Is it Safe to Buy a Car With a Rebuilt Title?
Your car's title contains important information about your vehicle, such as the VIN and previous owners. Vehicles with titles marked as "rebuilt" or "salvage" are often priced cheaper than those with a clear title -- leaving you tempted to purchase a rebuilt car in order to save money. Unfortunately, while a car with a rebuilt title may be cheaper than one with a clear title, previously rebuilt cars sometimes carry safety issues that you must consider before you sign the paperwork.
Other People Are Reading
-
How It Works
-
The terms "rebuilt" and "salvage" differ by state. While some states use the terms synonymously others, such as Michigan, have specific inspection requirements the owner must meet before the title converts from a salvage title to a rebuilt title. Regardless of whether the car's title notes that the vehicle is a salvage or rebuilt vehicle, the fact remains that, in order for the state to label the title as such, the car must have previously been wrecked. Vehicles that are wrecked, fixed and resold with a rebuilt title may pose a safety hazard for drivers.
Parts and Safety
-
Just because a car was fixed after an accident does not guarantee that the vehicle was property repaired. Investors who purchase cars after a collision often fix them using the cheapest parts possible in order to increase their profit from the vehicle's sale. Cheap aftermarket parts do not always carry the same reliability and safety guarantees as parts provided by the original manufacturer.
-
Physical Safety Hazards
-
Consumers sometimes make the mistake of believing that because the car runs fine, it is in perfect working order. Unfortunately, this is not always the case. The car could lack airbags or computerized safety features such as electronic stability control. Improperly locking seatbelts are also a potential safety hazard some consumers face after purchasing rebuilt vehicles.
Financial Security
-
Your safety is not solely determined by your physical well-being, but by your financial well-being as well. A car with a rebuilt title does not boast the same resale value as a vehicle with a clear title. In addition, some finance companies will not finance vehicles with rebuilt titles due to the higher risk that the vehicle will stop functioning in the future and the consumers, subsequently, will stop making payments. Insurance companies are also sometimes hesitant to insure previously rebuilt vehicles. If you live in a state that requires you to have automobile insurance, yet no insurance company will insure your rebuilt vehicle, you can purchase the car but you cannot legally drive it.
-
References
Resources
- Photo Credit Wreck image by Gudellaphoto from Fotolia.com
