Most people are concerned with the condition, price, and mileage of a vehicle when they buy it. But one document tells you more than any test-drive about its past: The title. The title of a car is more than just paperwork. It’s an official document that details ownership history, and most importantly, if the vehicle has suffered major damage. It’s important to know the difference between salvage and rebuilt titles in order to avoid any unexpected issues and make a wise investment.
1. What is a vehicle title?
The Department of Motor Vehicles or an equivalent agency issues a vehicle title. The title certifies ownership, as well as providing key information about the vehicle such its make, model and year. It also includes a Vehicle Identification Number (VIN). The title can include information about the history of the vehicle, such as if it was involved in an incident, flood or another event that required major repairs.
The title of a vehicle is essentially a window to its past. It tells you if the car has been in original condition, or if it’s been damaged and repaired.
2. Clean Title: Ideal Scenario
If the title is clean, it means that the vehicle has not been declared a loss by any insurance company. This indicates that there has been no significant structural damage to the car, nor have major repairs or flood exposure affected its safety or value.
Clean titles on cars are usually the most sought-after because they carry a lower risk. Even with a clear title, you should still do your due diligence. It’s important to do your due diligence even if the title is clean. Minor accidents or cosmetic repair may not be listed. Before purchasing a car, always request a history report.
3. What it really means to have a Salvage title
When a vehicle is severely damaged, often by accident, fire or flood, and the cost of repairing it exceeds 70-80% of its value, a salvage title will be issued. The insurance company will declare the vehicle “total loss” in these situations.
The car cannot be driven legally until it has been repaired and inspected. Salvage title is a warning that the vehicle has suffered serious damage.
Salvage titles:
- The resale price of a vehicle is significantly reduced.
- Insurance coverage can be expensive or limited.
- It can be difficult to finance a salvage vehicle.
The lower price might seem attractive, but the quality and extent of the repairs may vary greatly. Some salvage vehicles have been professionally restored, but others could hide structural flaws that later reappear.
4. Rebuilt title: A second chance for damaged cars
Rebuilt titles (also called “reconstructed”, “restored” or “reconstructed”) are issued to cars that previously had a salvage title, but have been inspected and approved by the state for use on the road. It’s basically a salvage vehicle that has been restored to life.
Rebuilt titles are safe and reliable, but there are still some things to consider:
- These cars have a lower resale price than clean-title vehicles.
- Some insurance companies require extra documentation or may charge higher rates.
- It is possible that some hidden damages may not be visible at first.
Ask for detailed records of repairs and have an experienced mechanic inspect the vehicle before you buy.
5. What you need to know about car titles when buying used cars
Understanding the different types of car titles can protect you against financial and safety hazards. Clean titles are usually less problematic, but other options can be equally as risky.
For buyers with mechanical skills or who don’t mind extra maintenance, salvage and rebuilt vehicles are often a great deal. For most buyers, however, clean-title cars are the most safe and straightforward option.
Final Thoughts
The title is the best way to learn about used cars. You can’t see what’s under the hood. Understanding the difference between salvage and rebuilt titles will help you make informed decisions and avoid unpleasant surprises.
Always check the vehicle history and the title before making a purchase. Also, have the car inspected by an expert. You can avoid costly repairs by doing some research and ensuring that your next vehicle is reliable for many years.
This post was written by a professional at Redemption Auto Sales. Used Car Lots In St Petersburg Florida is a trusted used car dealership located at 11001 Seminole Blvd in Largo, FL. Serving Pinellas County, they offer a wide selection of quality used cars, trucks, SUVs, and vans. As a certified Carfax dealer, every vehicle comes with a detailed history report. They provide flexible financing, accept trade-ins, and are committed to a hassle-free, no-haggle buying experience. Visit 200autos.com or call (727) 200-2468 to learn more.
