Rebuilt Title vs. Salvage Title: What's the Difference?

In addition to rebuilt and salvage titles, there are other types of car titles that you may come across. 

• Clean Title - A clean title refers to a vehicle that has not been significantly damaged, written off, or undergone major repairs. It indicates that the vehicle has not been involved in any major accidents, floods, or other significant incidents. Clean title vehicles typically have a higher market value and are considered to be in better condition.
• Clear Title - A clear title is similar to a clean title. It means that the vehicle is free from any liens or financial obligations. A clear title indicates that there are no outstanding loans, lease agreements, or other claims on the vehicle.
• Lemon Title - A lemon title is issued for a vehicle that has a history of recurring mechanical or operational problems. Lemon laws vary by state, but typically if a vehicle experiences significant defects or malfunctions within a certain period after purchase (usually within the first year or a specific mileage), you may be entitled to a replacement or refund. The lemon title warns potential buyers about the vehicle's history of problems.
• Flood Title - A flood title is given to a vehicle that has been damaged by flooding. These vehicles have typically been exposed to water deep enough to cause significant damage to the engine, electrical systems, or other components. It's crucial to be cautious when considering a vehicle with a flood title, as water damage can lead to long-term issues with corrosion, mold, and electrical malfunctions.
• Reconstructed Title - A reconstructed title is similar to a rebuilt title and is used in some states. It indicates that a vehicle has been significantly repaired or rebuilt after being damaged. The specific criteria for issuing a reconstructed title can vary by state.
• Export Title - An export title is issued for vehicles that are intended for export to another country. These vehicles may not meet the specific requirements for road use in the 

What you need to know about rebuilt titles 

Cars with rebuilt titles are typically cheaper as they have a history of requiring repairs. While the repairs have been made and the vehicle has been deemed safe and driveable, there may be underlying issues lingering you may be unaware of. 

If you are considering purchasing a car with a rebuilt title, make sure you obtain a detailed history of the vehicle, including the nature and extent of the damage. It's crucial to understand the specific reasons why the vehicle was declared salvaged and what repairs were made.

Find out if the rebuilt title vehicle has undergone a thorough inspection by a trusted authority or the Department of Motor Vehicles in your area. The inspection process is designed to ensure that the vehicle meets safety and roadworthiness standards after being rebuilt. You may also want to consider bringing the vehicle to your own trusted mechanic. 

What you need to know about salvage titles 

Vehicles with salvage titles are not legal to drive. The car has been deemed as a total loss, or “totaled.” However, if your car has had so much damage that it is deemed “totaled,” you can still make some money by selling the car for its scraps and parts. 

The main difference between rebuilt vs salvage title 

Both a rebuilt and salvage title mean the car has experienced extensive damage. However, the main difference is that a car with a rebuilt title has been repaired enough to be able to drive, whereas a car with a salvage title is undrivable.  

Summary of differences between a car with a rebuilt title and a car with a salvage title:

Vehicle status

• A salvage title vehicle has not undergone repairs or restoration yet and is in its damaged state. It is typically sold to salvage yards or individuals interested in rebuilding or parting it out. 
• A vehicle with a rebuilt title has been repaired and restored to a functional condition, passing inspection to ensure it meets safety and roadworthiness standards.

Repair process

• When a salvage title vehicle is purchased, it often requires significant repairs to restore it to a roadworthy state. The extent of repairs needed can vary depending on the extent of the damage. 
• A vehicle with a rebuilt title has already undergone repairs to address the damage it sustained. 
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Inspection and certification

• A salvage title vehicle has not undergone an inspection and is typically not roadworthy in its current state.
• A rebuilt title vehicle must pass an inspection conducted by a state's Department of Motor Vehicles or a designated authority. The inspection ensures that the vehicle meets safety and roadworthiness standards after repairs have been made. 

Perception and value

• Salvage title vehicles generally have a lower market value compared to similar vehicles with clean titles or rebuilt titles. They are often seen as riskier purchases due to their history of significant damage. 
• Rebuilt title vehicles, while restored, may still have a lower market value compared to vehicles with clean titles, reflecting their previous salvage history.

Insuring a salvage title vehicle can be challenging, and some insurance companies may provide limited coverage or higher premiums due to the perceived risks associated with these vehicles. Additionally, getting financing for a salvage title vehicle may be more difficult, and lenders may have specific requirements or charge higher interest rates.

When shopping for a used car, it is important to familiarize yourself with the various types of titles. A rebuilt title means the car has been damaged, but repaired and inspected. A salvage title means the car can be attempted to be repaired or sold for its parts. While these types of vehicles are cheaper upfront, the cost to finance, insure, and repair down the road may not make the purchase worth it.  

Alternatively, opting for a FINN car subscription provides you with a complete car history. You have many options to choose from, and can switch vehicles when you need to. Browse the vehicles and look into how you can subscribe to a vehicle with FINN today.