A rebuilt title is also known as a salvage title. It is issued for vehicles declared a total loss by an insurance company in the past because they were heavily damaged. The damage could have resulted from accidents, theft recovery, floods, or other incidents that caused damage beyond a certain percentage of the vehicle's value. That percentage is set either by local regulations or an insurance company.
When your vehicle has a rebuilt title, it's been repaired and is now roadworthy after being declared a total loss. The process of getting a car back on the road after it's deemed a total loss can include extensive inspections and repairs to ensure the car meets all legal and safety standards. The standards for issuing a rebuilt title vary by location.
The upside of a car with a rebuilt title is that it will usually be lower-priced than a similar car with a clean title when you initially buy it. That means that even though your vehicle is salvaged, there is still equity available and it can be used as collateral for a title loan. The downsides can be a lower resale value, and it may be harder for you to get insurance.
You might wonder if rebuilt title loans are possible, and they can be, but there are things to keep in mind.
Clean Title vs. a Salvage Title
If your vehicle has a clean title that indicates it's not been significantly damaged or declared a total loss by an insurer. If you have a car with a clean title, it's usually easier to finance and insure. If you are considering buying a car with a salvage title, the lenders may have stricter requirements, or their financing terms could be less favorable. As far as insurance, coverage may be limited, or the premiums might be higher.
How Do You Know If a Car Has a Rebuilt Title?
There are different ways you can go about checking the title status of a car, including:
- Inspect the title certificate to see if the vehicle has a rebuilt title. In addition to the terms rebuilt or salvage, you might also look for "reconstructed."
- Get a vehicle history report. These reports combine information from various sources, including state DMVs and insurance companies, to provide an in-depth history of the vehicle.
- Use the vehicle identification number (VIN) to find out about the car's history online.
- In some places, you can check with the DMV to learn about the vehicle's title history.
A rebuilt title is usually issued by either the DMV or the equivalent agency where the vehicle is registered. Once a vehicle has been declared totaled and it's repaired, the person responsible for doing the repairs applies for a rebuilt title.
The process for getting a rebuilt title depends on the jurisdiction. Still, you usually have to apply to the DMV with documentation to prove the vehicle has been repaired and inspected.
Can You Get Salvage Title Loans?
It may be possible to get rebuilt title loans, also known as salvage title loans, but they can also be more challenging than they would be with a clean title. A title loan lender will prefer a clean title because that means the collateral is less risky from their perspective, but some lenders will consider it.
A title loan lender might offer a different loan amount and terms based on your vehicle's condition. Since vehicles with salvage titles have lower resale values than ones with clean titles, it can affect your loan amount.
If you have a rebuilt title, you might also be required to provide more documentation to a lender so they can determine its condition and value. Vehicles that have a rebuilt title might have higher interest rates and fees that come with them when you get a bad credit title loan because there's the perception that they're a higher risk.
There may also be state restrictions or additional requirements for rebuilt title loans that you need to be aware of. If a lender is willing to extend funding to you, they might want to do their inspection of a vehicle, and you could be asked to provide proof of repairs and other relevant documents.
Apply for a Salvage Title Loan with California Title Loans!
Before trying to get a title loan for a rebuilt vehicle, make sure you've carefully considered all the terms and risks. If you'd like help with the process, contact California Title Loans.