During the last four years we sold more than 300 vehicles and most of them had REBUILT titles.
Most common questions about rebuilt titles we heard:
1. Is REBUILT title is the same as SALVAGE or JUNK title? - NO
Usually the vehicle get SALVAGE or JUNK title after it was declared a TOTAL LOSS by Insurance company. In some states they call it CLAIM PAID. When the previous owner of the vehicle gets money from the Insurance company, this company takes the vehicle, gets a new SALVAGE title into their name and sells it on the auction. If the vehicle is damaged really bad then it may get JUNK title. In some states it is called SALVAGE-NON REPAIRABLE, FOR PARTS ONLY or CERTIFICATE OF DESTRUCTION. In these cases it is not possible to register and drive this vehicle any more. But if the damage was not very bad then licensed dealers can buy it, fix it and pass the inspection in DMV to get the REBUILT title. In some states it may be called SALVAGED title and it means previously SALVAGE. So in general REBUILT title means that the vehicle already passed the DMV inspection and can be used like any other vehicle. While the vehicle with SALVAGE title can not be registered until it would pass the inspection. So REBUILT and SALVAGE is not the same.
2. Does REBUILT title means that engine, transmission or something else was rebuilt in the vehicle? - NO
REBUILT title may be issued because of different types of damages: accident, flood, storm, fire, theft, etc. And on the other hand when somebody rebuilt the engine or transmission he shouldn't go through DMV inspection and get REBUILT title. So REBUILT title just shows that the vehicle had some damage before, was paid for that damage by the Insurance company, but was fixed and passed inspection in DMV.
3. Does REBUILT title means that vehicle had some certain amount of damage (for example 25%, 50% or 75%)? - NO
The reason why Insurance company declared vehicle as TOTAL LOSS and paid for some claim depends upon their own rules and type of insurance the previous owner had. In some cases it is enough that the vehicle was not possible to drive (some wires were damaged or control arm was bent). If insurance company can not provide the replacement for the repair period or there is shortage of some parts and it is not possible to fix the car in timely manner. Also when the vehicle was stolen it may be later returned without any damages but it would be already declared a TOTAL LOSS and will get first SALVAGE title and then REBUILT after the DMV inspection.
4. Is there any restrictions to buy, sell, register or drive the vehicle with REBUILT title? - NO
When the vehicle passed the inspection in DMV and got REBUILT title it means that it was recovered from any damages it had. You can buy it, sell, register and drive it like any other normal vehicle. But there are some small issues connected to REBUILT title
a. Getting FULL COVERAGE / COMPREHENSIVE INSURANCE. If you have a vehicle with REBUILT title you can still easily get simple coverage from any insurance company (your personal drivers liability). But if you want to get full / comprehensive coverage then some insurance companies may refuse to provide it because of the REBUILT title. So you will have to look for another insurance company or at least discuss all possible options with your insurance company.
b. Getting FINANCING for the vehicle with REBUILT title. Banks and Credit Unions don't have technical specialists to check every vehicle. So they just trying to avoid these cars at all. It is still possible to get financing from them as a personal loan or to get financing from special financing companies.
c. In some states like Georgia local DMV can ask you to pass additional inspection to check the vehicle if it has REBUILT title.
5. Is the vehicle with CLEAN title always better than the vehicle with REBUILT title? - NO
In average vehicles with CLEAN titles had less damages than vehicles with REBUILT titles. But sometimes the vehicle with REBUILT title may have very small damages or no damages at all (like recovered stolen vehicles). And in many cases vehicles could have severe damages but if it was not paid by Insurance company the title will remain CLEAN. There are a lot of vehicles on the auctions with deployed airbags and damaged frames but they have CLEAN titles because it wasn't covered by Insurance. When the vehicle has a lot of rust or blown engine the title will also remain CLEAN. If the vehicle was poorly maintained, nobody never changed oil, interior has bad smells and paint is faded the title will stay CLEAN. So never make a decision based only on the type of the title. Check the real condition of the vehicle before you judge.
6. Is the vehicle with REBUILT title should cost certain amount less than the same vehicle with CLEAN title (for example, 10%, 25% or 50%)? - NO
In average vehicles with REBUILT titles cost less than the same with CLEAN title. But there is no certain amount of discount. If the damage was really hard and was fixed not very good then the discount may be 30-40%. But if the the damage was very small and was professionally fixed then the discount could be 5-10%
7. Should I avoid buying the vehicle with REBUILT title? - it depends
If you need financing from the bank, full coverage and you are going to register it in Georgia then buying the vehicle with REBUILT title would be not the best option (but still possible). In all other cases you can save money buying the vehicle with REBUILT title. Just ask the Carfax (or any other similar) report, pictures or at least the description of the damages, what was fixed and check it with the mechanic you trust. And it will help you to find a reliable vehicle and no matter what type of title it has!
Most common questions about rebuilt titles we heard:
1. Is REBUILT title is the same as SALVAGE or JUNK title? - NO
Usually the vehicle get SALVAGE or JUNK title after it was declared a TOTAL LOSS by Insurance company. In some states they call it CLAIM PAID. When the previous owner of the vehicle gets money from the Insurance company, this company takes the vehicle, gets a new SALVAGE title into their name and sells it on the auction. If the vehicle is damaged really bad then it may get JUNK title. In some states it is called SALVAGE-NON REPAIRABLE, FOR PARTS ONLY or CERTIFICATE OF DESTRUCTION. In these cases it is not possible to register and drive this vehicle any more. But if the damage was not very bad then licensed dealers can buy it, fix it and pass the inspection in DMV to get the REBUILT title. In some states it may be called SALVAGED title and it means previously SALVAGE. So in general REBUILT title means that the vehicle already passed the DMV inspection and can be used like any other vehicle. While the vehicle with SALVAGE title can not be registered until it would pass the inspection. So REBUILT and SALVAGE is not the same.
2. Does REBUILT title means that engine, transmission or something else was rebuilt in the vehicle? - NO
REBUILT title may be issued because of different types of damages: accident, flood, storm, fire, theft, etc. And on the other hand when somebody rebuilt the engine or transmission he shouldn't go through DMV inspection and get REBUILT title. So REBUILT title just shows that the vehicle had some damage before, was paid for that damage by the Insurance company, but was fixed and passed inspection in DMV.
3. Does REBUILT title means that vehicle had some certain amount of damage (for example 25%, 50% or 75%)? - NO
The reason why Insurance company declared vehicle as TOTAL LOSS and paid for some claim depends upon their own rules and type of insurance the previous owner had. In some cases it is enough that the vehicle was not possible to drive (some wires were damaged or control arm was bent). If insurance company can not provide the replacement for the repair period or there is shortage of some parts and it is not possible to fix the car in timely manner. Also when the vehicle was stolen it may be later returned without any damages but it would be already declared a TOTAL LOSS and will get first SALVAGE title and then REBUILT after the DMV inspection.
4. Is there any restrictions to buy, sell, register or drive the vehicle with REBUILT title? - NO
When the vehicle passed the inspection in DMV and got REBUILT title it means that it was recovered from any damages it had. You can buy it, sell, register and drive it like any other normal vehicle. But there are some small issues connected to REBUILT title
a. Getting FULL COVERAGE / COMPREHENSIVE INSURANCE. If you have a vehicle with REBUILT title you can still easily get simple coverage from any insurance company (your personal drivers liability). But if you want to get full / comprehensive coverage then some insurance companies may refuse to provide it because of the REBUILT title. So you will have to look for another insurance company or at least discuss all possible options with your insurance company.
b. Getting FINANCING for the vehicle with REBUILT title. Banks and Credit Unions don't have technical specialists to check every vehicle. So they just trying to avoid these cars at all. It is still possible to get financing from them as a personal loan or to get financing from special financing companies.
c. In some states like Georgia local DMV can ask you to pass additional inspection to check the vehicle if it has REBUILT title.
5. Is the vehicle with CLEAN title always better than the vehicle with REBUILT title? - NO
In average vehicles with CLEAN titles had less damages than vehicles with REBUILT titles. But sometimes the vehicle with REBUILT title may have very small damages or no damages at all (like recovered stolen vehicles). And in many cases vehicles could have severe damages but if it was not paid by Insurance company the title will remain CLEAN. There are a lot of vehicles on the auctions with deployed airbags and damaged frames but they have CLEAN titles because it wasn't covered by Insurance. When the vehicle has a lot of rust or blown engine the title will also remain CLEAN. If the vehicle was poorly maintained, nobody never changed oil, interior has bad smells and paint is faded the title will stay CLEAN. So never make a decision based only on the type of the title. Check the real condition of the vehicle before you judge.
6. Is the vehicle with REBUILT title should cost certain amount less than the same vehicle with CLEAN title (for example, 10%, 25% or 50%)? - NO
In average vehicles with REBUILT titles cost less than the same with CLEAN title. But there is no certain amount of discount. If the damage was really hard and was fixed not very good then the discount may be 30-40%. But if the the damage was very small and was professionally fixed then the discount could be 5-10%
7. Should I avoid buying the vehicle with REBUILT title? - it depends
If you need financing from the bank, full coverage and you are going to register it in Georgia then buying the vehicle with REBUILT title would be not the best option (but still possible). In all other cases you can save money buying the vehicle with REBUILT title. Just ask the Carfax (or any other similar) report, pictures or at least the description of the damages, what was fixed and check it with the mechanic you trust. And it will help you to find a reliable vehicle and no matter what type of title it has!