Salvage and Rebuilt Title Cars: What You Should Know?

Posted : March 15, 2024
Salvage and Rebuilt Title Cars

The car rebuilt meaning is that, at some point in the car’s life, it was extremely damaged and declared as a total loss by a car insurance company.

If the car goes on sale, it gets the rebuilt title meaning that the car was repaired or rebuilt by someone. Before you go on to get this type of car or apply for an auto finance loan to own the same, it is advisable to keep a few things in mind to make sure you get involved in a deal that works best for your requirements as well as your budget.

Is Buying a Rebuilt Car an Ideal Option?

Everyone who is planning to buy a car wants to get a great deal. While searching for a car at some point, questions like “Should I buy a car with a rebuilt title?” come to mind. There are many things to be taken into consideration while purchasing a rebuilt car. In addition to this, understanding the difference between salvaged cars and rebuilt cars is an evident necessity.

What Does Rebuilt Status Mean?

It refers to a vehicle that has been declared a total loss previously by an insurance provider especially due to severe damage. It is after the necessary repairs are completed; that the car undergoes inspection to ensure it meets roadworthiness standards. After the car passes inspection, it is given a rebuilt title which means that it has been reconstructed.

What is a Rebuilt Car Title?

It is a legal document that is typically issued by the authorized motor vehicle department or a similar agency to indicate that a car has been declared a total loss by an insurance company earlier but the same has been restored to a roadworthy condition. So, you can drive this vehicle on public roads. The title has every detail of the vehicle’s history, and this is going to affect the resale value of the car.

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What are Salvaged Cars?

Salvaged cars, also known as salvage title cars in Canada, have been damaged to a severe extent. Under these circumstances, an insurance company declares a car as a total loss. There are some common reasons such as flooding, fire damage, collision damage, theft recovery, etc. Such significant damages lead to salvage cars which are generally sold by insurers at salvage auctions. However, there are auto repair shops or individuals who may repair or rebuild such vehicles. Such cars may also pass a state inspection before they are issued a rebuilt title.

Is Rebuilt Title Bad?

Whether or not you should go for a car with a rebuilt title depends on many factors such as your financial situation, willingness to take potential risks, and how knowledgeable you are to perfectly inspect the vehicle to make an informed decision.

Important Things to Keep in Mind Before Buying a Rebuilt Title Car

  1. Receipt of the car: If the seller himself has paid for the car repair, then you should ask for a receipt. The car repair receipt will let you know about the specification of the damaged part of the car and how much money was spent on it for repair. Simply leave if the car receipt is not there.
  2. Car insurance: You should make sure the car is insured by the previous owner as it will make the process of insurance easy for you. If the seller has not insured the car then there is the possibility of the car having damages or similar issues.
  3. Car repair shop: Make sure the car has been repaired by a certified and expert mechanic shop or person. If the car has been repaired by a non-certified mechanic or street-side mechanic, you should avoid buying it.
  4. Powertrain or frame damage: The most expensive part of a car is the frame and power train as it contains the internal components such as the engine and motor of the car. Check if it is fully repaired as some seller cuts the corner of the frame in order to reduce cost.
  5. Estimated cost repair: You need to know whether the owner has an estimate of the cost of damage repair of the car and is willing to pay for it. Generally, this question is asked in the case of salvage-titled cars.

Once you have addressed all the concerns and received an answer, you should schedule a meeting with a certified mechanic to examine your car. Inspecting the car thoroughly will ensure that you received a good condition that will not break after months of buying. You should also test drive the car multiple times before buying the car to ensure it runs safely and there are no concerning noises.

Knowing what a rebuilt status means and what things should be taken into consideration is very important to make sure you get into the right deal.

Understanding the intricacies of salvage and rebuilt cars is very important to exercise caution before making a purchase decision. There are various factors such as insurance status, vehicle’s repair history, repair shop credibility, estimated repair costs, etc. which must be considered.

It is equally important to obtain a detailed report receipt while also verifying insurance coverage to assess the overall condition of the vehicle. You can also consider engaging a certified professional to carry out a comprehensive inspection and conduct multiple test drives to make sure the car is safe and delivers good performance. By adhering to these guidelines and also seeking professional assistance on car finance loans, you can make informed decisions. 

Jack Fortin
Auto Finance Expert

Jack Fortin is one the leading car loan and auto finance experts in British Columbia, Canada. He loves to write and share car loan news and updates.

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