A poorly aligned frame causes undue wear and strain to everything from the brakes and drivetrain to the tires and wheels. It can also fail to protect the occupants appropriately in the event of a severe crash or rollover. It is essential to know that necessary repairs to a rebuilt vehicle were performed correctly and by a reputable repair shop. Make sure the parts used are either from the manufacturer or are quality reproductions and that they have been installed securely and correctly.
Unauthorized repair shops can use substandard parts or put parts into the car until they receive the new title, then switch them back out for the damaged ones. Even worse, they might weld large sections of another car onto yours, making it unsafe in a crash. Because there is no foolproof way to know for sure just how well repairs have been done, always have any car with a rebuilt title thoroughly examined by a certified independent mechanic.
Even if the car is not unsafe to operate, skipping this step can result in expensive breakdowns and problems that cost you more to repair than the total original purchase price of the vehicle. If you're interested in buying a vehicle with such a title, it's also essential to get as much paperwork covering the vehicle's repairs as possible.
Look for detailed receipts for the labor and the parts to know that both were up to standard. If a vehicle has been previously damaged badly enough to warrant a salvage title, at first glance, it might seem not very smart to take a chance on it. Severe damage can compromise a car's structural integrity, so even if repairs were comprehensive enough to earn it a rebuilt title, it might not function the way the manufacturer intended it to or even fully comply with government standards.
However, it's not uncommon for a salvaged vehicle to never have had structural damage. If this is the case and if it's been repaired by a reputable shop using factory parts, it can be as safe as an original vehicle with a clean title. If resale value is important to you, a rebuilt car is not the right used vehicle for you. Because salvage cars with rebuilt titles sell for far less than those with clean titles, you can often snag a great deal on an acceptable vehicle if it was correctly rebuilt.
But remember, it can be difficult to sell such a car later and worth far less than the equivalent vehicle with a clean title. So unless you're planning to keep it for a long time, you may not want a car with a rebuilt title. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Our goal is to give you the best advice to help you make smart personal finance decisions.
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All insurance products are governed by the terms in the applicable insurance policy, and all related decisions such as approval for coverage, premiums, commissions and fees and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. When shopping for a used vehicle, you might come across one with a rebuilt or salvage title. This normally happens when an insurance company writes off the vehicle as unrepairable.
Some of the most common reasons why a car might have a salvage title are accidents, weather especially flood damage or the car was stolen. Vehicles given a salvage title may not be safe to drive due to the danger posed because of its extensive damage. When a car with a salvage title has been repaired, it can receive a rebuilt title. This notifies the buyer of the previous history of the vehicle.
To receive a rebuilt title, the vehicle must pass a series of tests to ensure it is safe to drive in some states. After being presented with a salvage title, you cannot drive, sell or register the vehicle until it has been repaired. At this point, the salvage vehicle is typically sold by the insurer to a third party interested in repairing the vehicle or breaking it down for parts.
By giving the repaired vehicle a rebuilt title, this provides the buyer more information about its history. A vehicle having a rebuilt title will likely have a lower market value because it underwent significant damage. This depends on your situation. On the one hand, it could be a good deal to buy a car with this title. In some states, vehicles must pass rigorous inspections to receive a rebuilt title.
And because the vehicle had a salvage title at one point, the resale value could be much less. This means you could save significantly. That said, there could be some drawbacks. Just because it passed state inspection does not mean the car is guaranteed to be safe for the long haul. Additionally, it could be difficult to get insurance coverage for your vehicle. And circling back to value, while you might get a good deal to buy it, if you plan to sell it at some point, you probably will not get nearly as much as you would with a vehicle with a clean title.
A vehicle with a rebuilt title may even be harder to sell compared to one with a clean title. Most used vehicles come with a "clean" title that certifies the new owner is getting a vehicle that's in good working order.
However, if a used vehicle had ever been involved in a major accident, gone through a manufacturer buyback thanks to a successful lemon law claim, or had its odometer rolled back, it could come with a rebuilt title. A rebuilt title generally means that at some point the car was so badly damaged it was declared an actual total loss —or "totaled"—by an auto insurance company.
If that same vehicle subsequently goes on sale with a rebuilt title, someone has made the effort to repair or rebuild it. Depending on local laws, the repaired vehicle would likely have to undergo an inspection before it can be driven on public roads. It takes a lot for a totaled car to become operable enough to receive a rebuilt title. When a car is declared a total loss by an insurance company, it gets a salvage title. These vehicles are deemed unsafe to operate on public roads and the salvage title helps warn potential buyers that the vehicle is severely damaged.
Salvage vehicles are typically sold "as is," with the intention that whoever purchases one will likely either try to rebuild it or use it for parts to repair other vehicles. If it's the former, the new owner can apply for a rebuilt title from their state department of motor vehicles after repairs are completed.
Some unscrupulous sellers may attempt to hide the fact that a car had been totaled by transporting it to another state, repairing it, and applying for a new, clean title—a process known as "title washing. Despite their checkered past, it isn't always a bad idea to purchase a vehicle with a rebuilt title.
Here are some pros and cons, starting with the pros:. Buying a car with a rebuilt title is a gamble. If you're willing to take the risk—and all goes well—it could turn out to be a rare bargain. Otherwise, it could end up costing you more than simply buying a car with a clean title in the first place. Credit Union National Association. Insurance Information Institute. Car Insurance. Career Advice. Your Privacy Rights.
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