Rebuilt title cars have had a troubled past. Certification “rebuilt” means that a vehicle was once recovered – considered a total loss – but restored and now ready for the road.
Buying a rebuilt vehicle can save you a few dollars. But a car with a rebuilt title has drawbacks, including difficulty finding financing and insurance coverage. States use the rebuilt designation to inform prospective buyers that a car was once salvaged from the trash. Even if a rebuilt car is unproblematic after rebuilding, the title remains with it for the rest of its life.
Definition and examples of a reconstructed title
A new car comes with a “clear” or “clean” title, a designation that indicates that it has never suffered major damage. A clear title can be applied to a financed car or one that you own.
When a car is seriously damaged in a traffic accident or by a different type of event, such as a flood, parts theft, or vandalism, the insurance company may consider it a total loss. If this is the case, repairing the car is considered to be more expensive than getting rid of it. In most cases, the carrier will offer you an agreement and take possession of the vehicle .
To recoup its loss, the supplier may decide to sell the totaled car to a company that rebuilds vehicles. When a totaled car is sold to a rebuilder, most states issue a ” save ” Title for the new owner. This designation can inform prospective buyers that the car was once considered a total loss.
Rebuilt titles do not apply to vehicles that have a history of minor fender crashes. It only applies to cars that were once considered a total loss.
When a company or individual successfully rebuilds a car to the point where it can get back on the road and passes the required inspections, they can resell the vehicle. With this type of transaction, the state will issue a “rebuilt title” to the new owner. So a rebuilt title indicates that an insurance company once considered the car a total loss, but then the car was rebuilt to a condition that passed a state inspection.
- Alternate Names : Salvage Title Restored, Brand Title, Rebuilt Title
How does a rebuilt title work?
When builders restore a wild title vehicle in working order, they must have the vehicle inspected before it can be resold. In some states, a rebuilt car must pass a more rigorous inspection than one with a clean title.
In most cases, only a legally authorized inspector, usually a specially trained government employee, can perform the inspection . The inspector can perform a bumper-to-bumper inspection. This includes testing the power of the vehicle and examining parts such as lights, mirrors, tires, and wheels, along with parts permanently attached to the car such as bolts, brackets, and welds. The tests will determine if the car meets the state vehicle code.
If the car passes inspection, it is considered road ready and eligible for a rebuilt title. Inspection and recertification processes, and the fees they incur, vary by state. After recertification, the rebuilt designation will remain with the vehicle to alert future buyers of its damage history.
Some states classify rebuilt titles with the type of damage to the car, such as fire, flood, or water damage, as is the case in Georgia. A rebuilt title can also indicate that the car was once considered scrap, salvage, or was dismantled. Due to safety concerns, many insurance companies do not provide collision or comprehensive coverage or Optional Coverages, such as rental vehicle reimbursement or roadside assistance, for rebuilt vehicles. Titles.
Laws governing rebuilt titles vary by state. Some states may limit rebuilt titles based on the age or resale value of a rebuilt vehicle. In Washington, for example, a car can only receive a rebuilt title if it is five years old or younger.