Rebuilt on Title VALUE

[JWiiiams]

My wife and I are looking at a 2004 Classic that was damaged. On the title it will say "rebuilt". The person who rebuilt the corner front panel did an excellent job and it seems as good as new. Does the "rebuilt" stamp that is permanently on the title hurt the value for resale down the road if we choose to sell? Also for now, how would it affect the purchase price we pay?

[Lumatic]

I think the answer to both your questions is "depends". Sounds like a "rebuilt" title is the same as a "salvage" title in other states. I would think that for resale for a prospective buyer this would be a factor, even if the damage was cosmetic and not structural. The other side of the coin is, if I was a buyer, I would expect a lower price. I don't think there is any formula for the value of a "rebuilt". If you keep the trailer for 10 years or so I think the difference in value will not be as big a factor.

If I were a buyer I would want more information on the cause of the damage: accident, fire, flood, etc. I would be real cautious about flood damage. These trailers can look great but have serious hidden problems such as mold.

[JWiiiams]

Thanks so much. That is helpful. The damage from from an auto accident. The seller is looking for pictures to let me see a photo. Much thanks!

Jamie

[Belegedhel]

I would say that the answer to both your questions is "yes."

Look at it this way, let's say the trailer was worth $20k before it got damaged. The Insurance company looks at what it is going to cost to repair and decides to call it a total loss. So they pay the owner the $20k, and then sell the trailer for salvage value at auction. Someone picks the trailer up at auction for $10k, then puts $4k into repairing it. They now sell it, asking $20k, hoping to make a tidy profit of $6k.

Now, there are plenty of cars and trailers out there that get damaged and repaired that don't have a salvage/rebuilt title, so you know the damage had to be pretty substantial in order to win the "total loss" categorization. I my mind (and I would hazard a guess to say in most people's minds as well) having a rebuilt title is a big negative. Would I cautiously buy a trailer with a rebuilt title, sure, maybe, but the seller would have to prove that the repairs were done correctly, and I would still expect a discount, knowing that they are making a tidy profit regardless, and I am taking on all the risk when I write the check.

I have never bought a new car, always buy used. But when I buy used, I always employ a service such as CarFax, which will help identify not only salvage titles, but any recorded accident as well. They also make guarantees, to further reduce your risk. People tend to avoid cars with rebuilt titles, and even cars with a history of any accident that has been repaired. As a result these (repaired, not totaled) cars usually are discounted 5-10%.

Also check with your insurance company and bank, if you are planning to take out a loan. These institutions are very cautious around salvage/rebuilt titles.

good luck!

[Kemblkr]

A rebuilt title from a book value standpoint will decrease it significantly. If the repair was done right I would pay 25% less for a unit having a rebuilt title vs. a comparable unit if I really wanted it!

We bought an Audi TT with a rebuilt title and was very happy with it but you do take a hit on resale value which is good if you are buying.

You also have to check with insurance companies on insuring a unit with a rebuilt title as some will say no or maybe only provide liability coverage

If done right and you get a great deal they can be to your advantage. If totaled due too flood then you should run away as fast as possible.




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[Lumatic]

Originally Posted by Belegedhel

Now, there are plenty of cars and trailers out there that get damaged and repaired that don't have a salvage/rebuilt title, so you know the damage had to be pretty substantial in order to win the "total loss" categorization. !

My 71 was totaled by the insurance company when I scraped most of one side going through a gate. The damage was cosmetic, but would have cost more than 10K to fix. The insurance company totaled the trailer and gave me a choice of buying the trailer for 15K or paying me 11K and I keep the trailer. I no longer worry about scratches.

[TomKirk]

In Washington State, the Salvage Title is a disclosure to buyers that the vehicle in question has sustained damage above and beyond Blue Book value. Additionally, there is an accompanying "salvage sticker" affixed to the driver's "A pillar" that is unlawful to remove.

Tom

[Boxite]

If you are buying it for resale... then you would already be familiar with this issue.... therefore, I'm guessing you intend to keep this thing, in which case it's CURRENT condition is the important thing.
If ten years down the road you decide to sell it, you'll be a very convincing former owner that the repairs were durable, and it will then have lesser meaning that the "repaired" title exists than it does to YOU.
On the other hand, don't forget to run this by your insurance agent. A young college-student friend of mine was given a car by his father which looked very good indeed. But when he was involved in an accident (other party's fault), the other party's insurance company liability-policy refused to pay him what he thought the car was worth, claiming they had no basis to evaluate since it had previously been written-off.
Possible solution: Get a written appraisal from a qualified dealer. (Not a bad idea anyway, since you're trying to decide what it's worth also.)

[rvb]

I was looking at a rebuilt trailer with a salvage title and asked my insurance agent about "salvage" or "rebuilt" titles (in Texas). He said you can only insure it for liability coverage not for damage reimbursement. That would lower the value since you can not protect your investment.

[ldireland]

There are lots of nice AIrstreams out there for sale with a clear title. God forbid something should happen in a couple of years that causes the need for a quick sale. Salvage titles don't sell quickly and they won't bring 25% of what a clear title will bring. Then the insurance issues....I can't see it as being worth the risk or problems it will cause.

[CRH]

I would have no problem buying a trailer as described for a discount due go the title. I probably wouldn't pay more than 60% of what a trailer just like it with a clear title sells for.

[ROBERTSUNRUS]

Hi, very simply; You should pay less for this rebuilt trailer and expect to get less when you decide to sell it. This doesn't mean this is a bad trailer, but it has a bad reputation.

[Fyrzowt]

It's my understanding that rebuilt and salvage are different animals. I bought a Lexus with a rebuilt title a couple of years ago. Damage was to the R/F corner, front end. In Texas, I was able to fully insure the car. When I titled it here, the DMV lady was specific about whether the title was salvage or rebuilt. FWIW.

[Moflash]

Rebuilt indicates a previous total loss that has been rebuilt ,every state is different in terminology.Some brand title salvage,junk etc.Some allow a change to rebuilt once repaired and deemed safe to use on the highway.In some states a salvage title remains branded salvage fixed or not forever.


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[Fishbait]

So I am thinking it is really hard to insure a salvaged title? Even with all repairs and lots of costly improvements inside that I have made over the past couple of years.

[Bill M.]

Seems odd that they would total a trailer for one corner panel. Probably a $3500 job. I think the trailer with the rebuilt title is worth significantly less than an equivalent trailer with a clean title. However if you can buy it for the right price and use it for a while the resale value is probably a moot point. And I think you will be pretty much self insuring the value of the trailer. I would get a real good price or look elsewhere.