VIN CHECK: Salvage Rebuilds

What is a salvage rebuild?

Salvage rebuilds, also known as rebuilt title vehicles, are cars that were previously deemed a total loss by an insurance company due to significant damage from accidents, floods, or other events. While they may seem like a bargain due to their lower price, there are several reasons why buying a salvage rebuild might not be a good idea. Understanding the risks and learning how to identify these vehicles can help you avoid costly mistakes.

Once these vehicles are repaired, the owner can apply for a “rebuilt” title. Typically, a rebuilt title is only issued after the repaired vehicle is inspected by the state’s DMV or jurisdiction that issues titles. If the repairs are satisfactory, the title is changed from “salvage” to “rebuilt”. However, one must note, that in most cases, the inspector will visually inspect the vehicle and the repairs that were done, and will verify that basic systems like headlights, tail and brake lights, horn, windshield wipers and exhaust work properly, BUT they will rarely drive the vehicle or verify that safety systems, like airbags, are operational.

Check any VIN for rebuild status with VinAudit.com!

Why is it dangerous to buy a salvage rebuild?

Since a car with a “rebuilt” title has suffered enough damage to earn it a salvage title, even if it looks good from the outside and passes the required inspection, the severity of the damage can be destructive to a car’s structural integrity. Besides the obvious safety concerns with a vehicle that may not be structurally sound, here are a few other reasons to think twice before buying a salvage rebuild:

Good luck getting financing or insurance:
There are very few auto insurance companies that are willing to write collision and comprehensive policies on a rebuilt-title vehicle, as frankly, it is almost impossible to properly value the car with so many unknowns. The same goes for lenders, who secure your loan against the value of the vehicle.
Your vehicle will have minimal resale value
Some resources may say getting a 5-15% discount off a specific vehicle because of its inferior title, is a great deal as long as the vehicle is satisfactory. However, buyers must be aware that Edmunds and Kelley Blue Book won’t even attempt to give values to these vehicles because they may be closer to 50% or less than the exact year/make/model vehicle with a clean title.
Plan on keeping it forever
Even if you are willing to take a lower price in the event that you would like to sell your vehicle down the road, salvage rebuilds are extremely difficult to sell. Because they are so difficult to finance, and because of the inherent safety risks, the pool of potential buyers is quite small when a rebuilt salvage title is involved.
Fraud is commonplace
In fact, you may be driving a salvage or rebuilt title car already and not even know it. Title washing is a malicious criminal act that is a very prominent problem here in the U.S. Because state titling requirements vary, there is a loophole that these crooks use to sell a “clean title” vehicle, when in reality it is not. A vehicle with a salvage title in one state, can be driven to a state where an inspection is not required and a clean title will be issued. You can read more about title washing here

How do I protect myself from the risks involved?

Regardless of how well it was repaired, a vehicle with a salvage or rebuilt title will never be as good as one with a clean title. While shopping for your next used car, here are some important points to keep in mind to protect yourself from making a bad decision:

Ask to see the title document
If any of these words show up – totaled, reconditioned, salvaged, junked, rebuilt, or warranty returned – or if the color of the title is different from what you have seen before, you are probably looking at a salvage title. Your state or DMV website will have the specific markings to look for on the title document. Additionally, you should check the document closely to make sure it has not been physically altered in any way.
Get a professional inspection
Make sure you get a thorough mechanical inspection of all drivetrain and safety systems. Take it to your trusted mechanic, or better yet pay for an inspection from a qualified inspection company, if you are really close to finalizing the purchase. These companies perform a top to bottom inspection and provide you with a written report.
Run a VinAudit report
A quick check will give you detailed vehicle specifications, current and historical title records, and report to you any issues across 60+ potential title brands, including the date and entity reporting. This information is provided by the National Motor Vehicle Title Information System (NMVTIS) which contains records of total-loss reported by insurance companies as well as records of salvage reported by junk and salvage yards. Other resources may suggest to pay up to 4x as much for a Carfax report, but you must be aware that those reports do not include this crucial data from NMVTIS.
Check with your insurance company
Verify that you are able to attain the policy you desire since most insurers stay away from salvage vehicles. If they are willing to insure the vehicle, get a detailed quote, as the premiums on these policies can add up to be much greater than what you may have saved on the purchase of the vehicle.

VIN CHECK: Salvage Rebuilds

What is a salvage rebuild?

Check any VIN for rebuild status with VinAudit.com!

Why is it dangerous to buy a salvage rebuild?

Good luck getting financing or insurance:

Your vehicle will have minimal resale value

Plan on keeping it forever

Fraud is commonplace

How do I protect myself from the risks involved?

Ask to see the title document

Get a professional inspection

Run a VinAudit report

Check with your insurance company

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