchase a Vehicle With a Rebuilt Title?
A few places you could look at are your state’s DMV or an online car auction site like GoAutoAuction.com. With some research, you may find some local auctions that sell vehicles with rebuilt titles.
If you decide to purchase a car with a rebuilt title, be sure to get a thorough inspection from a qualified mechanic. They will be able to tell you if the vehicle has been repaired correctly and if any underlying issues need to be fixed.
Purchasing a Vehicle With a Rebuilt Title
You should ask the seller for documentation detailing the repairs that have been made to the vehicle. You will need that documentation when you apply for a rebuilt title.
Ask questions about the vehicle’s history before purchasing. Consider asking the following questions:
- When was the vehicle declared totaled?
- How extensive was the damage?
- What repairs were made?
- Who performed the repairs?
- When were the repairs made?
- What parts were used in the repairs?
Once you have all the information you need, you can decide whether or not to purchase the vehicle. If you do decide to purchase a car with a rebuilt title, be sure to get it inspected by a qualified mechanic before finalizing the sale
If you’re satisfied with the answers to those questions, then you can move forward with the purchase. Be sure to get a bill of sale and transfer the title into your name.
In addition, you’ll need to get an inspection from a qualified mechanic. They will be able to tell you if the vehicle has been repaired correctly and if any underlying issues need to be fixed.
If everything checks out, then you can move forward with purchasing the vehicle. Just be sure to get insurance coverage if anything happens to go wrong.
Can I Finance a Rebuilt Vehicle?
Yes, you can finance a rebuilt vehicle. While the financing options may be different than for a standard vehicle, there are a number of lenders who specialize in loans for rebuilt vehicles.
The process is typically the same as applying for any other type of auto loan, and you can shop around to compare rates and terms before committing to a loan.
When applying for financing, be sure to mention that the vehicle is rebuilt. The lender will likely have additional questions about the history of the vehicle and what repairs have been made.
They may also require a higher down payment or interest rate, so it’s important to shop around and compare offers before choosing a loan.
In general, you are more likely to get financing for a vehicle with cosmetic damage than one with significant structural damage. Cosmetic damage includes things like dents, scratches, and cracked windows. Structural damage is more serious and includes things like a bent frame or a totaled engine.
If you’re looking to finance a rebuilt vehicle, your best bet is to shop around and compare offers from a variety of lenders. Be sure to mention that the vehicle is rebuilt so they can give you an accurate quote.
How to Get a Rebuilt Title
If you buy a car with a salvage title and repair it, you’ll need to get a new title from the DMV. The process and requirements vary by state, so you’ll need to check with your local DMV.
You’ll likely need to submit the following documents:
- A Completed Application for a Rebuilt Title
- The Salvage Certificate or Rebuilder’s Certificate
- A Bill of Sale
- Proof of Identity
- The Title Fee
Once your application has been processed, you will need to locate a salvage yard or vehicle dismantler to obtain parts for your vehicle. You will then need to assemble your vehicle according to the specifications outlined in the rebuilt title application.
You may also need to have the car inspected by the DMV or a licensed inspection station. After passing inspection, you will be issued a rebuilt title for your vehicle.
Insuring a Car With a Rebuilt Title
One of the downsides of purchasing a vehicle with a rebuilt title is finding decent insurance. Many insurance companies will refuse to insure a car with a rebuilt title. And if you’re able to find coverage, it’s likely that you’ll pay much higher rates than someone with a clean title.
However, a few insurance companies specialize in insuring rebuilt cars. Be sure to shop around and compare rates before purchasing a policy.
You should also ensure that the insurer you choose offers adequate coverage if your car is damaged or totaled in an accident.
Can I Get Full Coverage on a Rebuilt Title?
The answer to this question depends on the insurer you use and the state you live in. Some insurers will provide full coverage for a rebuilt title, while others will only provide limited coverage. And in some states, rebuilt titles are not recognized at all.
So it’s important to check with your insurer and find out what their policy is before you purchase a vehicle with a rebuilt title.
What You Need to Know About Title Disclosure
If you’re purchasing a rebuilt vehicle, then title disclosure protects you from buying a lemon. The seller must disclose whether the vehicle has a salvage or rebuilt title in most states.
However, not all sellers are honest about the history of their vehicles. If you’re buying a used car, it’s always good to get a vehicle history report. It will tell you if the vehicle has ever been declared a total loss.
The Bottom Line
What does a rebuilt title mean for your future purchases now that you know a bit more about it? If you’re considering purchasing a rebuilt vehicle, be sure to get a vehicle history report and shop around for insurance. You may have difficulty securing financing from a traditional lender, but there are options available.
While buying a car with a rebuilt title can be a gamble, it can also be a great way to save money on your next vehicle purchase. Just be sure to do your research before making a decision. Please check out our website for finance options, where you can easily apply at CarsFast within minutes.