Let’s lay out the obvious. When you decide to purchase a used car, no matter what its history is, it will always come with more risk than buying a brand-new car. That’s not to say that a used vehicle isn’t a great option, because it is and for many reasons. There are used cars that are certified pre-owned and ones that are just in really good shape. Then, there are used vehicles that have a salvage title or rebuilt title, which raises the question of whether or not it is a good idea to buy a damaged vehicle with a rebuilt status.
What are Salvage and Rebuilt Titles?
Both a salvage title vehicle and rebuilt title car fall under the same classification of being branded titles, but are different from each other. A salvage title car is a vehicle that has been deemed a total loss or write-off as a result of theft, fire, flood damage, another natural disaster, or a collision. A rebuilt title is a salvage title vehicle that has been repaired and cleared to be safe for the roads.
Is it Okay to Buy a Branded Title Vehicle?
There is no definitive answer to this question as it is very circumstantial. In most Canadian provinces if a vehicle is considered a stolen vehicle, after 21 days it automatically becomes a salvage title vehicle even if it had a clean title when it was stolen. In many situations if and when the stolen vehicle is located, there is zero damage to it. In this case, buying a salvage title vehicle is perfectly fine, and you’ll get a much lower price than you would for the same vehicle with a clean title. If you plan to eventually sell your vehicle, keep in mind that the resale value on a branded title is significantly lower.
Always tread carefully with salvage or rebuilt titles, no matter how good you think the vehicle is. A lot of times, the damage on the vehicle isn’t on the surface, so ensure you get it looked at by a trusted mechanic and have them check the structural integrity and the powertrain of the motor vehicle. Don’t always trust your instinct, because at the end of the day a salvage or rebuilt title vehicle must be inspected by a licensed technician before an insurance company will allow you to get car insurance.
Tips For Potential Buyers of Branded Title Vehicles
So we have concluded that a rebuilt title has the potential to be an option when buying a vehicle, but before committing 100%, follow these few tips.
- If you are buying the car from the person who had the repairs done, ask for a breakdown of receipts and service records. If they are reluctant to give them to you, consider it a red flag.
- In addition to reviewing the receipts, research the location in which the repairs were done.
- Look into why the vehicle is a rebuilt title. If it was because of a flood, there could be corrosion that has gone unnoticed.
- Check with an insurance provider to ensure the vehicle is insurable.
Title Washing
Title Washing is illegal and it’s when a vehicle is moved out of province and insured in another which won’t have the title history attached to it. Although it isn’t that common; it does happen. On the positive side, this is completely avoidable. All you have to do is get a vehicle history report from CARFAX. The history report of a vehicle is based on the vehicle identification number (VIN) and not the province in which it was last registered.
Financing a Rebuilt Title
We are big supporters of financing and we make it really easy to get approved for financing, and it can be done online and only takes a few minutes. Unfortunately, it isn’t easy to get a car loan on a rebuilt title. For lenders, it’s about vehicles being able to hold their market value in the event borrowers become delinquent on their loan because in those cases the vehicle is sold to recoup the cost of the loan, and since branded titles have lost so much value, it’s often too risky for lenders.
Best Used Car Deals
You don’t need to buy a rebuilt title vehicle to get a good deal on a vehicle. Buy your next car from us, FFUN Cars. We have amazing prices and the car-buying experience is all about you and your convenience. For example, you can start by browsing vehicles online, and you can even complete the entire transaction online. If you prefer to shop in person; no problem, we’d love to see you. We offer one price without haggling. All of our “salespeople” don’t work on commission, so they can focus on finding you the perfect vehicle. We refuse to pass you from one person to another, which is why you will work with ONE person from start to finish. We know your time is valuable, which is why we will get you in and out in ONE hour or less. You’re probably wondering how you test-drive a car and buy it in one hour. Well, you don’t have to; we offer 24-hour test drives so you can get a full feel for the car. We’re new, and we’re waiting to find you your next car.
