What Is a Rebuilt Car Title, & What Are the Benefits & Drawbacks for the Consumer

Most people won’t go to a salon and choose a new car if they need an inexpensive one. There are a huge number of dealers on the market that can offer well-used goods. Also, you can find super low prices on the Internet, 40 or even 50% cheaper than other models of the same manufacturer. Do not rush to be too happy. Most likely it is a rebuilt car title.

For some people, the status of the car is of great importance, for others, it is not. Some believe that such cars can be even better than used cars with a clean status, while others will not even look in the direction of such a car. Who is right, is it worth buying such cars, what are their disadvantages and whether there are pluses, we will figure it out.

Read A Complete Guide to Buying a Car With a Rebuilt Title on American-reia.com.

What Does a Rebuilt Car Title Mean?

To begin with, let’s be clear, what does rebuilt title mean? These are cars that have been in accidents, suffered natural disasters, or were damaged in another way, such as by vandals, hijackers, etc. Such cars are assigned the status of “decommissioned”.

This status is assigned exclusively by the insurance company. Its specialists inspect the car after the accident and determine the degree of damage and the cost of repairs. If the specialist considers that the repair will cost too much, and it is not profitable to restore the car, it should be sent for recycling.

From this moment, some cars begin a second life. They can be bought either for spare parts for repairs or for restoration. Restoration of cars is carried out either by specialized companies with modern services, equipment, and professionals on staff or by garage craftsmen in their home workshops. This is quite a significant point. A rebuilt title is given to both cars, but the quality of repair and restoration is very different.

Now consider another important point: how much does a rebuilt title devalue a car? A car restored after the status of “decommissioned” loses in price an average of 20 to 40 percent. It may not seem like much to you, given that the car was considered beyond repair. The difference can be measured in thousands of dollars. And one more nuance – a carfax is quite significant.

How To Choose a Car With Restored Status

You already know what a rebuilt car title is and you are not afraid of buying a rebuilt title car, but you should not choose a car exclusively at the lowest price. To choose the best car with restored status, you need to know the following things about it.

Why Did the Car Get Into the Status of “Decommissioned”

The fact is that different incidents affect the car’s condition in different ways. In the case of an accident with minor damage but a malfunctioning part or system, the insurance company may decide not to repair the car. Profile companies buy such a car and restore it. In other words, you know, what is a rebuilt title on a car, but in fact, the car can be in very good working condition. But if the car survived a flood or a fire, then problems may arise later. Corrosion and other damage to the metal may not be noticeable at the first inspection, but after a while, they will show themselves. Then the repair will have to invest significantly.

Who, When, & Where Restored the Car

A rebuilt title is bad if the car was repaired in artisanal conditions. That is, low-quality spare parts were installed on it, and the work was carried out at an insufficient level. But that’s not the only reason why a car isn’t good enough or outright bad. If the frame was damaged, it could have been welded incorrectly. At the first examination, this may not be visible, but then such a shortcoming will make itself felt. Problems may lie in other details. Request a receipt for all repairs to ensure that everything is done correctly. They describe all the work and also indicate the spare parts that were in use.

Car Inspection

All vehicles with restored status must be inspected without fail. Only in this case, they are allowed to be in use. Most of the inspections are carried out by state responsible organizations. But it will not be superfluous to get the opinion of a third-party expert, a technician you trust.

It is also interesting that just used cars when selling do not have to undergo a mandatory inspection. That is, if you buy a car with a restored status, you are sure that it has already been checked, and an additional inspection is only your initiative. But if you just buy a used car, you have to take it to the service for your money, if you do not want to buy a pig in a poke.

Judge for yourself if it is bad to buy a car with a rebuilt title, we will simply objectively list the pros and cons of buying a car with a rebuilt title.

To Summarize, Is It Worth Buying a Car With a Restored Status?

Benefits of buying a restored car:

  • The low price is the first and foremost advantage – but it also has a downside, if the car is sold too cheaply and attention was not paid to its condition when buying, then you can seriously spend money on its repair. But in general, if in good condition, this is a bargain.
  • The car is not a pity – if the car is in good condition, you can buy it for an inexperienced driver. If, while parking, he scratches a new or expensive used car, it will be an elementary pity. If the car is inexpensive, you can gain experience with it. But, of course, provided that the car is serviceable and safe to operate.

Now let’s talk about the disadvantages:

  • A car with this status is very difficult to sell – if the car has a restored status and has been used after that, it is almost impossible to sell it, so consider whether you should buy a car with a rebuilt title if you are not going to drive it for a long time.
  • It is almost impossible to get a loan for such cars – but usually, the cost of these cars is low, so it may not be necessary to take credit money for it.
  • For cars that have received the status of “decommissioned”, the guarantee from the seller and the manufacturer is canceled – even if a completely new car is seriously damaged, the guarantee for it ceases to be valid after major accidents and the conclusion of the insurance company.
  • Insuring a car with a rebuilt title – few companies are ready to insure such cars. And even they only offer basic or minimal coverage.

Learn more about refurbished car insurance. Don’t assume that you can drive without a policy. To get pulled over without insurance is a serious violation in all countries and states. The punishment for it is regulated by law and depends on several factors. You need to know that you can even go to jail if you drive an uninsured car. Read more on businessyield.com.

What to do in this case? Knowing what is a rebuilt title, you should find a company that will consider insuring your car. Gather as much evidence as possible that the car is safe. This may be the conclusion of a reputable mechanic, a history of damage if they were minor but costly, etc.


In some cases, a rebuilt car can be a really good deal, as long as you have the full amount of the purchase and the insurance company is willing to provide you with the coverage you need. You should not unambiguously discard this option, but if possible, it is better to buy a car with a “clean” status. The car must still be carefully examined in both cases because just because it was not seriously damaged doesn’t necessarily mean it’s safe, fully functional, and doesn’t need repair.