What is the rebuilt car name?
If you’re shopping for a used car, you’re likely to come across a significant price drop on some vehicles known as “rebuilt titles.” While their low sticker prices are tempting, it’s important to know what a rebuilt title means.
If you’re shopping for a used car, you’re likely to come across a significant price drop on some vehicles known as “rebuilt titles.” While their low sticker prices are tempting, it’s important to know what a rebuilt title means.
key takeaways
- A car with a rebuilt title is often declared a total loss by the insurance company and then repaired and resold.
- A modified car should be a lot cheaper than a “clean” equivalent.
- Having a rebuilt title can also make the car harder to insure.
What is a rebuilt title?
Most used cars have a “clean title” that proves that the new owner is getting a well-oiled car. However, if a used car has ever been in a major accident, passed a dealer buyback due to a successful Lemon Law claim, or had its odometer rolled back, it may have a rebuilt designation.
Rebuilt ownership usually means that at some point, the car was so badly damaged that it was declared a physical total loss or “total loss” by the auto insurance company. If the same car is subsequently listed under rebuilt ownership, it means that someone worked hard to fix or rebuild it to make it work. Repaired vehicles may be inspected before they can be driven on public roads according to local laws.
Restoring Ownership and Salvage Ownership
It takes a lot of time for a complete car to be maneuverable enough to earn a rebuilt title. When a car is declared a total loss by an insurance company, it is entitled to salvage. These vehicles are considered unsafe to drive on public roads, and salvage title helps warn potential buyers of serious damage to the vehicle.
Salvage vehicles are usually “as is”** with the intention that the person who purchased the vehicle may attempt to rebuild the vehicle or use it as a part to repair other vehicles. If it’s the former, new owners can apply to the state Department of Motor Vehicles to rebuild the title after repairs are complete.
Some unscrupulous sellers may try to cover up this fact by shipping a car to another state, fixing it, and applying for a new, clean title, a process known as “title cleaning.” To help combat this deception, the National Insurance Crime Bureau (NICB) offers a free online service called VINCheck that allows potential buyers to check a car’s Vehicle Identification Number (VIN) to see if an insurance company has previously listed it for total loss.
Pros and cons of rebuilding titles
Despite their kaleidoscopic pasts, buying a rebranded car isn’t always a bad idea. Here are some pros and cons, starting with the pros:
The benefits of buying a modified car
- Costs are significantly reduced. A modified car should be significantly cheaper than an unmodified equivalent.
- The loss may not be as severe as you think. There are many reasons to declare a total loss of a car. If the rebuilt car is in good shape and just needs some expensive new parts that the insurance company doesn’t want to pay for, it could be fine. But if it suffers more serious damage, for example, causing a twisted or cracked frame, it’s probably a gamble that’s not worth taking. Be sure to ask why the car had to be rebuilt and what steps were taken to fix the damage and also check the VIN at the NICB site. If you’re not an auto expert yourself, consider paying a trusted mechanic to check it out for you.
Disadvantages of buying a modified car
- Damage from the past will allow their ugly heads to grow in the future. Even if you try to thoroughly inspect the car before the deal closes, the car is a complex machine and things can go wrong. Mechanical problems that appear to be fixed can cost you hundreds or thousands of dollars in repairs. One type of damage that requires special vigilance is flooding, which may not be immediately apparent but can cause major problems when metal corrodes. Consumer Reports provides a checklist of how to identify flood-damaged cars.
- It may be harder to get insurance. Your car may be top-shaped, but a rebuilt title can be radioactive to some insurance companies. In some cases, the insurance company may refuse to give you collision or comprehensive insurance (covers damage to your car) but will agree to give you liability insurance (covers damage you cause to other people or their property). Liability coverage is mandatory for drivers in almost every state, but collisions and comprehensive options are available.
- Might be hard to sell. When you no longer need the car or decide to sell it, your car’s rebuilt designation can scare off potential buyers.
Should I buy a modified car?
Buying a reloaded car is a gamble. If you’re willing to take the risk and all goes well, this could be a rare deal. Otherwise, it could end up costing you more money than simply buying a car with a clean title in the first place.
