What is a rebuilt title on a car?

The sale of used vehicles is going through a good time in the United States. This includes cars with problematic history that are cheaper than others, such as salvage cars. If you want to know what a rebuilt title is, we will tell you.

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What is a rebuilt title on a car?

Most vehicles on the market include a clean title that lets the future owner know that he or she is getting a vehicle in good condition. However, when a car or truck has been repurchased by the manufacturer, has its odometer rolled back or suffers a major accident, it may have a rebuilt title.

This rebuilt title implies that at some point the vehicle was declared a 'total loss' by a car insurance. If the transport in question then goes on sale with a rebuilt title, it means that someone repaired it.

Depending on local regulations, these vehicles should be subject to an overhaul before going on the road. Looked at another way, this means that the vehicle has had extensive damage and the repair should cover 70-90% of its value.

Once the insurance company has listed it as a total loss, the appropriate Department of Motor Vehicles (DMV) changes the title from clean to salvage or junk. After this designation, the conveyance cannot be sold or registered until restoration occurs.

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Prior to repair, the insurance company usually sells the 'salvaged' vehicle to a third party who seeks to reassemble it or offer it for parts. If the former happens, the car has to meet certain safety requirements before the DMV will give it a rebuilt title, which better informs the potential buyer.

Advantages and disadvantages of buying a rebuilt title car

Like any remanufactured product, there are several pros and cons that you should evaluate when purchasing a rebuilt title car, truck or van.

Disadvantages

• It is more difficult to resell. It may happen that you decide to change your car or need a more updated model. The problem with rebuilt titles is that they receive bad publicity because of their past.
• It is complicated to insure it. It doesn't matter if the car is aesthetically and technically flawless, insurers avoid these vehicles like the plague. Often, the insurance company may refuse to sell you a comprehensive or collision policy, but may agree to give you the third party liability policy, which is mandatory.
• The history could lead to future problems. Since motor vehicles are complex machines, they can fail at any time. Some mechanical malfunctions that seem resolved could cost you hundreds or thousands of dollars. This can happen if the car has been in a flood, the corrosive effects of which could show up in the long run.

Advantages

• It works out cheaper for you. Because of the circumstances surrounding the vehicle's history, its ultimate value will be cheaper than one with a clean title. In practice, this can represent 20% to 40% less than the original price. This is perhaps the biggest advantage of opting for this option.
• The damage may not be as severe. It must be understood that the total loss rating happens for a variety of reasons. It may be that the car is structurally sound, but the insurer did not want to pay for expensive parts that were needed. But if the bodywork is bent or has welds, you may not want to take the risk. We advise you to ask why it was titled as rebuilt, what was done to it, and check the VIN on the NICB website. If you are not a car expert, we suggest you take it to your trusted mechanic to have it checked.

Should I buy a car with a rebuilt title?

Deciding on a vehicle with a rebuilt title is not unreasonable. A lot has to do with your financial situation and the fact that the car, van or mobile home has no details that could impair its operation while you have it. We remind you that in some states the inspection is quite rigorous in order to approve it.

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Likewise, the fact that it has passed the review of the local experts does not imply that it will not fail in the future. Here also comes into play the pros/cons that include this decision and that will guide you on how to proceed. If you think it is a good deal and your future finances will compensate for the risk, it may be a good bet.

But first, think about the following:

• Extent of the damage.
• How the damage occurred.
• If your insurer will give you coverage.
• Repair procedure and who did it.
• If a certified or professional mechanic checked the vehicle.

Getting a car with a rebuilt title can be a bargain, but it all depends on the research you do.

Español: ¿Qué es un título rebuilt o reconstruido en un auto?