What Does a Rebuilt Title Mean?

A car with a rebuilt title can cost up to 40 percent less than a new one.

A rebuilt title can mean different things in different states, but one fact is universal: Once a car earns a rebuilt title, it'll show up in its history report forever and taint its good reputation.

Identification

A rebuilt title --- or a salvage or reconstructed title --- is placed on a vehicle after it's been severely damaged and rebuilt or restored using refurbished parts and placed back on the road in drivable condition.

Circumstances

A car can acquire a rebuilt title after an insurance company declares it a total loss, and the owner would have to pay more to repair it than it's worth. A rebuilt title is also issued after a car has been impounded or seized and then sold to an auto repair shop, a junk yard or put up for auction.

Considerations

Some states require that anyone buying a salvage vehicle who intends to restore it hold a license as a re-builder. In most states, a rebuilt car must be inspected before it can be put back on the road. A person buying a rebuilt car should intend to keep it since selling it may prove difficult.

References

• CarInsurance.com: What Is a Rebuilt Title or a Salvage Title?
• Autos.com: 4 Things to Know About a Rebuilt Car Title
• Autos.com: Pros vs. Cons of a Rebuilt Car Title

Resources

• AutoEducation.com: How to Buy Rebuilt Cars