Rebuilt Title Car - Should You Buy It?

A "rebuilt” title can make a used car seem like a steal. But before you dive into a potential deal, it's important to understand the story behind that title.

 

What is a rebuilt title car?

It's a vehicle that was once so damaged that an insurance company deemed it a total loss, or "salvage”. However, it was repaired to meet safety standards and given a second chance on the road.

 

How does a car go from salvage to rebuilt?

Salvaged vehicles are usually sold in their current condition, often intended to be rebuilt or used for parts. 

If you're considering a salvaged vehicle, remember that a rebuilt title typically requires state inspection. These inspections are conducted to verify that all components, including seatbelts and the electrical system, are in perfect working order. Safety is the top priority, and every measure is taken to confirm the vehicle's safety.

While this doesn't guarantee a problem-free future, it offers a degree of assurance. Because unfortunately, some sellers engage in fraudulent practices like "title washing." They may transport a totaled vehicle to another state, repair it, and then apply for a clean title to conceal its history.

For added peace of mind, consider a pre-purchase inspection by a trusted mechanic.

 

Pros of rebuilt title cars

1. Low initial investment

One of the main benefits of purchasing a rebuilt title car is the lower initial cost. These vehicles are often priced significantly less than those with clean titles, primarily due to their history and associated risks. This reduced price point can make car ownership more accessible to budget-minded buyers.

2. Find some good deals

Not all rebuilt cars are the same. Some were only slightly damaged and have been fixed by experts. These cars can work just as well as regular cars, but often cost much less. You can often find great deals, sometimes even 20-40% off the price of a regular car.

3. Opportunity for upgrades

The savings from buying a rebuilt title car can be used to upgrade the vehicle. Consider adding features like a high-quality sound system, a sophisticated security system, or custom interior touches to personalize your car.

 

Cons of rebuilt title cars

1. Unforeseen problems

While a rebuilt title confirms that a vehicle has been repaired and inspected, it doesn't eliminate the possibility of hidden damage. There may be underlying issues like structural damage that weren't addressed during the repair process.

2. Uncertain performance in the future 

Even after thorough repairs, a rebuilt title car might not perform as well as it did before the damage. This can lead to unpredictable breakdowns and additional repair costs in the future.

3. Insurance challenges

Even if your rebuilt title car is in excellent condition, it may be difficult to find comprehensive insurance coverage. Some insurers may only offer limited coverage options, while others may completely decline to insure these vehicles.

4. Low resale value

Rebuilt title cars typically have a lower resale value compared to similar models with clean titles. This can make it more difficult to sell the car in the future as potential buyers may be hesitant to purchase a rebuilt title car, thereby limiting your return on investment.

 

Financing a rebuilt title car

Banks and credit unions aren't always keen on lending money for rebuilt title vehicles, seeing them as riskier investments. This can make it tough to get a loan for a rebuilt title car, especially at a decent interest rate.

If you're thinking about selling your rebuilt title car, you might also face some challenges. Dealerships may be less interested in buying these vehicles, so it could take longer to sell or you might get a lower offer.

It's always best to talk to a dealership or lender directly to see what your options are. They can give you the most accurate information about financing or selling a rebuilt title car.

 

Key questions to ask before buying a rebuilt vehicle:

Before you decide to purchase a rebuilt vehicle, it's crucial to ask the seller these important questions:

• What caused the initial damage to the vehicle?

• How severe was the damage?

• Who performed the repairs, and were they done by a qualified technician?

• Has the vehicle's frame been properly aligned?

• Has the car been inspected by a certified mechanic?

• Will my insurance company provide coverage for a rebuilt title vehicle?

 

Key factors to consider when buying a rebuilt title car:

When considering a rebuilt title car, it's important to conduct a thorough evaluation. Here are some key factors to consider:

• Vehicle history report: Obtain a comprehensive vehicle history report to understand the car's past, including the type and severity of the damage.

• Repair quality: Investigate the quality of repairs, ensuring they were performed by a reputable shop using original equipment manufacturer (OEM) parts.

• Hidden damage: Inspect for signs of underlying damage, such as rust or uneven body panels.

• Test drive: A test drive is essential to assess the car's performance, handling, and any unusual noises.

• Functional check: Verify that all systems, including air conditioning, heating, brakes, lights, and power windows, are working properly.

 

FAQs

1. Why are rebuilt title cars cheaper? 

Rebuilt title cars are often less expensive due to their history and potential risks.

2. Are they safe to drive? 

If repaired correctly and inspected, they can be safe.

3. Are they difficult to insure? 

Yes, insurance companies may charge higher premiums or offer limited coverage.

4. Can I finance a rebuilt title car? 

It may be more difficult, but some lenders specialize in these vehicles.

5. What should I look for when buying a rebuilt title car? 

Thoroughly inspect it, obtain a vehicle history report, negotiate a significant discount, and be aware of potential future challenges like lower resale value and higher insurance premiums.