Rebuilt Title Value Loss: How Much?

Do you want to find out how much value your rebuilt salvage car has lost from its rebuilt title? If so, you’ve come to the right place. Determining the market value of a rebuilt car or salvage title requires a lot of complex factors, such as the vehicle history report, extent of damage, and more.

At Diminifaq, we want to help you make the best financial decisions. Our personalized diminished value report can help you receive a fair market value for your vehicle so that your insurance company cannot attempt to take advantage of your resale value. Continue reading to learn everything about salvage title and rebuilt title car value depreciation.

What Are Rebuilt Titles and Salvage Titles?

After a car accident, you or the other driver’s auto insurance often must pay for the damages. If the total repair cost is more than 50% to 90% of the total car value, the insurance company will “total” your car and offer a cash payout for the total loss instead. The percentage varies from state to state.

The car insurance organization now possesses the totaled car and transfers the title from your name to a salvage title. You cannot operate a salvage vehicle legally until you complete enough repairs to pass state inspection.

You can change the certificate to a rebuilt title when you complete adequate repairs on the salvage title. Rebuilt vehicles are street legal and can pass inspections. You can sell the used car to potential buyers if you wish.

Why Do You Need to Know Rebuilt Title Car Value Total Losses?

Often, when your car insurance provider decides to total your car, you have two options:

  • Accept the total loss cash amount and use it to buy a new vehicle with a clean title.
  • Buy the salvage title car back, repair it, and obtain the rebuilt title.

If you wish to follow the second option, you must understand how much value you may lose in order to prioritize your financial protection. In some scenarios, purchasing salvage title cars can benefit you, although sometimes, you may face many issues down the road. Most salvage vehicles will require expensive work in the future, especially if the initial damage did not have adequate repairs.

Pros and Cons of Purchasing Salvage Title Vehicles

Salvage title cars offer different pros and cons, depending on your overall objectives.

Benefits include:

  • Cheap purchase prices: Save a ton of money by purchasing a car that’s substantially below its previous value.
  • Occasional rare finds: You can potentially find a totaled vehicle that doesn’t have much damage.
  • Part profits: You may use the parts for another vehicle or sell them and make a profit.

Negatives include:

  • Dangerous driving conditions: Some salvage cars have improper repairs and malfunctioning parts that can create many dangers. For example, a faulty airbag could cost your life.
  • Misleading sales: Title owners might try to convince you that the car only has cosmetic problems and nothing major. You usually shouldn’t believe this claim because if it were true, the car wouldn’t be totaled.
  • The trouble with lenders: Many lenders may not offer you a loan for a salvaged vehicle. You may also have issues finding insurance.
  • Resale values: The car’s value will only continue to plummet as you own it. If you wish to re-sell, don’t expect a huge profit.

Loss Severity in the Eyes of an Insurance Company

Before discussing rebuilt title vehicle depreciation levels, you must understand the varying levels of severity that insurance adjusters consider when determining total loss. A used vehicle that experienced flood damage is much different than a stolen vehicle, yet both can lead to a total loss.

In general, car insurers consider three levels of depreciation when considering your vehicle’s value:

  1. Normal wear and tear depreciation: All cars naturally lose value over time. When driving 10,000 miles per year, your vehicle may lose an annual 14% of its value.
  2. Damage depreciation: Vehicle damage reduces the car’s value drastically. If you crash an old vehicle with high mileage, your insurance will likely opt to total the car.
  3. Rebuilt vehicle depreciation: Rebuild values depend on the vehicle’s driveability, the quality of replacement parts, and the overall repair craftsmanship. Even perfectly repaired salvage cars experience substantial depreciation.

Keep in mind that your payout amounts will also depend on the type of insurance you have,: collision, comprehensive, or full coverage.

How Much Does a Rebuilt Title Devalue?

Unlike luxury vehicles or brand new motor vehicles with a clean title, you cannot just go into the Kelley Blue Book to find your salvage title car or rebuilt title car value. Instead, you must consider the vehicle’s age and mileage, make and model, damage severity, and current market trends.

The average rebuilt salvaged car loses 20% to 40% of its pre-title-change value. This percentage can equate to a loss of thousands of dollars.

To find an exact number, you should have a professional appraiser help you evaluate the vehicle. At Diminifax, we will help you calculate the diminished value so that you can receive the fairest settlement possible. Contact us today at {CONTACT NUMBER} to talk about your options!