What is a Rebuilt Title?

A title is a physical document that proves ownership of a vehicle. When a car is purchased for the first time, a dealership provides the title to the new owner and registers it with the state Department of Motor Vehicles (DMV). This process establishes the owner’s legal claim to the vehicle and allows the state to track its history. This includes any changes in ownership, accidents, or liens. At this point, the title is considered ‘clean,’ but happily ever after isn’t guaranteed.

Stop One: Becoming “Salvage”

If the vehicle sustains damage or some other event, an insurance company has two options—fix it or sell it. If the insurance company fixes the car, its title will remain “clean”. However, if the company decides not to repair the car, it will be declared a “total loss.” The vehicle will then be re-titled and branded as “salvage.” At this stage, the car is typically sold to scrap yards, auction houses, or other buyers. It’s important to note that a car with a salvage title cannot be legally driven.

Stop Two: Redemption

With the fate of these vehicles in the hands of insurance agencies, the outcome can be as unpredictable as roulette. But just because a car wasn’t repaired, doesn’t mean it couldn’t or shouldn’t have been. Recognizing this, noble private parties purchase salvage-titled vehicles and fix them.

Stop Three: Becoming “Rebuilt”

Once a vehicle has been repaired, it must pass a state safety inspection. If it passes this inspection, the title will be reissued and the brand will change from ‘salvage’ to ‘rebuilt.’ Freshly redeemed, the vehicle can then be sold and driven into a new kind of happily ever after. 

Simple Terms | What is a Rebuilt Title?

So what is a rebuilt title, really?  Simply put, a rebuilt title is a designation given to vehicles that have been repaired and restored to a safe, drivable condition after being deemed a total loss by an insurance company. 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. 

So, why buy a rebuilt title? Click here to learn about The Benefits of Rebuilt Titles and click here to browse rebuilt listings near you on ReVroom.