Some of the most common problems with buying a rebuilt title car include finding financing, obtaining affordable insurance coverage and meeting legal requirements when resorting the car to a drivable state. Buyers who do obtain coverage also face additional issues in the event of an accident.Continue Reading
Obtaining third-party financing for purchasing a rebuilt title car, also known as a salvage title car, is difficult for many buyers because the lending institution may view these cars as too much of a financial risk. These vehicles have extensive levels of damage that often require significant financial investments to restore after the initial purchases. Many buyers are also unable to receive proper insurance coverage due to the damage of the vehicles. Many insurance agencies view these cars as more likely to experience issues on the road due to the past damage.
Similarly, if the driver receives insurance coverage and gets into an accident, the insurance company may claim that the incident was a result of the past damage and pay out a lower amount. Drivers also face many legal issues with restoring the vehicles so that they comply with all the appropriate federal and state driving laws. This may include passing vehicle emissions tests, meeting safety standards and passing a vehicle inspection from a police officer.Learn more about Buying & Selling