When buying a car, most people consider the price, condition and mileage. One document can tell you more about a vehicle’s past than any test drive: the title. A car’s title is more than paperwork. The title is an official document which details the ownership history of the car, as well as if it has sustained major damage. To avoid unexpected issues, it’s crucial to understand the difference between rebuilt and salvage titles.
1. What is the meaning of a vehicle’s title?
A vehicle title is issued by the Department of Motor Vehicles, or an agency equivalent. The title certifies the ownership of the vehicle and provides key information such as its make, model, and year. The title also contains a Vehicle Identification Number. The title may include details about the vehicle’s history, including if the vehicle was involved in an accident, a flood, or other event that required extensive repairs.
The title of a car is like a window into its past. The title of a car tells you whether it was in its original condition or if there have been damages and repairs.
2. Clean Title: Ideal Scenario
If the title of the car is clean, this means that it hasn’t been declared a total loss by an insurance company. It means that the vehicle has not suffered any significant structural damage, nor have major repair or flooding affected its value or safety.
The most desirable titles are those that have a low risk. You should do your due diligence even if the title is clear. Even if the title looks clean, it’s still important to perform your due diligence. It’s possible that minor cosmetic repairs or accidents are not listed. Always request a vehicle history report before purchasing a vehicle.
3. What it means to be a Salvage title
A salvage title is issued when a vehicle has been severely damaged by an accident, fire, or flood and the cost to repair it exceeds 70%-80% of its original value. In these cases, the insurance company will declare that vehicle a “total loss”.
It is illegal to drive a car until it has undergone an inspection and been repaired. The salvage title indicates that the vehicle is severely damaged.
Salvage titles:
- Resale prices of vehicles are significantly reduced.
- Insurance can be costly or limited.
- Financing a salvage car can be difficult.
Although the lower price may seem appealing, the quality and extent the repairs can vary widely. Some salvage vehicles are professionally restored. Others may hide structural flaws which later appear.
4. Rebuilt title: a second chance for damaged vehicles
Rebuilt titles are given to vehicles that had previously been issued a salvage title but which have now been inspected by the state and approved for road use. This is a salvage car that’s been brought back to life.
There are some factors to consider when buying a rebuilt title.
- These vehicles have a lower resale value than vehicles with clean titles.
- Some insurance companies may require additional documentation or charge a higher rate if you don’t have it.
- Some hidden damage may not be apparent at first.
Before you purchase, ask for the detailed repair records and have a mechanic with experience inspect the vehicle.
5. When buying used cars, you should know the importance of car titles
Understanding the differences between car titles will protect you from financial and safety risks. While clean titles can often be less risky, other options are equally dangerous.
Salvage and rebuilt cars are often great deals for buyers who have mechanical skills or don’t mind additional maintenance. Clean-title vehicles are the best option for most buyers.
Final Thoughts
You can learn a lot about used cars by reading the title. It’s impossible to see under the hood. You can make better decisions and avoid unpleasant surprises by understanding the differences between salvaged and rebuilt titles.
Before making a purchase, always check the history of the vehicle and its title. Have the vehicle inspected by a professional. By doing research, you can save money on repairs and ensure that your next car is reliable for years.
This post was written by a professional at Redemption Auto Sales. Used Car Lots In St Petersburg Florida is a trusted used car dealership located at 11001 Seminole Blvd in Largo, FL. Serving Pinellas County, they offer a wide selection of quality used cars, trucks, SUVs, and vans. As a certified Carfax dealer, every vehicle comes with a detailed history report. They provide flexible financing, accept trade-ins, and are committed to a hassle-free, no-haggle buying experience. Visit 200autos.com or call (727) 200-2468 to learn more.
