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When purchasing a used car, it is important to understand the different title types, such as rebuilt and salvage titles, to help make an informed purchasing decision.
What is a rebuilt title?
A rebuilt title is one that has been assigned to a vehicle after repairs or modifications have been made following damage due to an accident, fire, vandalism, or other source of destruction. In order to receive a rebuilt title, the vehicle must be inspected by the local department of motor vehicles to ensure that the repairs have met all the requirements set forth by the state.
Once the vehicle passes inspection and is deemed roadworthy, the state will assign a new title to the vehicle, indicating that it is now roadworthy and legal to operate on the roads.
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What is a salvage title?
A salvage title is assigned to a vehicle that has been declared a total loss by an insurance company or other agency due to damage exceeding a certain percentage of the car’s fair market value. A salvage title is typically assigned when a vehicle has been damaged beyond repair or is inoperable. In some cases, the car may be repaired and qualify for a rebuilt title, but it will still retain its salvage title designation.
Rebuilt Title vs Salvage Title
The major difference between a rebuilt title and a salvage title is that the former is assigned to a vehicle that has been made roadworthy, while the latter is assigned to a vehicle that has been declared a total loss. Additionally, vehicles with rebuilt titles typically cost more than those with salvage titles and may be more difficult to insure.
It is important to understand the difference between a rebuilt title and a salvage title before investing in a used vehicle. Researching the car’s history and getting an inspection from a qualified mechanic can help you make an informed decision and ensure that you are getting the best value for your money.
