Salvage And Rebuilt Vehicles Primer

Whether you have just begun your hunt for a used car, or you have years of experience in sourcing the ads for the best used car deals, you’ve read the words clean title, salvage title and rebuilt title. One of these three terms is included in virtually every car ad around, and it says a lot about a car’s history. Now, you must wonder what all these different types of titles mean, so lets delve into the differences between them.

But, before we break down all three terms and explain what they mean, and what it means to you as a car buyer, let’s start with the basics. A title, or title of ownership is a legal document issued by a local Department of Motor Vehicles. It includes all relevant information regarding the car. On it, you’ll find the name and address of the owner or lien holder, make, year, and price of the car when new, VIN number, license plate number, power, gross weight etc. Whenever a car changes ownership, the old owner passes the title to the new one, who proceeds to get a new title with their name on it. Now that we’ve got this covered, we may proceed to three types of titles you’ll find during your car hunt.

Clean Title

If your potential car has lived a normal, happy and accident-free life, it will have a clean title. A clean title refers to a car that is insurable. It is either a new car, or a car that wasn’t involved in an accident during its time on the roads. Most cars you’ll encounter while searching for your future car are clean title cars. However, that still doesn’t mean that a clean title used car is in perfect condition, so make sure you have a trusted mechanic by your side when inspecting it for potential flaws.

Salvage Title

If you find a deal that seems too good to be true, there’s quite a big chance that it’s a salvage title car. Salvage title refers to a car that has been damaged to the point where an insurance company declared it a total loss. A total loss means that the repair costs are too high considering the value of the vehicle. As such, the car gets taken by the insurance company, and it’s either sold to a repair facility, a scrapyard or a recycling facility.

There are numerous ways for the car to get a salvage title, and not all are major traffic accidents. A salvage title car can be a flood-damaged car, a car that had caught fire, or a car that had extensive hail damage. Vandalism can also be the reason for a car to get a salvage title, and in some cases, even a car with a tampered odometer can be a salvage title one. If a car had been stolen and was found after a total loss payout, it also earns a salvage title, and these cars could be the best salvage title deals around because they can be well-kept examples that just had the misfortune of being stolen.

What’s worth knowing is that a salvage title car can’t be insured or put back on the road unless it has been repaired. So, is a salvage title worth buying? The answer is – it depends. Some salvage title cars are truly irreparable, and should not be considered at all. Others will give you a chance to put them back on the road, but the repairs could end up costly and time consuming. However, there are salvage title cars that could be repaired and revived quite easily, but you’ll have to be quick and lucky to find them.

So, if you decide to buy a salvage title car, make sure to consider all associated risks and be aware that you’re basically gambling with your money if you’re not consulting an expert. The first step to take when buying a salvage title car is to buy it from a reputable seller. Next, get it closely inspected by your trusted mechanic. If the salvage title car in question was in an accident, you should also take it to a body shop for close inspection for any potential structural damage that can’t be detected by an untrained eye. Finally, check the original repair cost estimate, as it will provide the best insight into potential costs of the whole repair process. It should also give you valuable details regarding the accident.

Rebuilt Title

If you want to skip the hassle of buying and repairing a salvage title car, yet you still want a car that will cost you less than a clean title car, there are rebuilt title cars waiting for you. A rebuilt title car is a car that had a salvage title, but has been subsequently repaired and made roadworthy.

When going for a rebuilt title car, the same rules apply as with a salvage title one. You should find a reputable seller, and closely inspect the car with your mechanic. Also, make sure to get every bit of information from the seller, e.g. what was the reason for the car to be issued a salvage title, what repairs have been made using which quality of parts etc. Always ask for original rebuilt title application paperwork and make sure that your mechanic gets through every replaced part.

A rebuilt title car can be a completely sound car that will provide you everything a clean title car has to offer. If the rebuilt car hasn’t sustained structural damage, or if it was a well-kept, well-repaired example,

But, for a rebuilt title to be a perfect buy, you also need to find a perfect insurance company. Not all companies will allow you full coverage, and some won’t even write you a policy. In most cases, insurance companies may offer only a policy on liability, and the insurance rates could also be higher. Rebuilt title cars tend to have lower resale value than the comparable clean title cars, but that’s not the only downside when it comes to selling them. Apart from the lower resale price, the market for rebuilt cars is significantly narrower regardless of the class. For example, the used economy car market is so big that anyone can easily find a clean title car that matches their budget, while not many average sports car or luxury sedan buyers will risk buying a rebuilt example, as they probably have the money for a clean title car.

Conclusion

If you are not on a tight budget, and you’re looking for a car to use every day, you should go for a clean title car. That way, you will have the best chances of buying a safe, mechanically sound car for you and your family to enjoy many carefree miles. However, if you’re looking for a very specific car, or you want to buy a weekend car or a workhorse farm truck, rebuilt title cars are your choice because you’ll have a completely usable vehicle for a significantly lower price. Finally, if you have a strong mechanical background, patience or a lot of luck while browsing through your local ads, a salvage title car is there for you. If you rebuild it and make it roadworthy, you’ll have a car you’ve dreamt of for a fraction of its price, but be aware that its resale value will be lower as well. Whatever you choose, our advice is for you to be wise, have a trusted mechanic, check all the paperwork and find the car that you’ll enjoy for many miles to come.