Rebuilt Title Cars Value
Selling a rebuilt title car is tough especially when the car is less than perfect. When they learn an automobile has been rebuilt, the majority of customers will often walk away, but why? The car’s resale value or potential safety issues are only a couple of the numerous reasons a buyer could decide against buying the rebuilt car or salvage cars.
Before buying or selling a rebuilt title car, it’s very important to have a thorough understanding of what a rebuilt title is and how it impacts the value of your car. It’s not an easy task to sell a rebuilt title vehicle. If you have a less-than-perfect, almost trash, or rebuilt vehicle that you want to sell quickly for a fair market value with less negotiation and free towing, we have some helpful tips ready for you.
What is a Rebuilt vehicle?
Rebuilt titles often indicate that the vehicles were declared a total loss by the car insurance companies due to their extreme damage. Someone has made the effort to restore or rebuild the salvaged car. Based on local rules and regulations, the rebuilt title car might need to go through an inspection before it can be driven on roads.
Difference Between a Rebuilt Title Car and a Salvage Title Car
One of the major differences between a Rebuilt Title Car and a Salvage Title Car is that rebuilt car was salvaged once but has been repaired. To ensure that the rebuilt car is in good condition, it has to pass through a fairly thorough inspection. It is declared rebuilt title car as soon as it passes the exam.
A car that has a rebuilt title is one that has been bought and fixed after the car insurance company considers it a complete disaster as a whole. Normally, it occurs after an accident. It may also happen when a natural disaster like a storm, flood, or tornado causes significant damage to the vehicle.
Role of the Insurance Company and Auto Insurance Rates in Determining Rebuilt Title Cars Value
The majority of people who have gone through this process can surely say that accepting the insurance company’s evaluation of your rebuilt car’s value is the most frustrating part. In most cases, the estimation is lower than you expected, and the compensation you receive is insufficient to cover the cost of an apples-to-apples replacement.
The value of your rebuilt title car will depend on the current insurance rate. Most insurance providers will be hesitant to offer you full coverage insurance. If you meet the specific requirements, only then you will be eligible for purchase coverage. However, there are some limitations regarding the policy of these types of insurance coverage. So, you must take enough time to compare the quotations yourself.
How to Measure the Market Value of Rebuilt Cars
Different insurance companies may place a different value on rebuilt cars. As it varies on the type, manufacturing process, and model of the car, there isn’t a set formula for determining the worth of rebuilt title vehicles. The value of the car actually depends on how much damage there is compared to the price of the car at this point.
Insurance companies estimate the worth to be up to 80% below the original selling price. They don’t use a standard formula to calculate the value of the car. Instead, their decision is taken based on whether it can still be repaired or if it should be written off as a total loss project.
Here are a few tips that you may find useful while calculating the value of your rebuilt vehicle:
- Verify the vehicle’s specifications.
- Reduce 50% of the retail price.
- Determine the Current Market Value.
- Multiply it by the percentage of the Insurance company’s rate.
Advantages of Purchasing Rebuilt Vehicles
There are many pros to buying a car with a rebuilt title. Some of them are discussed below:
The price of the rebuilt vehicle is comparatively lower. A rebuilt title car should be sold for a lower price compared to a car that has a clean title.
There are many reasons behind declaring the car a total loss. First of all, the rebuilt car that you are willing to buy may not be as badly damaged as you think. If you don’t have any expertise or experience with cars, you might want to hire a reliable technician to check the damages for you.
Secondly, the rebuilt title car may be fine if it just required a few pricey replacement parts that the insurance company refused to pay for. However, it might not be worth the risk if it sustained more serious damage, such as a warped or fractured frame. Make sure to find out why the car had to be rebuilt and what was done to repair the problem.
Downsides of a Rebuilt Salvage Car
There are also some disadvantages of purchasing a rebuilt title car. Some of them are given below for your consideration:
Tough to Sell
Rebuilt title cars value may decrease over time. The rebuilt title of your car can easily scare off buyers if you ever made the decision to upgrade or trade-in. Also, salvage cars are very difficult to resell.
Past Damages Can Show Their Effects Later On
Even if you try to properly check the vehicle before closing the deal, cars being complicated machines, things can always go wrong. Even seemingly resolved mechanical problems might end up costing you thousands of dollars.
Harder to Get Insurance
Even when your car is in excellent condition, certain insurance companies may view a rebuilt title negatively. In some rare situations, an insurance company may agree to offer you liability insurance but refuse to give you collision or comprehensive insurance. In almost every state, drivers are required to have liability insurance.
How Much a Rebuilt Title Devalues a Car
Whether you are buying or selling an old vehicle with a rebuilt title, you might need to get familiar with all the specific information. Purchasing a rebuilt title car can save you a huge amount of money for sure. But first, you need to dig deep and do your necessary research. The question is, how much does a rebuilt title affect the value of a car?
Rebuilt titles can reduce a car’s value by 20–50%. This price reduction mainly depends on the age and the state of the rebuilt car. In some cases, many cars lose between 15% and 50% of their value.
Best Ways to Sell a Rebuilt Title Car
Selling a car with a rebuilt title can be challenging. So, here are some tips that might help you sell your rebuilt title car:
Provide a Report on the Detailed History of the Car
To ease the minds of your potential customers, you need to provide a vehicle history report that contains every necessary detail including the accident information, what parts were damaged and replaced, and repair cost. To make a confident purchase decision, this is a must.
Provide Documented Repair Work
For many prospective car buyers, the inability to provide proof of repair work raises a red signal. They might interpret this as a sign that the car is not safe to purchase or that the seller is hiding something. So, you must keep all official documentation of the work that was done on it.
Offer the Car at a Lower Price
A vehicle with a rebuilt title would sell for less money than other used cars with clear titles. Offering your car at a lower price will attract more customers.
How to Get Car Insurance With a Rebuilt Title Vehicle
Some insurance companies won’t cover insurance for vehicles with rebuilt titles. So, you may need to shop around with several different companies. You must contact multiple insurance companies if you want full insurance coverage.
You might want to reconsider your choices if the amount you’re paying for insurance exceeds the money you saved by buying a rebuilt vehicle. Although not all insurance companies would charge more for rebuilt title cars, some will add on a 20% premium.
Once you’ve found an insurance company that will cover insurance for your chosen rebuilt car, you will need to provide the following information about your car to request a quotation and buy insurance:
- Statement of a certified mechanic.
- Photos or videos of your rebuilt car.
- Original repair estimate of your car.
There are certainly some challenges while buying or selling a car with a rebuilt title. The buyer might end up spending far less for a fantastic, roadworthy vehicle and the seller could even turn a profit by selling the rebuilt title car at a great price.
If you do not know much about rebuilt cars, it might be challenging to assess the rebuilt car’s quality. Getting your inspection done is important because each state has specific requirements for a rebuilt title status.