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5–8 minutes

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Key takeaways

  • Rebuilt vehicles were previously salvaged but repaired, inspected, and approved for road use.
  • They carry more risk than clean titles but can be a good value for budget-conscious long-term buyers.
  • To avoid fraud and protect yourself, check the vehicle history, get an inspection, and review insurance options.

What does a rebuilt title mean?

A rebuilt title (also called a rebuilt salvage title) means the vehicle was once damaged and declared a total loss. It has since been repaired and is now safe to register and drive. Not all vehicles are safe to repair –  some may need to be junked or salvaged instead. 

To get rebuilt title status, an accredited body shop must repair the vehicle. A local DMV or similar authority usually performs a follow-up salvage vehicle inspection to confirm the vehicle is safe to drive before changing the title from salvage to rebuilt. 

Rebuilt vehicles have a lower market value because of their damage history. A prior-salvage history creates risk and uncertainty for buyers, lenders and insurers.

What to do before buying a rebuilt title car

Before buying a rebuilt title car, you should: 

  • Arrange a pre-purchase inspection 
  • Generate a NMVTIS report or vehicle history report 
  • Research insurance options 

This will give you a clear picture of the vehicle’s history. Understanding the extent of previous damage and repairs will help you decide whether or not it’s a good investment.

pre-purchase checklist for rebuilt and used vehicles

Pre-Purchase Inspection

Pre-purchase vehicle inspections are performed by registered body shops and specialized inspection providers. 

Inspections usually include a test drive and internal and external assessment of the vehicle. This can help you detect signs of flood damage, faulty repairs and fault codes in the vehicle’s computer system that may not be obvious without an inspection. 

Examples of components checked include: 

  • Brakes
  • Body panels
  • Paint
  • Suspension components
  • Instrument panels
  • Climate control
  • Airbags
  • Wheel alignment
  • Frame rails

Assessing for hidden flood damage is an important part of the process.

ST Billingsley, owner of Steve’s Auto Repair in Woodbridge, Virginia.

“Sometimes you can tell if it’s a flood car, sometimes you can’t. Mud inside the frame rails is a good indicator that a vehicle was in a flood” explains ST Billingsley, owner of Steve’s Auto Repair in Woodbridge, Virginia.

Scanning the vehicle’s computer for codes is also essential. For newer models, the process can be even more in depth. 

“Shops that have an updated scan tool will most likely have one that does a topology scan.”

These look at the transmission and a/c control modules and flag potential issues, so your inspector can then pull the codes and get a more detailed picture of the vehicle’s safety. It can also help protect you against dishonest sellers.

“If a shop is using a code checker and they see the emissions monitors have not completed, that is a red flag. The trick is they [seller] will clear the codes, so when you take it to a place it doesn’t show any codes. But that’s an indicator that there could be an underlying problem.”

Reports

Vehicle history reports and NMVTIS reports can give you a clearer picture of a vehicle’s life and provide peace of mind about your investment.

NMVTIS (National Motor Vehicle Title Information System) reports provide a surface-level view at important things like: 

  • Title brands
  • Odometer discrepancies 
  • If a vehicle had a total loss event

Providers like Carfax and Autocheck can give you access for as little as a few dollars. 

Vehicle history reports are more intensive and reveal:

  • Full accident history
  • Service and maintenance records
  • Registration and title events (e.g title brands and title transfers)
  • Auction and sales activity

They pull information from private and public data sources like DMV’s, police departments, insurance companies and repair shops. 

Examples of a Vehicle History Report, showing accident damage, maintenance schedule, title brands, owner history, and more. Credit: Autocheck by Experian

Anyone can request an NMVTIS report and a vehicle history report online. You’ll need the vehicle’s VIN, year/make/model, and sometimes additional information like license plate number and state of registration.

Services, costs and timelines at a glance

Report typeAverage costProcessing timeWhat’s included
NMVTIS report$5-$15Instant Title status, salvage/junk/rebuilt branding, total-loss records, theft records, odometer inconsistencies, participating state DMV data
Vehicle History Report$25-$45InstantAccident history, title history, ownership history, service & maintenance records, mileage timeline, recall info, registration history, some auction/sales activity

Research Insurance Providers 

Insuring a rebuilt title car can be difficult – that’s why it’s important to check what providers and coverage options are available.

Comprehensive and/or collision coverage can be harder to get, or are only available with strict conditions.

Is a rebuilt title bad? Risks vs benefits

Verdict: Buy a rebuilt car if you’re a cash buyer looking for a second-hand car you can keep long-term. You should also be willing to pay extra to have your repairs verified.

If you’re thinking of buying a rebuilt title car, you’ll need to decide what to do with your current vehicle. If it’s running or not, you can still get a fair price from a salvage or junk buyer before making the switch. 

Here’s when to know if buying a rebuilt title car makes sense and what to consider pre-purchase.

rebuilt title - pros and cons graphic
Purchase ifDon’t purchase if
You want to save money. (these vehicles are cheap and great for small budgets). You plan to resell the vehicle. (a low resale value means you’ll lose money). 
You can pay upfront. (it’s hard to get auto loans for rebuilt cars – cash payments are easier). You need an auto loan. (you’re unlikely to be accepted for an auto loan on a rebuilt title car).
You plan to keep it long-term. (resale value is low – you’ll get the most value by keeping the car long-term).You want comprehensive insurance. (this coverage is harder to get – it usually comes with strict conditions, or you may have to settle for liability only).
You’re willing to pay extra to check its history and verify the repairs. (more risk must be offset by more thorough pre-purchase checks). You want a vehicle with minimal risk and long life. (rebuilt vehicles are safe to drive, but total loss history may increase the risk of future damage or component failure). 

Rebuilt vs salvage title explained

A rebuilt vehicle title is not the same as a salvage title. 

Salvage title 

‘Salvage’ is a title brand given to vehicles that have been considered a ‘total loss’ by an insurance company. This means the repair cost exceeds thresholds set by insurers or state law.

Salvage cars have often been involved in collisions, floods, fires or thefts. Depending on the damage, many salvage cars can be repaired and driven on public roads following stringent repair and inspection processes. 

Once repaired and passed inspection, a salvage title car can be issued a rebuilt title (sometimes called a reconstructed title). However, the salvage title brand will always appear on the vehicle’s history.

Rebuilt title

A vehicle with a rebuilt title was once a salvage title car, but it has since been repaired, inspected and branded with a rebuilt title.

Unlike a salvage title car, a rebuilt title car can be driven on public roads, registered, and insured.