What Is a Rebuilt Auto Title?

Rebuilt wrecked cars are issued rebuilt auto titles.

According to the National Association of Consumer Advocates, an association of attorneys who represent consumers deceived by fraudulent business practices, approximately one million rebuilt vehicles return to the road each year. These vehicles are issued rebuilt auto titles by the Department of Motor Vehicles.

Identification

When a vehicle suffers severe damage, such as from a crash or flood, and is declared a total loss by the insurance company, it becomes a salvage vehicle and is issued a salvage title. A rebuilt title is issued if a salvage vehicle is repaired and restored to operation.

Considerations

The specific guidelines for rebuilt titles vary by state. Rebuilt vehicles must pass an inspection by a state-licensed inspection agency for a rebuilt title to be issued for the vehicle in most states. If the rebuilt vehicle passes inspection, it is legal to be driven on the highways.

Warnings

According to the Consumer Reports website, rebuilt autos may not be mechanically sound. Rebuilders may cut costs to make a profit and the repaired vehicle may not be reliable. Before purchasing a rebuilt vehicle, it is wise to have a trusted mechanic thoroughly check it out.

References

• Consumer Reports: The problem of rebuilt wrecks
• Carfax: Glossary of Terms
• Car Insurance: What is a rebuilt title or a salvage title?