Are you buying to buy a car soon and you want to save money while doing it?
There are different ways of saving some money before you commit your hard earned money. Thousands of cars are put up for sale in the market month after month either by the owner or by car dealers.
If you’ve been looking for options on car websites or on Craigslist, you may have come across some really good-looking yet inexpensive cars!
Before you start jumping for joy, you need to pause and dig deeper. If it’s too good to be true, it may be suspicious. A good-looking, yet inexpensive car may turn out to be a rebuilt title car.
What are Salvage Cars and Rebuilt Title Cars?
Salvage car is a title given to a car which has been completely destroyed by an accident or any other means, and the insurance company has declared it totaled or not worth repairing. A salvage car may also be referred to as a rebuilt title car. This process is needed so that buyers know when a car had been deemed lost/stolen, totally destroyed, and had been rebuilt and reintroduced to the market.
Why should you consider a Rebuilt Car?
Cost effectiveness: A rebuilt car is really cheap in comparison toregular used cars. A buyer will end up paying only a fraction of the actual amount of the car if it were not salvaged.
False Claim: Sometimes Insurance companies issue a salvage title to a car that has not been damaged to an extent that it cannot be repaired, just to avoid some other major expenses such as medical expenses or the damage costs associated with the customer. Thus if such cars are well repaired, they can actually be a very cost-effective option for you for a fairly good car. Furthermore, some cars that had been stolen and then found may be declared as ‘rebuilt cars’ but they are still in really good condition.
Documented Repair Work: Car rebuilders need to document the repairs of a salvage car to enable it to be approved as a rebuilt car. Thus as a buyer you can rightly demand for the paper work and get it checked with your trusted mechanic to verify all the repairs before investing in the vehicle. Once the vehicle is cross verified and approved you can go ahead and enjoy the benefits of purchasing a relatively cheap car.
Short Term investment: If you are planning to invest in a vehicle for a short term purpose, a rebuilt car will serve as the best and the most practical option for you. If you need an extra car for the family for short distances, a rebuilt title car can also be a good option.
Why should you avoid a Rebuilt car?
No Insurance – No Financing: If you think you can easily insure your rebuilt vehicle you will be up for some surprise. Not all insurance companies provide insurance to rebuilt vehicles because it is quite challenging to evaluate the exact value of a salvaged car. At the most some companies will provide some cheap coverage.
Simultaneously, since it is difficult to obtain insurance for rebuilt vehicles, financers are not willing to lend money for the purchase of such cars.
Safety Concerns: Buying a rebuilt car imposes a huge question on your safety. Firstly, you can never judge the degree of damage caused to a car before it was rebuilt. If the damage was way too grave then no matter how well the car is rebuilt, its safety will be compromised at every step. Secondly, many rebuilders can overlook or underestimate some damages which can pose a potential threat on the driver. Thirdly, shady rebuilders will deliberately not make proper repairs to cut down their own cost or will incorporate used or damaged car parts while restoring the vehicle, which can lead to severe mishaps while the vehicle is operating.
No Resale value: Due to the safety concerns, no or very low insurance coverage as well as no financing, calls for a very small pool of potential buyers for the rebuilt cars. And people who are interested in buying always demand huge discounts from the rebuilders because of its low value. On the other hand, even if you have purchased a rebuilt car, it is quite difficult for you to resell it due the same reasons.
Fraud: In order to get a good price for the rebuilt cars, many dishonest rebuilders carry the salvage vehicles to other states that do not have an inspection policy in place and present their rebuilt cars, which are easily cleared off with a clean title. Getting a clean title enables the car builders to earn much more than what they would have acquired under a rebuilt title.
Buying a rebuilt title car is quite tricky and challenging as it has its own pros and cons. However, you should thoroughly check the vehicle and weigh its value with respect to the above mentioned parameters to comprehend whether you are making a good deal or ruinous one.