Difference Between Salvage and Rebuilt Title (With Table)

Salvage and Rebuilt titles are both used car titles that often go unnoticed. Whenever we try to purchase a used car, the status of the car title is usually one of the main things not considered. Even though the two terms are sometimes used interchangeably, they have some significant legal differences from each other. 

Salvage vs Rebuilt Title 

The difference between Salvage and the Rebuilt title is that they have different legal standpoints. 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.  

When a car has been deemed unrepairable and not safe for driving anymore, the salvage title is assigned to it. The title is usually designated when a vehicle’s repair cost outweighs its market value, and the vehicle is considered totalled. Cars receiving salvage titles are either damaged in an accident, stolen, or deemed a total loss by their insurance company. 

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. A vehicle going from receiving a salvage title to a rebuilt title must be inspected and deemed safe to drive by someone from the state. Once a vehicle has been issued a rebuilt title, it cannot receive a clean title. The title will always bear the mark.  

Comparison Table Between Salvage and Rebuilt Title  

  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 usually purchasable. However, scraps and other parts of the vehicle may be sold, depending on their condition.  

The title is usually designated when a vehicle’s repair cost outweighs its market value when the vehicle is considered totalled. 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 usually the one that decides whether the vehicle is a total loss or not. Therefore, it is not safe to drive at all. States generally have different laws about what constitutes a salvage title. 

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. Cars with a rebuilt title can be purchasable depending on their condition.  

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. A vehicle transitioning from receiving a salvage title to a rebuilt title must be inspected and deemed safe to drive by someone from the state.  

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. The title makes the buyer aware of the value and condition of the vehicle.  

Major Differences Between Salvage and Rebuilt Title

  1. When a car has been deemed unrepairable and not safe for driving anymore, the salvage title is assigned to it. On the other hand, Cars with salvage titles can receive rebuilt titles if they have been restored. 
  2. Salvage titled cars is not usually purchasable, whereas rebuilt titled cars can be purchasable depending on their conditions. 
  3. Salvage titled cars is not safe for driving, whereas rebuilt titled cars can be safe for driving depending on the situation of the car. 
  4. 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. 
  5. 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. 

Conclusion 

Salvage and Rebuilt titles are both used car titles that often go unnoticed. Whenever we try to purchase a used car, the status of the car title is usually one of the main things not considered. Even though the two terms are sometimes used interchangeably, they have some significant legal differences from each other. 

When a car has been deemed unrepairable and not safe for driving anymore, the salvage title is assigned to it. The insurance company will determine whether it is more cost-effective to pay for repairs or fully compensate the driver to replace their car. The insurance company is usually the one that decides whether the vehicle is a total loss or not. Therefore, it is not safe to drive at all. 

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. A vehicle transitioning from receiving a salvage title to a rebuilt title must be inspected and deemed safe to drive by someone from the state. Cars with rebuilt titles are given the rebuilt title allowing them to sell at a lower price. 

References 

  1. http://www.rrcarsales.com/blog/ 
  2. https://uknowledge.uky.edu/ktc_researchreports/1677/ 
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