Are you considering buying a car with a rebuilt title? These vehicles can be a lot cheaper than ones with clean titles, but they also come with risks. 

Before you make a decision, our California lemon law attorney breaks down what a rebuilt title really is and what it could mean for you down the road. Learn more below!

 

What Does a Rebuilt Title Mean?

A rebuilt title refers to a vehicle that was previously declared a total loss by an insurance company but has since been repaired and deemed roadworthy. Before a salvage title can be converted to a rebuilt title, the car must pass inspections to ensure it meets safety standards.

 

Rebuilt vs. Salvage Title

A salvage title is given to a car when an insurance company decides it’s too expensive to fix compared to its value. Vehicles with salvage titles aren’t safe to drive until they’re repaired. 

After a salvage-title car is repaired and passes inspection, it gets a rebuilt title; this means it’s safe for road use but still has a history of past damage. 

 

Should I Buy a Car with a Rebuilt Title?

The short answer is generally no. While a car with a rebuilt title might be cheaper, the risks often outweigh the savings. Here’s why:

 

Safety Concerns

Even though a vehicle with a rebuilt title has passed inspection, the repairs aren’t guaranteed to be up to the same standards as those on a factory vehicle. Some issues might be hidden and could be potentially hazardous.

 

Resale Value

Cars with rebuilt titles typically have a lower resale value — usually 20% to 40% — than those with clean titles. Prospective buyers may be wary of the rebuilt title designation if you plan to sell the vehicle later.

 

Insurance Issues

Many insurance companies are hesitant to provide full coverage for vehicles with rebuilt titles. You may end up with limited options for insurance, often only receiving liability coverage, which could leave you financially vulnerable in the event of an accident.

 

Hidden Costs

While the initial price may be lower, you could face unexpected repair costs later. If the vehicle has underlying issues that weren’t addressed during the rebuilding process, you might end up spending more money than you saved. 

 

Why Would a Car Have a Rebuilt Title?

Knowing why a car received a rebuilt title can help you understand the risks of buying one. A few common reasons include: 

• Major Accidents: If a vehicle is involved in a serious collision and the repair costs exceed its value, the insurance company will likely declare it a total loss. 
• Flood Damage: Vehicles that have been submerged in water may receive a salvage title due to potential electrical and mechanical issues. 
• Theft Recovery: If a stolen car is found but has damage from the theft, it might be declared a total loss. 
• Cosmetic Damage: In some cases, a vehicle may be totaled because fixing cosmetic issues, like hail damage, is too expensive. 

 

Can You Get Full Coverage on a Rebuilt Title?

As mentioned above, getting full insurance for a car with a rebuilt title can be somewhat of a challenge. 

Most insurance companies are reluctant to provide coverage due to the car’s history. That being said, if you do find coverage, you may face higher premiums because insurers view these cars as higher risk, which is reflected in the cost of coverage. 

Additionally, some insurers may require an independent inspection by a certified mechanic before they issue a policy, which is just another added step and cost. 

 

Do You Have a Defective 2020 or Newer Vehicle?

Buying a car with a rebuilt title means balancing potential savings against possible risks. While the lower price point may be tempting, the long-term costs and safety concerns can make it a risky choice. 

At Norman Taylor & Associates, we stand up for consumers and offer expert legal guidance on vehicles with repeated warranty defects. It’s important to note that as of 2024, California Lemon Law remedies no longer apply to used cars. 

Whether you have questions about your rights or need help navigating the process, call 818-244-3905 or contact our California firm today!

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