Used car title question

[Jerry1]

I’ve been looking at cars on Facebook marketplace for my grandson. I don’t really intend on buying through FB, but I’m trying to get an idea of the market and what I can get for under $5K. Anyway, I frequently come across cars that say they have a rebuilt title. I’m guessing that can mean a lot of things, but is there a general situation or two that call for the title to be rebuilt? I’m guessing it was totaled and then repaired or flood damage and then “laundered” to make it look like the title is good. Either way, I’m thinking it’s something to run away from but thought I’d ask here. The good news is that, at least here in MI, a rebuilt title is a different color than a clean title.

 

[OldShooter]

... I’m thinking it’s something to run away from ...

Yes. A flood car is particularly dangerous because of hidden corrosion damage developing in the electrical connectors.

 

[COcheesehead]

Lot of hurricane cars.

 

[snappytom]

Personally I would stay away from salvage vehicles. They also may be difficult to insure depending on the insurance company and state.

Also examine the title to see if is in the name of the person selling the car. "Curbstoning" is the practice of someone flipping cars without transferring the title to their name. Can be illegal in some states and raises a lot of questions in my mind. The car may be OK but proceed with caution.

 

[38Chevy454]

Yes it means that the car was totaled by ins company and then fixed. Could be flood, accident, hail, theft strip, or whatever reason the car was totaled.

Can it be an acceptable car? Yes, but also more risk. Figure approx 1/2 value vs no issues car. Plus the concern about insurance and if you can get more than just liability.

For a first time driver, salvage title may be a good choice. Since higher chance of car getting damaged. Just ensure you check out the car good to understand what you are getting.

 

[Yoheadden]

I never heard of a rebuilt title before. Thanks for sharing and the informative responses. I learned yet another thing on this forum

 

[old medic]

Yes it means that the car was totaled by ins company and then fixed. Could be flood, accident, hail, theft strip, or whatever reason the car was totaled.
Can it be an acceptable car? Yes, but also more risk.

I had a friend that would buy totaled cars at insurance auctions, rebuild them for resale. And I seen some massively damaged cars he rebuilt, and passed inspection to get a rebuilt title issued.
We also came across a car at a respected chain dealer, Looked great, clean Carfax, local trade in, or so they said. When a officer friend ran the VIN #, turns out the last time it was registered was several years earlier, from the Carolina coast... where and when the hurricane flooded thousands of cars.
That may explain the massive amount of rust up under the dashboard.
No insurance claim, no hit on the title.

 

[freedomatlast]

Cars with rebuilt titles can be a great deal or a nightmare. In general, stay away from flood cars. Cars that were in collisions can be a good deal of you can get the documentation of how and where it was hit, what was replaced and who did the work. I have bought cars that were a total loss directly from the insurance company, repaired them using OEM parts and they easily passed the enhanced inspection process required by my state. I'm still using the one I repaired in 2019 as a spare car it it's been perfect. If you are looking at one and you can't get any information, do a search on the VIN. Sometimes this is enough to pull up the Copart auction listing where you can see why it was totaled and the extent of the damage.

 

[frank]

I have purchased and repaired totaled cars in the past and have had good luck. mainly I used them myself for a few years and sold them. beware of flood cars as I have seen the corrosion in the electronics and it is not something you want in your life.

 

[street]

Cars with rebuilt titles can be a great deal or a nightmare. In general, stay away from flood cars. Cars that were in collisions can be a good deal of you can get the documentation of how and where it was hit, what was replaced and who did the work. I have bought cars that were a total loss directly from the insurance company, repaired them using OEM parts and they easily passed the enhanced inspection process required by my state. I'm still using the one I repaired in 2019 as a spare car it it's been perfect. If you are looking at one and you can't get any information, do a search on the VIN. Sometimes this is enough to pull up the Copart auction listing where you can see why it was totaled and the extent of the damage.

I wouldn't be afraid to buy a retitled vehicle. After saying that I would do the research on everyone that you may be interested in. Some great buys can be made doing so.

 

[pb4uski]

We have a small sole proprietorship shop near us that specializes in these. He has connections and only buys Subarus that have principally cosmetic damage, fixes them up well, sells them and stands behind them. He won't buy wrecks where the air bags deployed. He has a good rep in the area. DS and I test drove one of his cars after DS had totaled his car on a deer. I would have had no concerns buying a car from him.

He's semi-retired and does this to keep busy. He typically only has 1 to 4 cars for sale. His son is in NASCAR and was previously the crew chief for a couple different top drivers.

 

[sengsational]

Someone tapped my 2004 Accord and it came back (barely) as totalled. I collected $5,600 from the insurance company, painted and put on new rear bumper, and it actually looks better than it did before the tap. It's a salvage title, though. It just is strange that the insurance company won't do the "almost perfect" repair, but instead demand the full-blown factory perfect repair.

I guess all of that is to say that some only slightly imperfect cars are going to have gone salvage/rebuilt. If you know the story with confidence, I wouldn't be afraid.

 

[Car-Guy]

Yes it means that the car was totaled by ins company and then fixed. Could be flood, accident, hail, theft strip, or whatever reason the car was totaled.

That is the correct answer. I've bought a few of these as "project cars". Even after they had been "repaired" and re-titled, the ones I bought still proved to be a real PIA in the long run. Water/flood damaged cars are some of the worse, in my experience.

 

[bloom2708]

We have two cars with rebuilt titles. One a 2019 and one a 2015. Both had pretty minor front end accidents. Bumper cover, fender, hood.

No airbags were deployed for either. Both cars had before and after photos.

It is a risk/reward play. I bought a 2019 car with under 50k miles for $7k. That car without the rebuilt title would have been $15k. It has ran perfectly.

Cars that were flooded are a whole other level. I would not want a flood car. The electronics go eventually.

Like anything, if you do your homework, determine why the car was rebuilt and understand the repairs, you can come out ahead.

When you are down in the $5k to $7k price range, there is some give and take.

 

[pb4uski]

Someone tapped my 2004 Accord and it came back (barely) as totalled. I collected $5,600 from the insurance company, painted and put on new rear bumper, and it actually looks better than it did before the tap. It's a salvage title, though. It just is strange that the insurance company won't do the "almost perfect" repair, but instead demand the full-blown factory perfect repair.

I guess all of that is to say that some only slightly imperfect cars are going to have gone salvage/rebuilt. If you know the story with confidence, I wouldn't be afraid.

We have two cars with rebuilt titles. One a 2019 and one a 2015. Both had pretty minor front end accidents. Bumper cover, fender, hood.

No airbags were deployed for either. Both cars had before and after photos.

It is a risk/reward play. I bought a 2019 car with under 50k miles for $7k. That car without the rebuilt title would have been $15k. It has ran perfectly.

Cars that were flooded are a whole other level. I would not want a flood car. The electronics go eventually.

Like anything, if you do your homework, determine why the car was rebuilt and understand the repairs, you can come out ahead.

When you are down in the $5k to $7k price range, there is some give and take.

Two great examples of what I was talking about in a prior post. When I was talking with the guy he said that some of the totaled Subarus that he buys that why they were totaled rather than just repaired is a total mystery to him... and he is a pro that has done auto mechanics and body repair for many years.

 

[old medic]

Someone tapped my 2004 Accord and it came back (barely) as totalled. I collected $5,600 from the insurance company, painted and put on new rear bumper, and it actually looks better than it did before the tap.

THANKS.... I forgot about our Daughters car... A ford Escort I picked up for a couple hundred bucks, replaced the transmission and sent her off to college. She got rearended by an elderly lady sitting at a light, and totaled it out. Got $3500 from the insurance, keeping the car, spent a thousand fixing and repainting the whole car, looked like new. Several years later a coworker bought it from her.