It depends upon the actual type of title the car from the auction would have and your state's laws whether it could be driven on the street immediately or not. In general if a car is found to be totaled out and thus is required to have its clean title changed out for a branded one, normally one saying salvage, than it is not roadworthy until the car is repaired and it passes an inspection. In some states there are exceptions such as those vehicles that are totaled out for something cosmetic such as hail damage.
So in many states the salvage titled vehicle needs to be inspected and found roadworthy so that the salvage title is turned in and you receive a rebuilt title. If you buy a car that has a rebuilt title already or something like a repo, lease clean title, etc than it may already be roadworthy, or it may not be, it really depends upon the laws of your state.
State's definitions of a rebuilt title may vary however in general when someone speaks of a vehicle title with a rebuilt title they are referring to a vehicle that had was a salvaged vehicle (usually with a salvaged title) at one point and was repaired and inspected so that the state granted them a rebuilt title showing the car is roadworthy once again.
A basic definition which CarFax and many others use for a Rebuilt/Reconstructed vehicle is a salvage vehicle that has been repaired and restored to operation. These vehicles are often severely damaged before they are rebuilt and refurbished parts are typically used during reconstruction. In most states, an inspection of the vehicle is required before the vehicle is allowed to return to the road as we mentioned.
For example in New York they state that if a salvage vehicle is rebuilt for use on roadways, the DMV must examine it before the DMV can issue a new title certificate or registration. A NYS title certificate issued after the date of May 18, 1999 for a rebuilt salvage vehicle displays the brand, "Rebuilt Salvage."
In NYS DMV Commissioner's Regulations require the DMV to mark or "brand" a title certificate if:
- a vehicle is eight model years old or newer, and
- the owner indicated that the vehicle was destroyed or received damage of 75% or more of the retail value of the vehicle at the time the damage occurred.
- The owner must mark the box next to the statement on the back of the title certificate to certify the damage
In Colorado when a vehicle is damaged beyond being safe on the highway without extensive repair, it will be deemed a salvaged vehicle, and the title will reflect that. However, in some cases a vehicle can be repaired and bought back to life even though it will always carry the "rebuilt salvage" designation. Rebuilt from Salvage on a title indicates the motor vehicle is now roadworthy.
In Nebraska once a vehicle with a Salvage Certificate of Title has been repaired, a Vehicle Inspection must be performed and a Vehicle Inspection Certificate must accompany the application for title, before a new title can be issued and the vehicle can be registered. The new title is required to have the words “Previously Salvaged” branded on the face under the designation, Legends. All brands must be carried forward on any titles issued thereafter and will also appear on any initial and subsequent registrations issued for that vehicle.
In California they do not have a rebuilt title but instead a "revived salvage" vehicle. They define it as a branded title given to a vehicle that was reported by the owner or insurance company as a total loss (salvage vehicle) and has been restored to operational condition. After being repaired and re-registered with the DMV the salvaged vehicle can be re-titled as Revived.
To find out about your state's type of branded titles and what is allowed on the street legally and which are not, contact your state's Department of Motor Vehicles directly with your questions.
If you have or are looking to buy a car with a rebuilt title than keep in mind that sometimes it is not easy to find auto insurance for a car with a rebuilt title since many insurance carriers do not provide coverage for vehicles that have had severe damage. We can help.
In most states, we can insure it through Progressive. All you have to do is enter your zip code above and get a quote. At the end of your quote, select Progressive and we will ask all the necessary questions to determine eligibility and get you a policy.
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