Offers for your vehicle in 30 seconds
- Damaged Cars
- Mechanical Issues
- Broken Vehicles
- Non-starters
- Free Collection
- Fast & Easy Process
When is it ok to buy a rebuilt title car?
Rebuilt title cars often sell for 20–40% less than clean-title vehicles, making them an attractive option for budget-conscious buyers. But with those savings come important questions about safety, insurance, and long-term value. When is it ok to buy a rebuilt car, and when is the risk worth the reward?
Here’s a quick breakdown of when buying a rebuilt car might make sense, and when it may not.
Consider a rebuilt car if…
Is it safe to buy a rebuilt title car?
Yes, rebuilt title cars are generally safe, and there’s a big market for them. However, they’re only safe if they’ve been repaired by a competent mechanic and have passed state inspection.
To ensure your once salvage car has been repaired and rebuilt to a high standard, check the paperwork to confirm the parts used, the repairer’s name, total labor hours, and obtain the rebuilt inspection certificate.
You can also inspect the quality of the repairs yourself by asking these key questions:
- Are there warning lights on the dashboard?
- Do the body panels line up evenly?
- Do the doors, hood, and trunk all open and close smoothly?
We highly recommend requesting a pre-purchase inspection (PPI) from a mechanic who will check for structural damage, look for hidden rust and flood damage, scan the onboard computer for error codes, test the suspension, steering and brakes under load, and much more, to give you peace of mind that you’ll be investing in a safe vehicle.
Some tips for buying a quality rebuilt title car include:
- Look for low mileage: This often indicates less wear and tear, more years left on the road, and a potentially higher resale value.
- Good service history: You may not always be able to get a complete service history, but getting as much as you can will give you an insight into how well the car has been looked after throughout its life, making it a safer investment.
- Consider prior damage: When the vehicle was previously totaled, what was the extent of the damage? Some accidents, such as floods, are most likely to cause hidden damage to electrical systems that may not show up until months later.
The pros and cons of buying a rebuilt title car
Pros
- Lower upfront cost: The price of your rebuilt car can be 20%-40% cheaper than a clean-title equivalent.
- Inspected and legal: Unlike salvage cars, rebuilt cars have passed DMV/state inspections and are considered roadworthy.
- Opportunity for transparency: You can confirm the car’s condition before committing through vehicle history reports, pre-purchase inspections, and repair documentation.
Cons
- Lower resale value: This can be anywhere between 20%-50% less than a clean title car, with limited trade-in options.
- Insurance limitations: Comprehensive and collision insurance can be harder to get, and premiums may be higher.
- Financing challenges: If you’re not prepared to pay cash, you may struggle to find a bank or lender that will finance a rebuilt title, or you’ll pay a higher down payment and/or premium.
- Extra diligence required: If you’re purchasing from a private seller, you’ll need to be careful not to get burned by fraudulent listings. Be prepared to pay for inspections, dig into reports, and confirm the quality of repairs.
Can you insure a rebuilt title car?
Yes – you can usually insure a rebuilt title car, but your options may be limited and you may pay higher premiums. Liability coverage is almost always available, but getting comprehensive or collision coverage may be more challenging. Check your options with your preferred insurer.
Liability coverage: This is required by most states and is easier to obtain, as most insurers are more willing to cover the damage you might cause to others than the car itself.
Comprehensive coverage: Providers willing to offer comprehensive coverage, which covers non-collision damage to your car, often from events outside of your control, such as a fire or flood, may want you to provide evidence that the car is safe to drive. We recommend employing a competent, trusted mechanic to inspect the vehicle and provide a report before you insure it.
Collision coverage: Collision coverage, which covers damage to your own vehicle from an accident where you collide with another vehicle or object, can be harder to get, as it pays to repair your vehicle after an accident. As a rebuilt vehicle has already been repaired, insurers may worry about hidden weaknesses that could make the vehicle unsafe or more costly to fix if it gets into another accident.
Although it’s easier to insure a rebuilt title car than it is to insure a salvage title car, most insurers still see rebuilt vehicles as high risk due to potential future issues. That said, liability insurance is usually enough to get you on the road in most states.
Does a rebuilt title affect financing?
If you try to finance a salvage title car, you’ll find very few options available, and unfortunately, the same goes for rebuilt title cars.
While some smaller lenders or credit unions may be willing to finance them, you may face higher interest rates or larger down payments.
Lenders and banks manage risk, and unfortunately for you, they perceive a rebuilt title as more likely to depreciate or incur damage. If they ever need to repossess the vehicle and sell it on to recoup their losses, they’re unlikely to make as much as they would from a clean-title equivalent. That’s why many rebuilt buyers pay cash.
If you can’t afford cash, you can always try a personal loan. However, interest rates on personal loans can be higher than auto loans, especially if you don’t have a strong credit score. Most banks and online lenders cap personal loans, which may also make it harder to finance a higher-value rebuilt car.
To increase your chances of being approved for an auto loan, get a trusted mechanic to inspect your car and confirm that it is safe, ensure you have good credit, and provide evidence that your vehicle is insured. Check your options with individual lenders.
Can you sell a rebuilt title car?
Thinking of selling a rebuilt title car? General estimates in the auto and insurance industries show a 20-50% drop in value for rebuilt title cars compared to clean title counterparts.
If you’re going to resell a rebuilt title car within a few years of purchase, you’re likely to sell it for less than you paid, even if it runs well. If you keep it for the long-term, the upfront savings may offset the losses. Rebuilt cars make the most sense if you plan to run them into the ground, not if you plan to resell them.
There’s also the possibility of trading in your rebuilt car, but prepare for a lower trade-in value. Many dealers see rebuilt vehicles as high risk and hard to sell, so even if they do take it, you’re unlikely to get a high offer.
If you do want to sell a rebuilt title car, it’s often easier to use a broker like Wheelsaway that can provide an instant quote, connect you with buyers, offer same or next-day pickup, minimal paperwork, and support from start to finish.
What is a rebuilt title?
A rebuilt title means that the car was once declared a total loss by an insurance company, but has since been professionally repaired, inspected by the DMV, and declared safe to get back on the road.
Even after it’s been inspected and repaired, a rebuilt car will carry a permanent record of its damage, something that can impact insurance options, finance opportunities, and resale value.
To understand the full extent of the damage, obtain a Vehicle History Report from a trusted provider such as Carfax, using the Vehicle Identification Number (VIN). These reports outline critical details, including:
- The severity and type of accident
- The nature of the damage,
- Whether the airbags were deployed.
Typically costing between $20 and $50, these reports are a worthwhile investment to ensure transparency and protect yourself from fraudulent sellers.
What’s the difference between a rebuilt title and salvage title?
Although often confused, a salvage title and rebuilt title mean different things.
A salvage title is given to a vehicle that is totaled and cannot be legally driven. Essentially, it’s what your rebuilt title vehicle was before it was repaired. Vehicles are given salvage titles when they are involved in accidents of varying severity, floods, or are stolen and later recovered.
A rebuilt title is only issued once a salvage title car is repaired and passes a state inspection.
Final thoughts
Buying a rebuilt car can be smart, but only in certain circumstances. They aren’t for everyone, but with the right investment and due diligence, they can be a safe and affordable way to get behind the wheel.