What is a Salvage Title? What is a Rebuilt Title?

posted in: Guides | 0

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.