Rebuilt Title vs. Salvage Title: What's the Difference?

TL;DR: Salvage title = damaged, not roadworthy, insurance totaled. Rebuilt title = was salvage, now repaired and inspected. Both reduce value 30-50%. Insurance is difficult. Resale is hard. Should you buy one? Only if you understand the risks and get thorough inspection. Most buyers should avoid.

You're looking at a used car. Price seems too good to be true. Then you see it: "Rebuilt Title" or "Salvage Title." What does this mean? Is it safe? Should you buy it?

Understanding title brands protects your investment and safety.

What Is a Salvage Title?

Salvage Title: Vehicle was declared total loss by insurance company. Damage exceeded vehicle's value. What it means:

• Insurance company totaled the car
• Damage was severe
• Car was not roadworthy
• Required significant repairs

Why cars get salvage titles:

• Accident damage (exceeded value)
• Flood damage
• Fire damage
• Theft recovery (damaged)
• Hail damage (extensive)
• Other severe damage

Legal status:

• Cannot be driven on public roads
• Cannot be registered
• Must be repaired and inspected
• Then can become "rebuilt"

What Is a Rebuilt Title?

Rebuilt Title: Was salvage title, now repaired and inspected. Can be driven and registered. What it means:

• Was salvage (totaled)
• Has been repaired
• Passed state inspection
• Now roadworthy (legally)

How it becomes rebuilt:

1. Car was salvage (totaled)
2. Owner repaired the car
3. Car passed state inspection
4. Title changed to "rebuilt"
5. Can now be registered and driven

Legal status:

• Can be driven on public roads
• Can be registered
• Legally roadworthy
• But title is permanently branded

Key Differences

Salvage Title

• Status: Not roadworthy
• Can drive: No
• Can register: No
• Insurance: Very difficult
• Value: 50-70% less than clean title
• Resale: Very difficult

Rebuilt Title

• Status: Roadworthy (legally)
• Can drive: Yes
• Can register: Yes
• Insurance: Difficult but possible
• Value: 30-50% less than clean title
• Resale: Difficult but possible

Types of Title Brands

Salvage Title

• Total loss by insurance
• Damage exceeded value
• Not roadworthy
• Must be repaired

Rebuilt Title

• Was salvage, now repaired
• Passed inspection
• Roadworthy
• Title permanently branded

Flood Title

• Damaged by flood
• Water damage
• Electrical problems likely
• Mold issues

Hail Title

• Extensive hail damage
• Cosmetic damage
• Usually safe mechanically
• Reduced value

Lemon Title

• Repeated unfixable problems
• Manufacturer buyback
• Chronic issues
• May still have problems

Manufacturer Buyback

• Bought back by manufacturer
• Usually under lemon law
• May have ongoing issues
• Check why it was bought back

Insurance Issues

Salvage Title

• Insurance: Nearly impossible
• Liability: Very difficult
• Comprehensive: Not available
• Collision: Not available

Rebuilt Title

• Insurance: Difficult but possible
• Liability: May be available
• Comprehensive: Usually not available
• Collision: Usually not available

Why insurance is difficult:

• Higher risk
• Unknown repair quality
• Hidden damage possible
• Resale value low

What to do:

• Check with insurance before buying
• Get quotes from multiple companies
• Understand coverage limitations
• May need specialty insurance

Resale Value Impact

Clean Title

• Value: 100% (baseline)
• Resale: Easy
• Buyers: Many
• Price: Market value

Rebuilt Title

• Value: 50-70% of clean title
• Resale: Difficult
• Buyers: Few
• Price: Significantly reduced

Salvage Title

• Value: 30-50% of clean title
• Resale: Very difficult
• Buyers: Very few
• Price: Heavily reduced

Example:

• Clean title car: $15,000
• Rebuilt title: $7,500-$10,500
• Salvage title: $4,500-$7,500

Safety Concerns

Rebuilt Title Risks

• Unknown repair quality - Who fixed it? How well?
• Hidden damage - Problems may appear later
• Structural damage - May affect safety
• Electrical problems - Common after accidents
• Airbag issues - May not deploy correctly

When Rebuilt Title Is OK

• Minor damage - Cosmetic only
• Professional repair - Done by qualified shop
• Thorough inspection - No hidden problems
• Good documentation - Repair records available
• Low price reflects risk - Significant discount

Should You Buy One?

When to Consider

• Price is very low - Reflects the risk
• Thorough inspection passed - No hidden problems
• Repair documentation available - Know what was fixed
• You understand the risks - Know what you're getting
• You plan to keep it long-term - Resale not important

When to Avoid

• Price seems too good - May be hiding problems
• No inspection available - Can't verify condition
• No repair records - Don't know what was fixed
• You need insurance - May be difficult
• You plan to resell - Will be difficult

How to Check Title Status

Step 1: Check Vehicle History Report

• CARFAX
• AutoCheck
• NMVTIS (free government database)
• Skanyx VIN History Reports (Coming Soon)

What to look for:

• Title brands listed
• Damage history
• Repair records
• Title changes

Step 2: Check Physical Title

• Look at actual title document
• Check for brands or stamps
• Verify with DMV
• Check state records

Step 3: Professional Inspection

• Get thorough inspection
• Check for hidden damage
• Verify repairs
• Test all systems

Red Flags

Warning signs:

• Seller won't show title
• Price too good to be true
• No repair documentation
• Seller avoids questions
• No inspection allowed
• Pressure to buy quickly

If you see these:

• Walk away
• Don't buy
• Report seller
• Find another car

State-by-State Differences

Title brand regulations vary by state:

• Some states are stricter
• Inspection requirements vary
• Documentation requirements differ
• Check your state's laws

What to do:

• Research your state's laws
• Understand requirements
• Check with DMV
• Get legal advice if needed

FAQ

Q: Can I drive a salvage title car? A: No, not legally. Must be repaired and become rebuilt title first. Q: Is rebuilt title safe? A: Depends on repair quality. Get thorough inspection. May be safe if repaired well. Q: Can I get insurance on rebuilt title? A: Difficult but possible. Check with insurance companies. May need specialty insurance. Q: How much less is rebuilt title worth? A: 30-50% less than clean title. Varies by car and damage. Q: Should I buy rebuilt title car? A: Only if you understand risks, get inspection, and price reflects the risk. Most buyers should avoid. Q: Can rebuilt title become clean title? A: No. Title brand is permanent. Once rebuilt, always rebuilt.

The Bottom Line

Salvage title = totaled, not roadworthy. Rebuilt title = was salvage, now repaired. Both reduce value 30-50%. Insurance is difficult. Resale is hard. Should you buy one? Only if you understand the risks, get thorough inspection, and price reflects the risk. Most buyers should avoid rebuilt/salvage title cars.

Want to check a car's title status yourself? SKANYX VIN History Reports (Coming Soon) provide comprehensive vehicle history including title brands. See our pricing for diagnostic tools.

Need Help Checking a Car's Title Status? Join the Skanyx waitlist to get comprehensive vehicle history reports that show title brands, damage history, and help you avoid buying problematic vehicles. Learn more about SKANYX features or see our pricing to get started.