We're looking for a car and ran across some dealers that specialize in doing rehab on newer model cars. They seem like great deals, and they seem to do a really nice job, but I'm afraid I lean towards being skittish enough that I'd probably steer clear.

What's the skinny on these things? Good deal? Occasionally a gem? Run far, far away? Worth researching each possibility? Hell to the no?

Thanks for your expertise.

Be careful of flooded cars. Hurricane/surge, and other flooding, or anything "fire" is best to walk away.

Those rebuilt from collisions are often good deals, as the numbers/factors to get to a "totaled" value add up fast, but actual costs to rebuild can be less, so the net is obtainable for a shop and the "value" is there.

If you find such a deal, the cost of having it professionally evaluated by a reputable mechanic, is worth the cost.

Complete hit and miss. No way to tell without a through inspection by someone that knows what they are looking at.
No way I'd consider buying one unless I was going to drive it forever. Otherwise, when you try to sell or trade the car, the value will be much lower and you'll see why it's so cheap. Most likely you won't be able to finance and maybe insure. Check with your agent first.

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Originally posted by 220-9er:
Complete hit and miss. No way to tell without a through inspection by someone that knows what they are looking at.
No way I'd consider buying one unless I was going to drive it forever. Otherwise, when you try to sell or trade the car, the value will be much lower and you'll see why it's so cheap. Most likely you won't be able to finance and maybe insure. Check with your agent first.

Took the words right out of my keyboard.

It’s given to salvage title vehicle that have been repaired to “roadworthy” status. Everything depends on what the damage was, what repairs were done, who did the work and how well, etc. keep in mind that while you can get liability coverage for them it can be hard to get full coverage insurance. Personally I’d avoid one but some people have had good luck.

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Originally posted by PowerSurge:

quote:

Originally posted by 220-9er:
Complete hit and miss. No way to tell without a through inspection by someone that knows what they are looking at.
No way I'd consider buying one unless I was going to drive it forever. Otherwise, when you try to sell or trade the car, the value will be much lower and you'll see why it's so cheap. Most likely you won't be able to finance and maybe insure. Check with your agent first.

Took the words right out of my keyboard.

Agreed. Excellent advice. I bought a salvage Jeep Wagoneer Ltd (think standard Cherokee XJ with wood stickers and 4 headlights instead of 2) years ago that had been totaled after running up and over a curb, heavily damaging the front end. It was repaired properly and had lowish miles on the AMC motor and was an excellent bargain. Bottom line- have a reputable mechanic at the ready to end-to-end the vehicle.

I’m gonna say “run”.

I grew up with a Dad in autobody, and I've owned 2 cars with rebuilt titles. At the time, Chicago had a shortage of autobody shops so insurance companies were totaling lightly hit vehicles that would've been repaired most everywhere else. For example, the first vehicle the alignment machine confirmed no frame damage so the repair was 100% bolt on used parts and a paint job. Of course, we had access to a 20,000 square foot body shop on nights and weekends, and all the work was done to Dad's meticulous standards and with Dad's discount on parts.

I haven't lived in the same time zone as Dad for 17 years, and during that time I've considered buying 0.0 cars with a rebuilt title. Too much of a crap shoot without Dad's hands on involvement.

Wouldn't touch one with a ten foot pole.

I have been thinking about this lately. Seems like a good option for a low cost hobby vehicle (not collectible) or a daily driver for long term ownership. Collision of course, as stated above flood or fire nope!

Id like a cheap late model ecoboost mustang as a project car.

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Those rebuilt from collisions are often good deals, as the numbers/factors to get to a "totaled" value add up fast, but actual costs to rebuild can be less, so the net is obtainable for a shop and the "value" is there.

I agree with Sigmonkey. You can get a good deal. It's amazing how little it takes to 'total' a car, especially if it's not new. But it does take time to find exactly what you are looking for. In Missouri, there is a 'salvage' title and a 'prior salvage' title. A 'prior salvage' vehicle has been through a special State inspection to get that title.

I've bought 5 from CoPart over the past couple of years. I do some of the work myself and have a retired body shop owner I know who still does a little from his house. I also try to buy specific models where I know the value.

The biggest deterrent to most people is the inability to finance and/or insure vehicles with rebuilt titles. That's not to say it can't be done, but inquire up front before attempting to acquire one of these vehicles. That said, I've seen some terrific deals on rebuilt cars. And as chellim noted, totaling a car today doesn't mean quite what it did years ago.

I have purchased several "totaled" vehicles. All have been excellent, but I knew what the original damage was. Only problem I ran into is when years later there was a engine fire due to an animal nest on top of the engine. My insurance would only pay a moderate amount due to the lower value of the vehicle.

Unless you really know cars and exactly what to look for, what questions to ask and when to walk away, I would not recommend buying a branded title vehicle. I would also not recommend it if you're not buying a car to hold for a very long time as the resale value will be much lower than the same vehicle with a clean title. So basically, you're buying it to hopefully run it into the ground.

As others have said, many banks will not finance branded title vehicles and if they do, the allowed loan advance will be much lower than their standard program. Insurance companies will often not finance them either (because they have a hard time establishing what its worth) and when they do premiums will be higher.

A couple of exceptions to the rule though. Hail damaged vehicles can be a solid value provided you know the extent of the damage and can confirm the quality of repair, as the damage is usually just cosmetic most of the time. The second time you can feel more comfortable buying a branded title vehicle is a manufacturer buyback vehicle (lemon law cars) although again, this is a crap shoot. Some manufacturers will buy a car back for very minor things just to make a customer happy and other times they'll replace entire components to rectify issues (replace the whole engine or trans if replacing parts didn't fix things). They'll repair the vehicle to factory spec, sell it through their own auction and it will end up on the dealers lot again with an enhanced factory warranty. The factory finance arm will often finance these and insurance companies will often insure them.

Last point, I would never, ever under any circumstances buy a flood damaged vehicle. No matter what the seller tells you, these cars often have issues pop up seemingly out of nowhere months and years after the flooding occurred. It's often electrical in nature and these issues are very hard to rectify. The water gets into the harness and electronics and rots things over time as the salt and moisture work with the electrical current to corrode things.

Well my experience for the past 20 years with the ONE dealer I have delt with has been nothing but POSITIVE...How so you ask....

To date I am currently driving my 7th Salvage (rebuilt) title vehicle....which is a 2012 Toyota Tacoma Crew Cab PreRunner that I purchased 18 months ago with 41,000 miles on it.. and paid $16k for it....and my oldest son is driving our family Honda vehicle that is a 2010 that we bought from the same dealer in 2010 when it had 4,100 miles on it. Today the Honda Accord has 136,000 miles on it - with ZERO issues except for normal maintenance.... Why do I think I have had such good luck - well I will say for the following reasons....

1 - My dealer is a family owned and family run business and I deal with the husband and wife that own this business...The dealer I started dealing with resides in Alabama and by state law they are required to provide full disclosure as to why the vehicle was totaled and my dealer not only discloses everything they provide pictures of the vehicles before they ever start their repairs if repairs were required...Three vehicles were totaled due to flood or water damage (one was totaled because the owner left the sun roof open and it rained 2” one day so they totaled the car)...My Toyota truck was flood damage totaled and the only thing this dealer had to do was replace the carpet and padding and the starter...

2 - You usually save 30% up front from the same vehicle if it was not a salvage title vehicle BUT you also need to understand that when you get ready to sell it you will see that same percentage value loss....

3 - Get to know your dealer by asking for previous purchase references...We did this before we bought our first one and the three people we spoke with provided honest feedback...

4 - Make sure your dealer provides a warranty - mine does - 1 year bumper to bumper with no mileage limit....Out of all of the vehicles we have purchased only one had to go back for a AC leak that they fixed the same day and it never leaked again...

5 - We do not finance - We pay cash - and this can always benefit the buyer...

6 - All salvage vehicles in Alabama are required to go through a on site physical inspection by a Alabama State Inspector before any vehicle can be re-sold and that inspector will provide a document and place a sticker on the inside door panel indicating that that vehicle has passed the required state inspection for safety and documentation...

7 - And finally understand what you are getting into - as others here have said there are some shady dealers out there...You also need to understand that you will pay full value for insurance on your salvage title vehicle and if damaged the insurance company will repair it just like any other vehicle BUT if you total the vehicle the insurance company will reduce your totaled payout by 30-35%...I know because between my two sons they totaled two....

Why did we decide to go this route - Saves a little money up front and allows us to purchase a vehicle 2-3 years newer than we would otherwise for the same money...Having high school boys just getting their license we decided to purchase each a salvage titled vehicle after about a year of supervised driving so if anything happened, it would not be in my wife or my vehicle that was involved in any type wreck, and this pathway paid for itself - twice... We ONLY buy from this one dealer and I do not think we would buy from another one if this one closed shop...

My dealer sells 20+ vehicles a month and they range from all types of Honda’s, to full size pick ups of all brands, to Nissan vehicles, to Infiniti and Lexus, and more - you get my point...

The vehicles we have purchased to date from this one dealer are:
Lexus G35 Sport Coupe
Honda Accord
Honda Accord Coupe
Scion Xc
Honda Civic
Lexus RX350
Toyota Tacoma Crew Cab PreRunner

And my dealer already has me on the list for when they purchase for resale an Audi, Lexus, or Acura SUV that has three row seating....

For my family and I - purchasing salvage title vehicles has worked well for us.....Email me if anyone wants the name of my dealer....Mark

This message has been edited. Last edited by: sigarmsp226,

I've brought quite a few of them but in all cases I knew the history (I.E. damage source).

Think hail damage vs. submerged flood vehicle, for instance. I saw some really good deals on hail damage high-end cars- low mileage and in excellent mechanical shape.
I bought a number of European cars when I had a business that had experienced small engine fires. Enough to total but usually just a black spot on the hood paint outside. We pulled the engines if necessary and replaced with used guaranteed, replaced the front clip and new wiring harness, windshield, etc and paint and trim.

Obviously not for everyone, but if you have mechanic/body connections or are willing to touch a wrench there are some deals.
If you don't know the history it's a crap shoot-

Unless you are very well versed in vehicle repairs, I would avoid it.

The insurance company totaled it because it was cheaper than trying to fix it or because state law says the damages was too high (usually 75% of the value)

So if you have a 20k car with 15k in damages and the rebuilds bought it for 3-5k, they don't have a lot of room to make a profit IF THEY DO THE JOB RIGHT.

And that's where the problems lie, the rebuilds cutting corners to save his profit margin.

There are very few cars these days that can be hit, totaled and rebuilt cost effectively without comprmising safety.

I have personally seen dozens of rebuilt vehicles that look fine on the outside and are total hack jobs inside zip ties, jb weld, self tapping sheet metals screws, inches of bondo, and more.

Not worth it to me unless it's a first or second gen Honda CRV that was hit from behind. They have no rebar so the floor pan always gets messed up which totals them. Floor pans aren't a safety item so you can just beat them out and save a bunch.

That's why I said you have to really know what you are looking at to make it work out.

No experience with branded titles.

It was enough problem selling one of our cars several years ago. Carfax report correctly showed it had collision damage with airbag deployment.

Many dealers will not take those in on trade. Dealer group I worked for had a policy of not accepting those with branded titles or negative Carfax reports.

I agree with most advice. My current truck is rebuilt. But I bought it damaged and had the work done. But also keep in mind that anytime you buy a used vehicle it's a crapshoot unless you personally know its history.

Rebuilt titles?

You can't feed them through the paper handling unit on most copiers because the tape gets snagged and they jam.