What Is a Rebuilt Title?

Previously, a rebuilt titled car was classed as a salvage titled car. Being ‘rebuilt’ means the car has undergone refurbishment by an experienced team of mechanics and is allowed to be put back on the road. A car may have been involved in a crash or totaled in a way that insurers in the past have classed it as a “total loss” (where insurers believe repairs cost more than the car is worth).

To find out if a car has a rebuilt title you can look at the advertisement. When browsing for your next vehicle, owners should state if the car has undergone repair and is classed as rebuilt. 

Also, a vehicle history report will determine whether a car has been rebuilt. The likes of AutoCheck or CARFAX reports will inform you about this. Locating and inputting the VIN will allow you to carry out the report.

When looking at rebuilt title vehicles, it's wise to take extra precautions. Conducting a meticulous inspection, reviewing the vehicle history report, and only buying from reputable dealerships can help reduce the risks associated with rebuilt titles. The following steps can make you feel more confident in your next purchase.

Pros

• Cost savings: Rebuilt title cars are typically priced lower than similar vehicles with clean titles. This can make them attractive options for budget-conscious buyers.
• Repaired and inspected: These vehicles have undergone repairs and passed inspections to meet roadworthiness standards. They should be in reasonably good mechanical condition.
• Vehicle history: Reports like CARFAX provide insights into past repairs and issues.

Cons 

• Limited financing: It can be tough to find good financing options for rebuilt title vehicles. Many lenders see them as higher risk and are hesitant to provide loans. This makes getting favorable rates and terms challenging.
• Lower resale value: Due to uncertainties around their history, rebuilt title cars tend to have lower resale values than comparable clean title vehicles. Selling down the road may yield a lower return.
• Potential hidden issues: Even with repairs and inspections, there could still be lurking damage or problems not immediately visible. It's key to thoroughly inspect the car yourself or have a trusted mechanic look it over, to uncover any hidden defects that could lead to expenses or safety issues later on.

If you're thinking about buying a rebuilt title car, asking the right questions is key. Here are some important ones to raise:

1. What exactly caused the damage originally, and how extensive was it?
2. Who did the repair work, and can I see documentation like receipts? 
3. Has a certified mechanic checked over the car thoroughly, including inspecting the frame alignment?
4. How can I make sure that it's done properly?
5. What shape is the car in right now? 
6. Is it possible to have my own mechanic inspect the vehicle before I commit to buying it?
7. Is there any remaining financial obligation on the car that I'd be taking over?

Asking these types of questions can provide important details about the car's background, how well it was rebuilt, its current state, and any warning signs to watch out for. Being diligent upfront helps avoid ending up with an unsafe rebuilt title car with concerning unknowns in its past.

By following these steps, you can navigate the process of purchasing a car with a rebuilt title more confidently.

1. Check insurance coverage: Confirm if your insurance company covers rebuilt cars.
2. Exercise caution: Approach the purchase with thorough research and diligence.
3. Understand damage types: Assess the extent and nature of the previous damage.
4. Gather information: Obtain details on the vehicle's history and repairs from the seller and utilize vehicle history reports.
5. Get a professional inspection: Hire an independent mechanic for a comprehensive inspection.
6. Expect a lower price: Negotiate a price reflecting the rebuilt title status, also look out for tricks that car salesmen use.
7. Assess overall risk: Recognize the potential for future problems and consider extended warranties or savings. Even check out other states when buying your next car.

Remember to conduct thorough research, inspections, and negotiations to minimize risks and ensure a fair deal. Lots of deals can be found online, be sure to check if a car has a rebuilt title by asking the dealership or private seller if you are ever unsure. FINN offers a unique alternative to buying your next car, which is another option for those who deem rebuilt titled cars as too risky.

Cars with rebuilt titles can be insured, although the process is more challenging compared to vehicles with clean titles. Most insurance companies offer liability coverage for rebuilt title cars but are reluctant to provide full-coverage policies. Determining the accurate value and assessing damages can be difficult, making it harder to secure optional coverage like collision and comprehensive insurance.

Rebuilt salvage title cars are typically valued at 20% to 40% less than those with clean titles, resulting in lower insurance payouts for comprehensive or collision claims. Safety is another concern as reconditioned salvage title cars may have overlooked issues during the restoration process, posing risks on the road.

To obtain insurance for a rebuilt salvage title car:

• Shop around and compare quotes from multiple insurers, as some may not cover these cars even for liability insurance.
• Be prepared for potentially higher rates or surcharges of up to 20%.
• Consider reducing coverage to liability-only if the potential payout for damage is lower than the insurance cost.
• Evaluate if the insurance expenses outweigh the savings of purchasing a rebuilt salvage car, and consider a vehicle with a clean title if necessary.
• When obtaining insurance, be prepared to provide information such as a certified mechanic's statement, photos of the car, and the original repair estimate to prove the car's condition and repairs.

Finding an insurer that covers rebuilt salvage title cars may mean extra effort. Though this will ensure you have proper coverage and it is crucial for protecting your investment.