A rebuilt title vehicle, also known as a salvage vehicle, has undergone major repairs following a collision. Its value is 10 percent to 50 percent lower than the value of a comparable non-rebuilt vehicle.
Title terms
A vehicle with a rebuilt or salvage title has a certificate of title that indicates the vehicle was repaired after a major accident. Look for the terms salvage, repaired or junk on the certificate of title.
Benefits
Vehicles with rebuilt titles sell for much less than those with clean titles.
Warning
When a vehicle is issued a rebuilt title, you might have difficulty insuring or financing the car. Many lenders will not finance an asset that has been devalued as much as a rebuilt car, and insurance companies might provide liability insurance but not collision coverage.
Identification
Vehicles with rebuilt titles have a title printed on a different color stock than clean titles. The color varies by state.
Potential
If you like to purchase vehicles and keep them for many years, a rebuilt vehicle can be a good purchase. However, you might find it difficult later to sell your vehicle to a private party, as many are uncomfortable purchasing a vehicle with significant previous damage.
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