What Damage Leads to Salvage and Rebuilt Titles?

Curious what damage leads to a rebuilt title? Here’s the quick answer: None! 

Confused? Don’t be. This is a battle of vocabulary and we’re here to set the record straight. 

1. “Rebuilt” Does not Mean “Damaged”

Alright, we know what you mean. To understand the answer above , it’s important to understand the difference between a salvage and rebuilt title. Damage itself does not directly lead to a rebuilt title. In fact, a rebuilt title is issued only after a vehicle has been restored to a safe, roadworthy condition following a salvage designation. So, while damage can lead to a salvage title, it’s repairs that lead to a rebuilt title.

2. Damage Leading to Salvage Title

A car is typically given a salvage title when it sustains significant damage—whether through an accident, flooding, fire, or other serious events—that results in repair costs being deemed too high relative to the vehicle’s value. This is determined by the insurance company, who will declare the car a “total loss” and issue a salvage title. 

However, sometimes a vehicle isn’t damaged at all before receiving a salvage title. For example, in cases where a car was stolen and recovered after being deemed a total loss, it will still hold a salvage title even though it was never damaged. 

In recent years, cars have become increasingly more expensive to repair which means even minor accidents can lead to repairs that outweigh the total value of the vehicle. Areas with complex electronics, for instance, are easily damaged and not easily repaired.

3. The Rebuilt Title Process

A rebuilt title comes into play after a salvage-titled car has been repaired. To earn a rebuilt title, a vehicle must pass a state inspection to ensure it meets safety and roadworthiness standards. The rebuilt title reflects that the car has been properly repaired, making it safe and legal to drive again. Ah! Sweet Redemption!

4. The Role of Inspections

The inspection is carried out by the state Department of Motor Vehicles (DMV) and each state varies slightly in their requirements. In general, this inspection looks at the structural integrity of the car, safety features, and any other critical systems that were damaged. If the car passes inspection, the title changes from salvage to rebuilt, allowing the car to be legally driven.

Why Buy a Rebuilt Title Vehicle from ReVroom?

Though an issue of vocabulary, the difference between rebuilt titles and salvage titles is important. While their histories vary from minor fender benders to hail damage or theft recovery, the rebuilt title most happily indicates that a car is ready for a new journey on the road. 

If you’re interested in seeing what’s out there, stick with ReVroom — the rebuilt auto marketplace. We specialize in rebuilt listings to make it easier than ever before to compare, buy, and sell rebuilt vehicles safely.

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