Rebuilt automobile title

[1911Sooner]

So I'm wanting to buy a car from an private seller and the car is priced very good. However I see that it has a rebuilt title. I inquire about that and am told its due to having a wreck in the ice and the front wheel and tie's rods being replaced. I asked if the car has ever had body work done and they said no.

So is the wheel enough to warrant a rebuilt title? I thought that was for major accidents or flooded cars and such. I don't have a carfax account.

 

[FullAuto]

In this state, if the Safe Operation Estimate (SOE) is 60% of the Actual Cash Value (ACV), it must have a rebuilt title. If the SOE is 80% of the ACV, it requires a junk title and can never be put back on the road. If the SOE is <60% ACV, it can be sold as a clean title. The SOE is NOT the total amount of damage. There are specific items that go on the SOE only. Suspension parts will be on the SOE.

Just because a car is totaled, doesn't mean it will be run through the salvage (insurance) auction with a branded title. If it doesn't require a rebuilt title, it can be sold as a clean title car. It will bring more value to the rebuilders since they will resell it repaired with a clean title. For example, cars totaled from hail damaged almost always qualify for a clean title. Some (few) insurance companies will brand the titles anyway if they don't have to because they don't want to insure it in the future.

A majority of the damage in a collision doesn't go on the SOE. So if it's a $10k car, it had at least $6k in specific damaged, most likely suspension, mechanical or structural. Things like fenders, bumpers, hoods and even doors don't go on the SOE. Basically, I call BS on "minor" damage.

BTW, I write these estimates for a living.

 

[dieseltech09]

I know there are others on the board that will know for sure but I think if it has a rebuilt title then it was totaled out by an insurance company at some point.

 

[1911Sooner]

Perfect, thanks a ton guys.

 

[Zaphod Beeblebrox]

It sounds like an insurance company totaled it out. Most will total a car once the cost of repairs meets a certain percentage of market value for the car. That percentage varies, but when I was an adjuster, it was around 65-70% for my company; others wouldn't total a car until 80%.

But, it may not be a bad deal. Body and mechanical work can be pretty pricey, and if a car is old and not collectible, its market value is pretty low. I saw 20 year old cars considered "total losses" over parking lot fender benders. The cars were fine, but fixing them would cost darn near as much as the car was worth.

 

[kennedy]

My son's mustang has a rebuilt title. I know the banks will only loan half of the actual loan value on a rebuilt title. Just make sure you go over the vehicle with a fine tooth comb. Make sure it was repaired right. Ours is great, we paid about $5,000 less than what it blue booked for.

 

[nofearfactor]

Im not a dealer just a hobbyist-enthusiast who buys and mods then sells alot of cars on the side. One red flag when I read an ad is the rebuilt title. I dont usually have a problem with the car itself if it has been repaired right and if its something I really want and am gonna keep for my own collection, several of my cars Ive bought with salvage titles, my family has been in the auto body & paint business my entire life. But, if there is a possibility that I will resell it then I wont buy em because of the stigma attached to it at resell, its just something else that turns some people off.

 

[918evo]

I buy wrecked cars, and either sell parts off of them, or rebuild them for sale. Most people that sell rebuilt cars lie about the damage. It takes a trained eye to tell what has been done, and how well it has be repaired. Don't be scared of a rebuilt title, but know what has been done(pay a trusted body shop or someone to check it out). Rebuilt titles are worth 80% or less of their normal value, and are hard to sell. When looking for signs of body work, look for over-spray and replaced panels. Most imports have vin stickers on the panels that can't be replicated if wrecked. I've seen rebuilt titles with suspension damage only, but that is very rare. Usually it is much more...

 

[Wheel Gun]

My pickup has a rebuilt title. The story was that it had front end damage and an airbag deployment. Some insurer totaled it and an OKC shop/lot sold it to me. I've driven it for six or seven years now without an issue. But, I got a great deal on it and entered into the purchase with my eyes wide open. I'll drive it until the wheels fall off and then just donate it to someone. So, my experience was a very good one.

 

[willystruck]

Depends on your intended use of the vehicle. If your going to drive it for a while and sell it, then avoid the rebuilt title. If, like me you drive your vehicles till the wheels fall off then repair and do it again, the rebuilt title won't make any difference. I currently have a 90 Jeep Wrangler with a rebuilt title out of Kansas. I'll drive it till I can't climb in to the seat any more.