What Does Rebuilt Title Mean?

What Does a Rebuilt Title Mean?

Cars with a salvage title aren't allowed to be on A rebuilt title refers to a car that at one time had a salvage title, which has been restored to be road-ready. A salvage title is one written off as a total loss by an insurance company, which will typically occur after a serious accident or flood or hail damage. If the cost of repairs is determined to be more than the total worth of the car at the time of the accident, then it will be a total loss.

Cars with a salvage title aren’t allowed to be on the road, but with some work, they can be drivable once again and receive the rebuilt title designation.

A car with a rebuilt title has been successfully restored to a safe, working order. This is a bit different than a clean title, which is only given to a car with no history of being totaled. A car must undergo a DMV inspection from New York State to be given a rebuilt title.

What is a rebuilt title for a car?  Will that make the car a “bad” car?

The short response to this inquiry is no. Vehicles with a rebuilt title are not terrible vehicles. Loads of vehicles with a rebuilt title are useful for multiple reasons. One explanation that a rebuilt title vehicle is a decent vehicle is its cost. Heaps of time, a vehicle with a rebuilt title is many dollars less expensive. Be that as it may, there are a few negatives. One impediment to a vehicle with a rebuilt title is the chance of struggling to sell it when you need another vehicle. A couple of autonomous vehicle arrangements won’t acknowledge salvage or rebuilt title vehicles for trade-ins. In the event that you discover a vendor that acknowledges those salvage and rebuilt title vehicles, they will give you an incentive for that vehicle. Consequently, you may be in an ideal situation for selling the vehicle secretly and telling the potential purchaser you have a rebuilt title or salvage title vehicle.


Rebuilt Title vs. Salvage Title

Rebuilt titles and salvage titles have some similarities, but each applies at a different stage of the reconstruction process.

Rebuilt Title Salvage Title Indicates a history of serious damage, depending on the state, usually ranging between 70% and 90% of the average resale value  Indicates a history of serious damage, depending on the state, usually ranging between 70% and 90% of the average resale value May specify the type of damage sustained, such as flood, hail, theft, or vandalism damage May specify the type of damage sustained, such as flood, hail, theft, or vandalism damage Previously had a salvage title, but was repaired Indicates if the vehicle is repairable or has only a market value for its parts Restored and passed a rebuilt vehicle inspection Not roadworthy and illegal to drive

How does a rebuilt title affect the value of a car?

A vehicle having a rebuilt title will likely have a lower market value because it underwent significant damage. Compared to similar models with clean titles, a car with a rebuilt title could have 20% to 40% less value, amounting to potentially thousands of dollars.

How does a rebuilt title affect a car’s value?

Cars with rebuilt titles do tend to have lower values than similar vehicles with clean titles would: Kelley Blue Book suggests deducting 20% to 40% of the value for a salvage-title car, which translates into lower asking prices on the sales floor once the vehicle has been rebuilt.[3] That said, lower value isn’t always a good thing down the line. Even clean-title cars depreciate rapidly, and if you’re hoping to resell the vehicle later, you could have a hard time recouping your costs. And speaking of those costs, even with the lower price tag, you could also face problems if you’re hoping to finance the car rather than pay for it in cash. “Even if an automobile has been fixed and passed state inspection, financing a car with a rebuilt title can be difficult,” says Matas Buzelis, the automotive expert at carVertical , a site that checks vehicle history. “Lenders have the right to refuse to finance a vehicle with a rebuilt title if they are concerned about the vehicle’s maintenance history or capacity to drive safely on the road.” Tip: If you don’t have a lot of cash on hand and are aiming for an auto loan, a rebuilt title might not be right for you, because it could be hard to find a lender who will take on a car with a rebuilt title.

What’s the difference between a rebuilt title and a salvage title?

The main contrast between the two terms is the state of the vehicle. ‘Salvage’ is the term utilized before fixes are made – in other words when the vehicle isn’t roadworthy. On the other hand, ‘rebuilt’ is the status you’ll discover on a vehicle’s title after vital fixes and reclamations have made the vehicle to be roadworthy once more. By and large, a vehicle gets a salvage title if that vehicle has supported a specific measure of harm and is proclaimed an absolute misfortune. Ordinarily, state authorities or vehicle insurance agencies will demonstrate the vehicle is an absolute misfortune. In multiple states, a vehicle can get a salvage title if the vehicle is taken. Check with your nearby state laws. Despite how the vehicle is managed, a salvage title vehicle can’t be driven or enrolled. A vehicle is given a salvage title, whenever it has been harmed in a mishap, crash, or any other occasion.

A couple of times when a salvage title is given, the vehicle is normally sold and afterward scratched. On different occasions, the vehicle might be rebuilt, contingent upon the harm. Things being what they are, is a salvage title equivalent to a junk title? Garbage and salvage titles are not the same. Another method of saying ” junk title” is “non-repairable title”. States hold non-repairable titles for vehicles that have a lot of harm. In addition to this, there is no measure of fixing that can report them as drivable or roadworthy. In this way, there are just two decisions an individual has. For somebody who has a junk title vehicle, the vehicle’s parts can be sold.

The individual with the salvage title can likewise decide to obliterate the vehicle. At the point when you have a junk title vehicle, that vehicle must be for parts and maybe offered to a junkyard. A salvage vehicle can be set as it were again with the assistance of an expert permit vehicle rebuilder. A rebuilt title is a vehicle that has a rebuilt title is a salvage title vehicle that has been fixed or fixed. Before there is a change made on the vehicle’s title from salvage to rebuilt, the vehicle should pass an extensive examination.


It’s anything but a ton for a totaled vehicle to get adequately operable to get a rebuilt title. At the point when a vehicle is announced an absolute misfortune by an insurance agency, it’s anything but a salvage title. These vehicles are considered risky to work on public roads and the salvage title warns potential purchasers that the vehicle is seriously harmed. Salvage vehicles are regularly sold “with no guarantees,” with the goal that whoever buys one will probably either attempt to rebuild it or use it for parts to fix different vehicles. In the event that it is the former, the new proprietor can apply for a rebuilt title from their state division of engine vehicles after fixes are finished.

Some deceitful vendors may endeavor to shroud the way that a vehicle had been totaled by shipping it to another state, fixing it, and applying for another, perfect title — an interaction known as “title washing.” To help battle that trickiness, the National Insurance Crime Bureau (NICB) offers free online assistance called VINCheck that allows planned buyers to check the vehicle ID number (VIN) to see whether an insurance agency has recently announced it’s anything but a complete misfortune.

Is a car with a rebuilt title safe to drive?

Perhaps the most important question of all is one that goes beyond finances: Is a car with a rebuilt title safe for driving? The official answer is yes —that’s why the vehicle’s title was able to be upgraded from salvage to rebuilt. But serious damage history does have the potential to lead to serious mechanical failures in the future. So, keeping the vehicle safe to drive could cost you—especially since your insurer is unlikely to provide extensive coverage.

Should You Avoid a Rebuilt Title Car?

In all fairness, salvage title cars and rebuilt title cars can be a little bit of a gamble, unless the rebuilding process was done right by a responsible and skilled mechanic. That said, there are, of course, a lot of people trying to take advantage of those looking to buy a rebuilt title car, since their limited budget doesn’t allow the acquisition of a brand new car or even a normal second-hand vehicle.

For that matter, the opinions are quite polarizing. Some say you should avoid a rebuilt title car at all cost, while some argue that it’s alright to buy such a vehicle provided you did your homework. And that’s the best advice we can give you, too. A rebuilt title car, although cheaper, might come with a lot of problems that didn’t catch the eye of whoever performed the state-sanctioned inspection. So it’s your responsibility to thoroughly check the car – we also advise you to ask a professional for help – and make sure your money won’t go to waste.

Take a Closer Look at Our Used Car Options

Our always-evolving pre-owned inventory is available for viewing on our website anytime. Of course, you can visit any of our locations to browse the latest used car options, too.

We make a promise to you with every pre-owned model. If you don’t absolutely fall in love with the car you’ve purchased, it can be exchanged for another used car within 30 days or 1,000 miles of driving. We want you to be happy with the car you’ve selected, and this is the best way to ensure that.

Getting insurance with a salvage or rebuilt title

Salvage title insurance may be hard to find since the vehicle, in many cases, isn’t safe to drive. However, rebuilt title insurance is easier to obtain, but certain stipulations will still apply.

Even after the necessary repairs are made, some insurers may only offer liability coverage. Many insurance carriers will not extend full coverage for salvage rebuilt vehicle because it is challenging to assess all of the pre-existing damage the vehicle has incurred. Collision and comprehensive coverage, which are both optional on standard auto policies, are unlikely to be offered with this type of title.

Since a rebuilt title signifies that the vehicle is no longer in its pristine, undamaged state, its value is much lower. Furthermore, because there may be undisclosed or unseen damage in a rebuilt vehicle, insurance companies will also view this type of title as being more likely to pose a risk on the road.

After you have found an insurance company to insure a car with a rebuilt title, you may be able to take more steps to receive more coverage. To prove that a vehicle with a rebuilt title is insurable, you may be able to provide more information to your insurer. This includes a statement from a professional mechanic indicating that your vehicle is in good working condition, pictures that show the its present condition and repair receipts, which is a given when you purchase a vehicle with a rebuilt title.

How to determine if a rebuilt title car is right for you!

If you’ve found a car with a branded title you’re seriously considering, pause for a moment; take a deep breath. There are a few questions to ask before committing to a salvage or rebuilt title car.

  • “Can I see the receipts?” If the current owner is the one who had the car repaired, request a detailed breakdown of the repairs to determine how thoroughly it was done and if quality parts were used by skilled technicians.
  • “Where were the repairs completed?” Ensure repairs were done at a reputable shop. If it was done by a backyard mechanic, you’re taking your chances.
  • “Have you insured it as a branded title?” You can get an idea if a rebuilt car is insurable if the current owner was able to insure it. If they haven’t, it should send up red flags.
  • “Was there frame or powertrain damage?” Two areas where people tend to cut corners on repairs are the expensive ones – the frame and the engine and transmission. If these were affected in the accident, be very careful with how you proceed.
  • “Have the repairs been estimated?” If it’s a salvage car you’re thinking of buying, determine if the seller has had repairs estimated already. If so, take into account the possibility of extra costs from hidden damage also.

If you received all the right answers to these questions, we still recommend asking a trusted mechanic to carry out an inspection to determine how well the car was repaired or restored. The last thing you want is to end up with a lemon car. And don’t forget to take the car on multiple test drives to make sure it handles well, runs smoothly, and doesn’t make any funny noises!

Learn More Today

Used cars with rebuilt titles can provide you with reliability for many years and miles to come.

If you would like to learn more about buying a car with a rebuilt title in Brook Park, Cleveland, or Parma, OH, contact our team at the Montrose Auto Outlet.