What Does a Rebuilt Title Mean?

A rebuilt title is a title issued by a state Department of Motor Vehicles (DMV) office that certifies that a previously salvaged vehicle meets all safety, emissions and inspection standards required by law. Rebuilt titles represent a key part of the used-vehicle market as they advertise vehicles that have passed rigorous safety inspections, allowing buyers to purchase these cars at lower-than-average prices.

Why Are Rebuilt Titles Issued?

Rebuilt titles are typically issued in two scenarios. In the first, and most prominent, the title is issued for vehicles formerly considered a total loss by insurance companies due to damage from an accident, severe weather, theft or other circumstances that would make their repair cost exceed the value of the car. These cars are owned by insurance companies and taken to salvage yards or concourses that rebuild and refurbish these parts to make them suitable for use once again. The cars are then officially awarded a rebuilt title, making them ready for distribution for resale on the market.

The second scenario involves cars with modifications or additions added to them, such as after-market engines or transmissions. As long as these updated parts are verified and certified to comply with safety and inspection requirements of the DMV, they are given a rebuilt title and up for sale.

What Happens When You Purchase a Rebuilt Title Vehicle?

When you purchase a vehicle with a rebuilt title, you are buying a car with a verified badge of safety, provided all DMV guidelines have been followed. Before its rebuilt title is issued, the car must meet emissions and safety standards, pass a mechanical inspection and obtain a Vehicle Identification Number (VIN), if it was not already present. The rebuilt title is also a clear indication that all repairs made to the vehicle have been executed by experienced, certified technicians or mechanics.

Unlike a salvaged title, a rebuilt title does not designate the car as invasive or irreparable, nor does it prevent a buyer from using it for long-distance travels or commercial purposes.

The main drawback to a rebuilt title car is that, although some states may not require, you may be unable to obtain insurance coverage for the car at a dependable rate. Insurance companies typically see rebuilt title cars as a greater risk as the car’s long-term integrity and mechanical life-span are less predictable.

All in all, when it comes to buying a vehicle with an officially issued rebuilt title, you can be confident that the car has passed rigorous quality and safety checks, allowing you to secure the car of your choice at a lower price than you’d expect to pay.