A rebuilt car title is issued on a car that once had a salvage title attached to it. Salvage car titles are issued by the motor division in your state on cars that have incurred a significant amount of damage to the point where the amount of damage sustained by the car surpasses a very large percentage (usually 75%) of the cost of the car. Cars with salvage titles are usually sold to auto salvage dealer who then repair them in an effort to resell them.Before reselling them, the dealers have to obtain a new title which allows the car to legally operate on the roads.This title is called a rebuilt title.
Advantages of a rebuilt title
A rebuilt title is issued on any car that once held a salvage title. This is no indication that the car was reconstructed from different parts of various vehicles nor does it mean that the car had sustained devastating damage such as fire or flood. In fact the car may have sustained repairable damage and could now be in good condition. To ensure that the car you plan to purchase is in good enough condition, collect its vehicle identification number and use it to generate the car's history.
Rebuilt car titles in most states are only issued on cars where the salvage title had indicated that the vehicle was repairable thus it is safe to say that the vehicle would be in fairly good condition after being rebuilt.
Cars with rebuilt titles are good bargains. These cars are significantly cheaper than used or new cars and are in good working condition so they are a bargain all round.
Disadvantages of a rebuilt title
A rebuilt title can fool the buyer into thinking that the car was merely in a collision and has been repaired. Rebuilt titles, however, are issued for every repairable vehicle regardless of the type of damage sustained. This means that cars with engine damage may infiltrate the system if it is not properly regulated. Do the background checks on a car before buying.
Rebuilt car titles are only good for auto salvage dealers in terms of resale value. It is difficult to sell a car that was resold to you; therefore if the intention of buying a car with a rebuilt title is reselling it, do not do so as this caris more suited for personal use.