Used Cars: Rebuilt Title Ontario
Used Cars / Rebuilt Title Ontario: If you are in the market looking to buy a used car, sometimes you will see “Rebuilt Title” in some of the listing. Usually those listings in most cases come with cheap prices.
What is a Rebuilt Title Car?
Salvage/Rebuilt Title is given to a vehicle in Ontario which has been involved in a severe accident or some other severe damaging event (floods, hail, vandalism). Insurance companies did not deemed it worth repairing it as market value of the car was lower than repair costs.
An insurance company will instead brand vehicle title as “Salvage” and sell it at auction. After vehicle has been repaired and passed a safety inspection in Ontario, will be rebranded as “Rebuilt Title” and can be sold again. Once a vehicle is rebranded “Rebuilt” it can not be reverted again to clean title, it will remain as a rebuilt title permanently.
Used cars which are branded Rebuilt Title in Ontario do not have the same value as used car with a clean title. Rebuild cars will probably sell at about 30% discount on market prices when compared to same cars with clean title.
There is good reason for it, buying a rebuilt vehicle is taking a chance while hoping repairs are done professionally. However, its hard to tell if repairs are done properly. Where it was rebuild, how long repairs will last, what kind of parts were used…etc.
( If you are also looking for a fast and easy solution to sell a car, more here on “How To Sell Your Car Fast” in Ontario)
Should You Buy a Car with Rebuilt Title?
Well, that depends. In vast majority of rebuilt cars, structural integrity of the car has been compromised. You should weight all your options before buying a car with a rebuilt title.
This is not to say a vehicle branded Rebuilt Title in Ontario is not safe to drive. If repairs were done by a reputable shop without cutting corners, differences with a clean title vehicle should be minimal. However, if repairs were not done properly, structural integrity will be dubious to say the least.
One thing though, people are wary about cars with Rebuilt titles. It will be hard to resell it if you purchase one. Be prepare to drive it for a long time or if you sell it, you should expect a lower price for your car.
Insurance might be a problem too. Insurance companies don’t like to insure rebuilt tile vehicles. Quite hard to estimate vehicle value and they don’t like to take a chance.
How do you know if a Car has a Rebuilt Title?
That’s easy. For reason mentioned above, in Ontario a title of a vehicle will be labeled on vehicle ownership document and UVIP (What is UVIP). UVIP (Used Vehicle Information Package) can be purchased from any Ministry of Transportation location in Ontario.
Ontario vehicle ownership registration has also information about branding (image below). It will specify if a car has a rebuilt title or not. It will either show “None” which means title is clean or “Rebuilt”. UVIP which you need to buy prior to any purchase or sale of a car provides same information regarding branding.
If you are looking to purchase a rebuilt title car in Ontario, and repairs are done by a well known and reputable Mechanic/Bodyshop or Dealership, these used cars can be a good deal since you only pay a fraction of market price.
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