what does a rebuilt title mean?

TLDR: A rebuilt title indicates a vehicle that was previously declared a total loss but has been repaired and passed inspections to be roadworthy. While it can offer cost savings, it may also present challenges such as insurance difficulties and lower resale value.

A rebuilt title is assigned to vehicles that were once deemed a total loss by insurance companies due to significant damage but have since been repaired and restored to a safe, operational condition. Initially, these vehicles receive a salvage title, indicating they are not roadworthy. To obtain a rebuilt title, the vehicle must undergo extensive repairs and pass state-mandated inspections, ensuring it meets safety standards. This title serves as a permanent record of the vehicle's history, alerting potential buyers to its past damage.

While purchasing a vehicle with a rebuilt title can lead to substantial cost savings—often 20% to 50% less than similar vehicles with clean titles—it also comes with potential downsides. Buyers may face insurance challenges, as many companies are hesitant to provide full coverage, and resale values are typically lower due to the stigma associated with the vehicle's history. Therefore, it's crucial for buyers to conduct thorough research, obtain vehicle history reports, and consult trusted mechanics to assess the vehicle's condition before making a purchase.