When shopping for used cars, you often come across vehicles with a “Salvage Title” or “Rebuilt Title.” Let’s briefly discuss what each of these titles are, and take a closer look at the differences of the two types.
What is a Salvage Title?
A vehicle will become a salvage title after being “totaled” – meaning, the vehicle has sustained enough damage that the cost of repairs outweighs the market value of that vehicle.
A salvage title is typically issued by an insurance company when they deem it unrepairable.
The most common reasons a vehicle gains a salvage title are:
- An accident or wreck
- Weather or flood damage
- Theft of the vehicle
When a vehicle with this title is repaired and deemed roadworthy, it will receive a rebuilt title.
What is a Rebuilt Title?
A rebuilt title tells the consumer who is interested in purchasing the vehicle that it was once a salvage title vehicle.
To gain a rebuilt title after being a salvage title, the owner of the vehicle must have it repaired and inspected to ensure that it is safe for the road.
A vehicle that carries a rebuilt title will typically have 20-40% less market value than that of the same vehicle with a clean title, since it has a history of damage and repairs.
Not sure where your vehicle falls?
Feel free to give us a call at 1-844-400-MORE for more information on the types of titles your vehicle may have.
