How Much Does A Rebuilt Title Devalue A Car?

It’s a common question when either trying to buy or sell a car, “How much does a rebuilt title devalue a car?” Professionals in the auto and insurance industries report that a rebuilt title can detract from 20 to 50 percent of the value a car, depending of course on the specific age, and wear-and-tear, put on the vehicle.

A car with a clean title will always be worth more, especially in the eyes of an insurance claims adjustor. Something to keep in mind when purchasing any vehicle with a rebuilt title, is that its value is already lessened by being rebuilt, even if its running smoothly. Remembering this will allow for realistic expectations of a claim, in case you’re ever in an accident. Which is extremely useful to know ahead of time, before you have to determine what you can spend on another vehicle.

What Is The Value Of A Salvage Title?

In a study released in 2015, using the combined data of over 5 million vehicle wholesale transactions, the diminished value of salvaged title vehicles was thoroughly investigated. There are many factors included in each individual vehicle worth, but an average of costs and values was able to be determined.

Salvaged title vehicles, on average, will experience a 66% discount in value when compared to a clean title. What does this mean? It means that the vehicles will only fetch 34% of the wholesale price after being repaired and resold.

The type of vehicle salvaged will also play a factor in the value being determined, with mid-size vehicles and SUV’s retaining higher value, while luxury vehicles and pick-up trucks trended towards even lower returns. When considering, “What is the value of a salvage title?”, it is best to take into account these trends. Will there be exceptions to these rules? Of course. But these are the averages in accordance with large amounts of cumulative research, and that’s information worth using to avoid putting your finances in a state of crisis.

What’s The Difference Between Rebuilt Title & Salvage Title

One definition of a salvage title for a car is one that’s been an accident and is now considered worthless by an insurance company. Meaning you shouldn’t bother repairing it, the vehicle is now a total loss. This definition isn’t universal, by any means. Different states have different laws as to what makes up a salvage title. All of the information as to what your specific state uses to comprise a salvage title should be available on your local DMV’s website.

When a rebuilt title is determined for a car, that means it used to have a salvage title, but has been restored to a safe and street-legal condition. This doesn’t mean that every part of the car has been replaced, but that it’s been inspected by a professional from the state, and deemed legally functional for driving.

The differences may sound subtle, but they will be important in any future assessments of a car’s value.

How Much Does A Rebuilt Title Affect Value Of A Car?

The answer to this question is: tremendously. It’s estimated by professionals in the automotive and insurance industries, that a car loses 20 to 50 percent of its value when it has a rebuilt title. Which is something any buyer should take into account before purchasing a vehicle. Not only will you have to contend with not having much to work with if after your assessment, if you get into an accident, but anyone potential buyer looking up your VIN number will immediately want to pay less for your car.

When deciding whether to purchase a car or not, you should always take into account the history of the car itself.

What’s A Rebuilt Title?

A car is given a rebuilt title when it has at one time been determined as a salvage title car, but has now been repaired to a safely operable condition. Once a state assessor is able to determine that the formerly salvaged vehicle is street worthy, then the rebuilt title is granted, and the aforementioned vehicle is now ready to be put on the market.

If you want to determine what constitutes the make-up of a salvage title car, you can access that information on your states local DMV website.

How Can I Sell My Rebuilt Title Car Or Salvage Title Car?

There are multiple options when looking to sell a rebuilt title or salvage title car. It can seem a little imposing at first, but the optimal is usually going to be selling it privately. The hope being that the buyer looks more at the working value of the vehicle, as opposed to its assessed value.

In the times when you can’t find a private buyer for your rebuilt title, or salvage title, vehicle, it may be a good time to look towards a junkyard, or to selling it part by part. The junkyard will most likely be able to come and pick your car up from its location, but you may also make the most money out of selling it piece by piece. Depending on the vehicle, your parts may end up being worth more than selling the vehicle whole.

If none of the aforementioned methods seems like their going to work, you can also donate your car for a charitable tax write-off. This may not seem like the most beneficial to you in the moment, but come tax time might save you a nice chunk of money.