Difference Between Salvage and Rebuilt Title

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.

Salvage vs Rebuilt Title 

The main 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.  

Salvage vs Rebuilt Title

The title is usually 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 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.

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.

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

  1. 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. 
  2. 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. 
Difference Between Salvage and Rebuilt Title

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.

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.

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.

References 

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