When roaming around the used car market, you must have come across the term “rebuilt title.” So, what does a car with rebuilt title mean?
Rebuilt vs. salvage title
It simply means that there was extensive damage to the vehicle that it was useless to repair the car. A car is declared “totaled” by insurance companies when they are damaged from 50% to 80%. Now the car is issued a salvage title, and once it’s repaired, it gains a rebuilt title.
According to the Texas Department of Motor Vehicles, “A rebuilt vehicle, also known as “prior salvage,” means it was branded “salvage” but was rebuilt to road worthiness. A rebuilt vehicle must pass safety and anti-theft inspections, and other state-mandated standards in order to return to the road.”
If you’re thinking of buying a car with a rebuilt title, note that there are advantages and disadvantages involved.
Are Rebuilt titles bad?
Here are a few things to know before you decide to buy a car with a rebuilt title.
- You may save a few hundred dollars buying a reconstructed car
- The rebuilt car is good to run on the road
- You may find it hard to sell a rebuilt title vehicle
- Before you buy one, ensure your insurance company covers the rebuilt cars
You may save a few hundred dollars buying a reconstructed car
When buying vehicles with a rebuilt title, you’re likely to pay less as compared to the cost of a new or reconditioned car. However, a low initial payment doesn’t mean that the overall cost of the car will be less.
If you buy a car without a thorough inspection, you may mistakenly buy one that requires extensive fixes. Unfortunately, this means you may end up paying more from your pockets.
The rebuilt car is good to run on the road
Some individuals are very cautious about buying a car that was salvaged but later rebuilt. For a car to upgrade from salvage title to rebuilt title, it has to pass certain tests and inspections. And it is only promoted when it successfully passes those parameters. If the car is giving a good run on the road, buying a car with a rebuilt title can save you a lot of money.
The exact amount you can save depends on the type of vehicle, the extent of damage, and the quality of repairs.
Always take expert’s opinion
The majority of salvaged cars need to be inspection approved to get a rebuilt title. Let your mechanic inspect the car before you decide to buy it. Most consumers only notice the car’s exterior and think of it as the best deal, ignoring the fact that it needs hefty repairs.
Keep in mind that the car with a rebuilt title was once considerably damaged that wasn’t fit enough to run. Ensure the mechanic is on your side of the court and thoroughly examines the car before giving you the green light. People can fix the damage and then take off the new body parts after getting the rebuilt title.
Ask for the documents
If the car you’re planning to buy is rebuilt, there must be proper documents present to prove the car was repaired. But if the seller is refusing to provide the documentation, PLEASE RUN! If the person is selling a genuine rebuilt vehicle, there must be no issue in providing the paperwork.
You may find it hard to sell a rebuilt vehicle
If you have bought a vehicle with a rebuilt title, you’ll have to take too much care of it. This is because restored cars can surprise you with sudden issues and can be hard to resell. And even if you’re able to sell your renovated car successfully, you may not make a good profit.
Ensure your insurance company covers the rebuilt cars
Many car insurers feel reluctant to insure a rebuilt car. The ones that insure them won’t provide full coverage. This happens because it’s not easy to find the actual value of a reconstructed car.
If your insurance company isn’t offering insurance for your car with a rebuilt title, you can explore many other options. Look around the town for other insurance carriers that will provide insurance to restored vehicles.
Ask these questions before you plan to buy a vehicle with a rebuilt title
- How was the car damaged?
- How substantial was the damage?
- How was the car fixed, and who did the reconstruction?
- Does the car have an adequately aligned frame?
- Is the vehicle inspected by a renowned mechanic?
- Will the car with rebuilt title covered by your insurance provider?
If you are satisfied with the answers to these questions, buying cars with rebuilt titles can be worth it.