Vehicle Titles 101

There are numerous car dealerships everywhere with some dealing with used cars. If you feel that it is time you got yourself a car from a used car dealership, you have to consider a couple of factors. To start with, you must get a vehicle that suits your needs, which will entail assessing all those that come close to the type or model of vehicle you want to get. You are also required to assess the paperwork. There is a high likelihood that the cars in a used car dealership will have a salvage title, while others will have a rebuilt title. 

One of the major concerns that you may have is not knowing what those terms mean. This being the case, a lot of questions will run through your mind. Should you make the purchase? Is this the best option for you? Can you use this to your advantage to get your dream car at lower price? Well, you do not have to worry. This post will clearly outline what these titles are, and discuss what they include. Moreover, it will outline how drivers can get the right coverage for these vehicles. 

What Is The Major Distinction Between A Salvage And A Rebuilt Title? 
There is a major difference between these two titles. A salvage title means that the vehicle was completely demolished/ totaled. To reach this state, a vehicle must have been wrecked in a road carnage, a natural disaster, or vandalized. On the other hand, a rebuilt status simply represents a car that has been rebuilt. 

Without further ado, let us expound further on each of these titles. 

What exactly is a salvage title? 
We will first explain how a car comes to be regarded as totaled. A vehicle is considered completely demolished if it has been damaged to a point where the cost of repair is much higher than the value of the car. Your insurer or adjusters are the ones that define this. Normally, they term a vehicle as totaled if the damage on it is from 50 to 80 percent of its actual cash value. 

At this point, the insurer possesses the totaled vehicle. They are the ones who will sell it to a salvage car yard from where it will be rebuilt by a skilled mechanic or automotive professional. If you are wondering what happens to you when your insurer takes possession of the vehicle, here is what goes down. The insurer pays you for the car. However, keep in mind that the amount of compensation you receive is equivalent to the actual value of your vehicle in its present state. Alternatively, your insurer will give you a vehicle that is worth the value calculated. 

Therefore, next time you go to a car dealership to buy a car and the paperwork shows that the vehicle you want has such a title, this is a clear indication that the car had previously been totaled. 

What is a rebuilt title? 
This is the other kind of title that you can find in a used car dealership. What exactly does it mean? Well, when a car has been taken to a salvage car lot and gets fixed, its title status changes to rebuilt. Keep in mind, however, that this is not something that occurs automatically, the vehicle has to be thoroughly inspected soon after the repairs. 

Why is there a need for inspection? A car that has been totaled is in extra poor shape. This means that it may never return to its original condition. That is why it is advisable to look for a second opinion from a highly skilled mechanic before you make your purchase. The advice given could help you choose a car that is in good condition and roadworthy. 

Is It Advisable To Buy A Salvage Car? 
This is a question that commonly runs in the minds of people who want to purchase a car from a used car dealership. The truth is that some people prefer to buy a salvage car because it more affordable compared to a new vehicle that has never been damaged. 

Regardless of the low cost, you have to factor in other things. Salvage cars need a lot of fixing because of the extent of damage they have undergone. These repairs may be expensive, sometimes exceeding the price you would have paid for a non-salvage vehicle. These are some of the key things to look out for when you are making your purchase. As such, a second opinion from a qualified mechanic would do you some good. 

Purchasing salvage car insurance coverage 
Before you purchase coverage for a salvage car, ensure to carry out extensive research about insurers near you in order to get the best quotes. You have to know that insuring a salvage vehicle may prove a little hectic. It is imperative to note, however, that some policy providers may offer coverage while others may not. What’s more, others may charge higher premiums, which is why you need to compare different rates. 

Fixing a salvage vehicle 
When you settle on buying a salvage car, you should have in mind the repair costs that you will have to cover to get the car in a working condition. It is advisable, therefore, to check the repair estimate of the salvage lot, keeping in mind that the damages on your car may or may not be fixed. This all depends on your dealer. By getting this estimate, you get an estimate of the amount of money you will spend on repairs before deciding on buying the car. 

Moreover, you have to be at par with your state regulations. You need to note that some states prohibit the driving of a salvaged vehicle on the road. You can get more information about this from your state insurance commissioner. You must have this information before you commit to buying and fixing a salvage car. 

Is It Okay To Buy A Car With A Rebuilt Status? 
A vehicle that has this kind of title status already has its damages repaired. However, it has to have undergone a thorough inspection before the status of the title is changed. This is not to mean that the repairs have been done to the expected standards. That is why you should consult a skilled mechanic. 

People prefer purchasing cars with this kind of title because they sell at cheaper prices. That notwithstanding, you have to note that selling a vehicle with this type of title may prove a little difficult than other ordinary vehicles. 

Purchasing car insurance with a rebuilt status 
There are certain regulations in place that man the coverage provided to vehicles that have been rebuilt. For instance, getting full insurance coverage may be a little hectic. However, you can still buy liability and collision coverage with ease. The problem with getting full coverage is that it is hard to know the actual value of cars with rebuilt titles. Moreover, the majority of the states need liability cover at its bare minimum, rendering your vehicle unsuitable for driving on the road. Despite this, you can still check for insurers near you who can offer you the best rates. 

Things to Look Out for:
• The car’s accident history 
• Where and how was the vehicle repaired? 
• The reasoning of the previous owners to avoid fraudsters 
• Any hidden damages