Is a Car With a Rebuilt Title Safe to Drive?

If you’re in the market for a new-to-you vehicle, you’ve probably noticed how high used car prices are these days. So, when you finally find one that checks all your boxes—make, model, trim, and color—it can feel like striking gold. But there’s a catch: the listing says it has a rebuilt title.

That sounds a little intimidating… but what does it really mean?

In this article, we’ll break down what a rebuilt title is, whether it’s safe to drive a car with one, and how you can protect yourself before making the purchase.

What Is a Rebuilt Title?

A rebuilt title means that the car was previously declared a total loss by an insurance company—usually after an accident, flood, fire, or other significant damage—and was issued a salvage title. After the vehicle was repaired and passed state inspections showing it was roadworthy again, the salvage title was upgraded to a rebuilt title.

In short,  vehicles that are deemed to be a total loss and considered unfit for the road, can sometimes be repaired and cleared for driving. When this happens, a new “rebuilt” title is issued and the car can be sold as drivable

What’s a Salvage Title?

Before a car can have a rebuilt title, it must first be given a salvage title. A salvage title is issued when the cost to repair a vehicle exceeds a certain percentage of its value—typically around 75%. At that point, the insurance company pays out the claim, and the car is often sold at auction as-is.

If someone buys the car, repairs it, and it passes inspection, the state may issue a rebuilt title.

When Is a Vehicle Not Eligible for a Rebuilt Title?

Not all salvage vehicles can be repaired and re-titled. A car is typically not eligible for a rebuilt title if:

• It has sustained extreme structural or fire damage.
  If the integrity of the frame is compromised beyond repair, or if the vehicle has been burned to the point that key safety systems (like airbags, wiring, or seatbelts) are irreparable, it may be deemed junk.
  
  
• It was declared a total loss due to severe flooding.
  Water damage—especially saltwater exposure—can ruin electronics and create long-term safety issues. Many states will not allow flood-damaged vehicles to receive a rebuilt title. However, North Carolina does allow flood damaged cars to be restored and given rebuilt titles, so buyers here must be very careful when purchasing one of these cars.
  
  
• It has been dismantled for parts.
  If the vehicle was sold as a parts-only car and the title is labeled non-repairable, junk, or certificate of destruction, it can never be re-registered or driven again.
  
  
• The title type disqualifies it.
  Some vehicles receive a non-repairable title instead of a salvage title. These cannot be converted into rebuilt titles under any circumstances.

Benefits of Buying a Car With a Rebuilt Title

In certain situations, there are benefits to buying a car with a rebuilt title, especially if you have a tight budget, or have limited options.

• Lower Price: Vehicles with rebuilt titles are usually priced 20–40% below similar clean-title vehicles.
  
  
• Availability: In a tight market, rebuilt title cars give budget-conscious buyers more options.
  
  
• Thorough Inspection History: To earn the rebuilt status, the vehicle must pass a rigorous state inspection process.

Risks of Buying a Car With a Rebuilt Title

However, the lower cost does not come without a price.  There are some serious risks that should be considered before buying a car with a rebuilt title. 

• Unknown Quality of Repairs: Just because a car was repaired doesn’t mean it was repaired well. Shoddy workmanship or hidden damage can pose future problems. An independent auto appraiser, like Auto Appraisal Network of Charlotte, can uncover this type of thing fairly easily.
  
  
• Lower Resale Value: Rebuilt title vehicles generally have a lower resale value and can be harder to sell later.
  
  
• Limited Insurance Options: Some insurers may offer limited coverage or refuse to insure rebuilt title vehicles altogether.
  
  
• Hidden Damage: Structural issues, frame damage, or problems with electronics and safety systems may not always be obvious, but an independent auto appraiser can tell you if the car you’re looking at appears to have these types of problems.

Before You Buy: Protect Yourself With an Independent Appraisal

While it’s always smart to get an independent appraisal before purchasing a used car, it’s essential when considering a vehicle with a rebuilt title, especially in North Carolina. The hurricane last year means that there are likely a high number of used cars that suffered flood damage, and since NC allows flood damaged cars to get rebuilt titles, you need to make sure you know what you’re getting, or getting yourself into.

A certified auto appraiser will thoroughly inspect the vehicle inside and out, looking for:

• Poor-quality repairs, cover-ups
• Unreported damage
• Frame or structural damage
• Non-OEM parts
• Mechanical or safety issues
• Signs of prior water or fire damage

They’ll then compile a detailed, unbiased report outlining the car’s true condition and market value—helping you avoid costly surprises.

Trust Auto Appraisal Network of Charlotte

Auto Appraisal Network of Charlotte is led by David Bregoli, a former insurance adjuster, volunteer firefighter, and lifelong car enthusiast. As an independent auto appraiser, David brings a unique blend of insider industry knowledge and a passion for vehicles to every inspection.

Whether you're buying a car with a rebuilt title or just want peace of mind, David can help you make an informed, confident decision.

Schedule a pre-purchase inspection today and protect your investment.

 Serving Charlotte and surrounding areas. Call (704) 703-4801 to schedule a pre-purchase inspection today!

Auto Appraisal Network - Charlotte specializes in appraisals for classic, custom and collector vehicles, including cars, trucks, SUV's, motorcycles, boats and personal watercraft.  We do appraisals for insurance policies and claims, such as diminished value and total loss, probate, bankruptcy, divorce, financing, fair market value and pre-purchase inspections. 

Our appraisals are certified and accepted by the legal system, insurance companies and financial institutions. When you need an accurate, fair assessment of the value of your ride, you need Auto Appraisal Network - Charlotte. Call (704) 703-4801 to schedule your appraisal today.