Rebuilt Title Quick Facts
- If a vehicle is declared a total loss and then gets fixed after earning a salvage title, the car has a rebuilt title.
- Cars with rebuilt titles sell for much less money than their clean-title counterparts.
- If you buy a car with a rebuilt title, there’s no reliable way to know how well the mechanics repaired the vehicle
A rebuilt title indicates that a former salvage vehicle has undergone successful repairs and passed a rigorous inspection, declaring the refurbished car is safe to drive.
Keep reading to learn more about rebuilt titles and other title designations, how they affect a vehicle’s value, and whether you should consider buying a used car that an insurance company previously declared a total loss but emerged from salvage status.
- What Is a Clean Car Title?
- What Does a Salvage Title Mean?
- What Does a Rebuilt Title Mean?
- Does a Rebuilt Title Affect the Value of a Car?
- Should I Buy a Car with a Rebuilt Title?
- How Can You Tell If a Car Is Rebuilt Properly?
- Car Insurance for a Rebuilt Title
What Is a Clean Car Title?
If a car drove a normal life with no serious accidents, never had its odometer rolled back, and the manufacturer never repurchased it because of a defect, it’s said to have a clean title. That title is free of any title brands that denote special status and warn potential buyers of a possible problem or issue with the car.
To find out if a car experienced any accidents, obtain a vehicle history report from AutoCheck or Carfax. Reports allow free flood-risk checks and provide information like accident history and service records.
What Does a Salvage Title Mean?
If a car has an accident and an insurance company declares it totaled (a total loss due to accident damage), a salvage title replaces the car’s clean title. The salvage title lets potential buyers know that the car experienced an accident and it may not be safe to drive.
What Does a Rebuilt Title Mean?
Once a vehicle gets fixed after receiving a salvage title, it earns a rebuilt title. A rebuilt title is only provided after the car is refurbished and inspected by the state or jurisdiction that issues titles. If the repairs are satisfactory, the title is changed from “salvage” to “rebuilt” to reflect the repairs performed and note that the car is now fixed.
Rebuilt Title vs. Salvage Title
- Vehicles with a salvage title need substantial work to make them legally drivable and insurable.
- A car with a rebuilt title has completed considerable work after refurbishing and passing an inspection.
- Cars that were once salvaged can receive rebuilt titles after meeting the required standards.
RELATED: Rebuilt Title vs. Salvage Title: What’s the Difference?
Does a Rebuilt Title Affect the Value of a Car?
A vehicle’s resale value is affected by the type of title it has, and cars with rebuilt titles sell for much less money than their clean-title counterparts. These cars can be good deals, provided certified mechanics rebuild the vehicle properly. The challenge for potential buyers is that much of the repair work isn’t easy to inspect. If the price of any used car seems too good to be true, you should consider staying away from it.
To check the value of a car, use our tool from our sister site, Kelley Blue Book.
Is a Rebuilt Title Bad?
Since a car with a rebuilt title was previously totaled and had a salvage title, you might think you should avoid it altogether. And you may be right. After all, such damage can be destructive to a car’s structural integrity, even if repairs were comprehensive enough to earn the rebuilt status. However, you shouldn’t automatically avoid every car that has a rebuilt title. Sometimes, these cars sustained only cosmetic damage and received professional restoration.
Should I Buy a Car With a Rebuilt Title?
Usually, you should stay away from cars with a rebuilt title due to safety concerns and low resale values. Often, a car with a rebuilt title has been in an accident severe enough to earn it a salvage title, and you should avoid it altogether. After all, such damage can be destructive to a car’s structural integrity, even if repairs were comprehensive enough to earn this type of title.
But you shouldn’t always avoid a car with a rebuilt title. In some cases, professional repairs have been done to these cars, and the quality is almost as high as the factory’s standard. That means they should suffer no serious consequences compared to a vehicle with a clean title. Check out the pros and cons below.
| Pros | Cons |
|---|---|
| You can buy a car for much less money than a similar model with a clean title. | Some damage may not be immediately evident, such as corrosion from floodwater causing electrical problems or safety issues down the road. |
| With proper repairs and successful inspection, the car might give you reliable transportation for years. | Selling or trading a vehicle with a rebuilt title is challenging — dealers won’t offer top dollar, and private buyers might avoid the rebuilt designation. |
| Some cars are totaled because of expensive parts, but they could be a gem after fixing. | Your insurance company will likely deny comprehensive coverage and provide only a liability policy for cars with rebuilt titles. |
How Can You Tell if a Car Is Rebuilt Properly?
A big problem with buying a car with a rebuilt title is that there’s no reliable way to know how well the mechanics repaired it. We strongly suggest paying for a thorough inspection by a competent mechanic before your purchase. Have them assess the vehicle’s repairs and raise red flags regarding possible future problems.
In general, we advise typical car shoppers to avoid cars with rebuilt titles. While these cars were repaired, it’s hard to know the quality of the repairs and the parts used. However, if the vehicle passes an evaluation from a trusted mechanic and the repair quality is excellent, buying a used car with a rebuilt title can be a great way to get a good deal on a used vehicle.
Car Insurance for a Rebuilt Title
Another reason many consumers steer away from buying a vehicle with a rebuilt title is car insurance — or the difficulty of finding coverage. Call your insurance carrier to ensure they’ll offer a policy for a car with a rebuilt title.
In many cases, insurance companies face trouble valuing a car with this type of title because it’s challenging to evaluate the vehicle’s pre-existing damage. Some companies may offer liability coverage. They might not want to provide comprehensive and liability coverage on a car whose integrity could be compromised and pose a risk on the road.
Can You Get Full Coverage on a Rebuilt Title?
Many insurance companies will not provide full coverage on salvaged and rebuilt vehicles, and potential insurance carriers may require a statement from an independent mechanic stating that the car is in good working condition.
Editor’s Note: This article has been updated since it was initially published.
The state inspection is primarily to verify any parts utilized in the repairs are documented from a verified source and are not from a stolen vehicle.The inspection does not confirm or certify the quality of repairs.
In some cases, a vehicle may have been considered a total loss even if the damage wasn’t that severe. If the vehicle value is not much more than the repair, it can be “totaled”. For instance a fender and door damage in a car that KBB only says is worth $2,000 will be totaled even though you may be able to replace the door and fender and have a perfectly good car.
Does it make sense that a car has a rebuilt title after being recovered after it was stolen?
Where can I buy a GOOD and WELL DONE rebuild SUV or VAN in the Miami area?
AutoSource in Post Falls ID ask for Sally. We ship cars 🙂 We have 9 different locations 🙂
Thank you Joe Stewart, I appreciate you Posting Your Comment!
AVOID COAST-to-COAST Imports!! They sell cars that have VIN #’s that REAL insurance companies cannot locate. “Bill”, a salesman at Coast-to-COast imports is the rudest liar Ive ever dealt with. They claimed that a “lot guy backed into the car” when I asked for the buyer order…They are sketchy! AVOID COAST-TO-COAST and “Bill”….
I bought an abandoned building that had a couple cars in good shape… owner is long gone or passed away… the cars may need some work to get running.. there’s no title.. do I acquire a rebuilt title?
I started rebuilding cars and pickups in 1985. I have rebuilt a few hundred since then. Now days since I have gotten old and retired I only build them for my family. If these vehicles were unsafe in any way I wouldn’t put my loved ones in them and endanger their lives. The bad rap these vehicles get is generated by the new and used car industry. They don’t want these vehicles back on the road because that cuts into their business. The salvage people don’t like us either because we buy their vehicles and rebuild them. I will also say that you need to know or do a thorough background check on the person rebuilding and selling the vehicle. I had many repeat customers. I was a perfectionist when it came to my cars. I put everything I had into them. I bought tons of new parts and never cut corners on any of my builds. As I have stated before. Check the background of the rebuilder. There are some who ‘throw’ a vehicle together to get rid of it and it makes us true professionals look bad. If a rebuilt vehicle was dangerous I surely wouldn’t put my loved ones in one to drive. I will also say that a wrecked vehicle can be put back on the road in better shape than when it came from the factory.
Hi joe I agree with you 100% you can rebuild a car better than a production line when using original manufactured product and the person doing. Not always go with the cheaper price know the rebuilder and a refrenence of they’re work:) I did bought 18 Honda Civic touring and saved $10K rather than buying new.
I bought one of these told it just had alignment issues, when takin to a mechanic they could not get parts to realign as it was never rebuilt properly, it is people that give these cars a bad name. The ones that skirt or loophole the law for their own pocket! These as mine, are NOT safe to drive or be in!
How much can you expect on price drop
What’s the color blue mean in a rebuilt title?
does it affect vehicle warranty
Yes, all warranty’s will become void. Recall issues will still be covered though
What about if you buy the car and rebuild it yourself? I have a 2015 Forester that only needed a new hood/grill, bumper cover / energy absorber, right headlight assembly, and replacement of airbags. The frame was never touched and it is perfect in every other instance.
You can rebuild it yourself if you have any skills. Cars are just a lot of parts rolled together and if you replace ‘all’ of the damaged parts and get it inspected by the professionals you should be ok. Don’t ever worry about a bent frame. They have frame straighteners who will put them back in perfect shape.
It is really important that the inspection should be done by a 3rd party person who will give an honest review and report. Why not use the new Veryfier app to hire an independent third-party person to go out inspect and check the item before you purchase? Download the app at the Veryfier website or go to iTunes.
I am from Africa, and i live in Nigeria..How can i buy used cars from the US and ship them to Nigeria for sale…
forget buying used cars in the US, the cost of the shipping and also taxes are very expensive, mo bettah purchase it in your place, u can save more
Checkout out Copart.com. Those from less affluent countries (including Nigeria) frequently bid on certain categories of those vehicles. I don’t know how they make it pay, considering shipping … but they must have a way.
Can you sell a car with a rebuilt across state lines, or would it have to get re-certified?
frt
,
Thank you very much for the info.
But if the insurance com will not insure it… In Texas you must have insurance
Most companies will offer insurance but not full coverage just liability only.
Insurance “not covering it” is for collision coverage, not for liability that you are required to carry per state law. Collision coverage is to repair your own car in case of an accident. Your lender might require that coverage, but it is not required by law. Liability coverage pays for the people’s damages that you hit with your car. That is why it is required by law – to protect others who are just minding their own business when someone runs into them.
There are a few companies who won’t. I insure all of mine with State Farm.
I know who rebuilt from salvage my Prius. KNOW YOUR REPAIR PERSON…. the underground around LA is rampant with terrible cars on “rebuilt” status. KNOW WHO REBUILT THE CAR.
I bought a 2015 BMW from GT Foreign there in LA area, and it has been a terrible nightmare, they would not accept blame for anything I would avoid that Company at all cost. repairs were done poorly, for one the steering gear box was cracked in wreck and they welded rather than replaced. it was very dangerous, luckily we discovered it before it caused my wife to have a wreck. but the car still has several issues, it has been very costly, NOT worth the “GREAT” deal they gave us on it.
In Texas also. You have a lot of ‘foreigners’ who are in the rebuilding business. They do shoddy work for the most part that I have seen. I am not picking on the foreigners.
Good information… Thank you very much!..
Thank you for the information.
Thank you for this information.
I had two rebuilt cars They were not bad. But they had little cosmetic problems.
Is a car that has hail damage and then resold considered rebuilt?
Yes that’s the reason I was on this page
Yes, I bought a perfectly great suv that was in a hail storm, although it did have the front and rear windows replaced, they couldn’t fix the dings in the body.
Some are. Some aren’t. I have fixed a lot of hail damaged cars that were totaled. If they are totaled then they have a salvage title. Their damage is cosmetic though. I have fixed and driven a few of them with no problems.
Does the seller have to tell you everything that was rebuilt/fixed and by who? Is there paper work that list everything done if you buy?
It’s possible to track everything
Use the VIN NUMBER
There are some websites which can give you all info about the car.