Salvage and Rebuilt titles are both used car titles that go unnoticed. Whenever we try to purchase a used car, the status of the car title is one of the main things not considered.
Key Takeaways
- A salvage title applies to a vehicle deemed a total loss by an insurance company, while a rebuilt title indicates a previously salvaged vehicle has been repaired.
- Salvage title vehicles damage significantly, while rebuilt title vehicles must pass inspections to ensure roadworthiness.
- Buying a salvage title vehicle entails higher risk, while a rebuilt title vehicle can offer cost savings compared to a clean title counterpart.
Salvage vs Rebuilt Title
A car with a salvage title can be dangerous as it has undergone major accidents which have damaged the vehicle. Its repair costs surpass the market value, making it unsuitable for purchase. A car is given the rebuilt title when the damage to the vehicle has been repaired again for safe driving. Salvage cars are reconstructed and sold at a lower price.
The title is designated when a vehicle’s repair cost outweighs its market value, and the vehicle is considered totalled.
Cars with salvage titles can receive rebuilt titles if they have been repaired. This provides the buyer with information about the vehicle’s previous history.
Comparison Table
| Parameters of Comparison | Salvage Title | Rebuilt Title |
|---|---|---|
| Safety | Not safe for driving anymore. | It has been rebuilt and is safe for use again. |
| Legal standpoint | Given to vehicles that have been in major accidents. | Assigned to cars formerly with salvage titles but reconstructed to a roadworthy state. |
| Sell | Only scraps and other parts can be sold. | Sold at a lower price. |
| Definition | When a car has been deemed unrepairable and not safe for driving anymore, the salvage title is assigned to it. | Cars with salvage titles can receive rebuilt titles if they have been repaired. This provides the buyer with information about the vehicle’s previous history. |
| Purchase. | Is not purchasable at all. | It is purchasable depending on its situation. |
What is Salvage Title?
When a car has been deemed unrepairable and not safe for driving anymore, the salvage title is assigned to it. This type of car is not purchasable.
The insurance company will determine whether it is more cost-effective to pay for repairs or fully compensate the driver to replace their car.
Cars receiving salvage titles are either damaged in an accident, stolen, or deemed a total loss by their insurance company. The insurance company is the one that decides whether the vehicle is a total loss or not.
What is Rebuilt Title?
Cars with salvage titles can receive rebuilt titles if they have been restored. This provides the buyer with information about the vehicle’s previous history.
In some states, the vehicle needs to pass several tests to receive a rebuilt title. However, in other states, prospective buyers might not be required to know the history of a vehicle.
Once a vehicle has received a rebuilt title, it cannot receive a clean title. The title will always bear the mark. Cars with rebuilt titles are given the rebuilt title, allowing them to sell at a lower price.
Major Differences Between Salvage and Rebuilt Title
- Salvage titles are given to vehicles that have been in major accidents and have been deemed a total loss by their insurers. On the other hand, Rebuilt titles are assigned to cars formerly with salvage titles but reconstructed to a roadworthy state.
- Salvage-titled cars’ scraps and other parts can be sold depending on their condition. On the other hand, Rebuilt-titled vehicles can be sold at a lower price.
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