Questionhello, i am in the market for a car and i have found several that i am interested in. one happens to have a rebuilt title. i live in georgia and the vehicle is in florida. i am well aware of the potential danger/high risk of purchasing a car like this but i was curious about a few things...
1. if i had the vehicle inspected for remaining frame damage and also ran the obvious vin reports and everything seemed to be okay now, would it be kind of safe to get into this deal??
2. i have heard that you cannot get financing on a car with a rebuilt title. is this true??
3. can i not get an extended warranty on a car with a rebuilt title even of the warranty only covers mechanical issues??
4. and, finally, if you do not offer the fact that the title is rebuilt to the insurance company, are you forfeiting any coverage if something does go wrong?? or should i just disclose this info up front??
any help is greatly appreciated!! thanks!!
Answer1) Since I can't see the car or its documentation for myself, it's impossible for me to answer this question. What if further inspections failed to reveal more serious damage? Were the air bags deployed in a previous accident? And if they were, will they work in another accident? Will the structure hold up in another accident and protect your family, or will it fold like a wet paper bag? There's really no way to answer these questions.
2) It depends on the bank, and the state you're in. Here in New York, the bank doesn't hold the title, and some local banks don't even require a copy of the title. But if the bank holds the title in Georgia until the loan is paid, then you may have a problem. There's only one way to know for sure: call your bank and ask them.
3) Since there's no way to know what affect a previous accident may have on the mechanicals of a car, most warranty companies won't cover a vehicle with a rebuilt title. Ask for a copy of the warranty ahead of time and see if there are clauses detailing what they won't cover.
4) Insurance companies look for reasons to deny coverage in case of an accident. If you don't disclose the rebuilt title upfront, you're only asking for trouble if have to file a claim down the road.
As you can see, you're really taking a huge chance by buying a car like this. I guess I have to ask: with all the vehicles for sale out there, why take the chance on this car? Is it really THAT much cheaper than a car without title issues?
