A reconstructed title is actually referred to as a Rebuilt Title, and it’s a type of vehicle title that indicates the car has been significantly damaged, usually in an accident, and then underwent extensive repairs to make it roadworthy again.
Related Articles and Sources:
- What Is A Rebuilt Title
- What is a Salvage Title
- How to Turn a Salvage Title into a Rebuilt Title
- Banks That Finance Rebuilt & Salvage Titles
- Rebuilt Title Insurance Cost
Table of Contents
What is a Reconstructed Title?
Here are the key points about reconstructed titles:
- A reconstructed title is issued for a vehicle that was previously declared a total loss or given a salvage title by an insurance company due to major damage.
- After the vehicle is repaired to meet state safety standards, it can be issued a reconstructed/rebuilt title instead of the previous salvage title.
- To obtain a reconstructed title, the owner must provide documentation proving the vehicle has been properly repaired, such as receipts, photos, and inspection reports from licensed mechanics/body shops. The car must also pass a state safety inspection.
Differences from Clean Title
- A reconstructed title indicates the vehicle has sustained significant previous damage, unlike a clean title.
- Cars with reconstructed titles generally have lower resale values compared to similar vehicles with clean titles.
- It can be more difficult and expensive to insure a car with a reconstructed title, as some insurers may deny full coverage or charge higher premiums.
Pros and Cons
Pros:
- Lower purchase price than comparable clean title vehicles
- Thoroughly repaired to meet safety standards
Cons:
- Potential for hidden damage not addressed in repairs
- Difficulty obtaining full insurance coverage
- Lower resale value in the future
- Difficulty financing from major lenders
In summary, a reconstructed title signifies a vehicle’s significant previous damage history and extensive repairs required to make it roadworthy again, which impacts its value, insurability, and resale potential compared to clean title vehicles.
