What Is a Rebuilt Car Title?
When shopping for used cars in the UAE, buyers come across different types of car titles. It is crucial to understand these titles, as each title reflects the vehicle’s condition. Among these titles, one title that raises questions is the rebuilt title. As evident from the title, it refers to previously totalled vehicles that have been rebuilt to be roadworthy.
Let’s discuss the rebuilt title cars a little further and elaborate on their pros and cons.
Rebuilt Car Title Explained
After an accident, the car insurance company evaluates the vehicle’s condition and labels it as repairable or totalled. Owners can claim total lost car insurance and get a replacement vehicle. Whereas, the accidental vehicle is named ‘Salvaged Title Car’.
The salvaged cars are then sorted according to their conditions. Amidst these categories, vehicles with minor damages are repaired and titled as rebuilt cars. During the rebuilding process, the car is repaired and tested as per the government standards to make it roadworthy. That said, such vehicles that have been repaired and made roadworthy after being totalled in a car accident are termed as ‘Rebuilt Title Cars’.
Pros of a Rebuilt Car Title
Here are some pros of buying a car with a rebuilt title.
Potential for Profit
In a few cases, the damage of a rebuilt title car is not significant and can be easily repaired. That said, such vehicles are a potential source of earning higher profits. Simply, buy a vehicle from an auction at a total price, do minor repairs and sell it at a rebuilt title price.
Please remember that the potential profit of rebuilt title cars is subjective and can vary from vehicle to vehicle. Therefore, it is recommended to seek professional assistance prior to making any decision.
Source of Spare Parts
Choosing quality spare parts for your vehicle can be overwhelming for many, especially when you are not an auto expert. This is when the rebuilt title cars came into the picture. Owners can opt for a rebuilt title car and use its original spare parts to repair their existing vehicle.
Besides rebuilt title cars, you can also find used auto accessories for sale in the UAE on dubizzle as per your budget.
Lower Cost
The cars with rebuilt titles are usually available at a lower market price, contrary to a conventional vehicle. This is because, in rebuilt title cars, all the major components are repaired or replaced, lowering their market value.
Car auctions in Dubai and other Emirates often sell rebuilt title cars. There are salvaged car auctions arranged by different companies across the Emirates.
Cons of a Rebuilt Car Title
Before you make any decision, let’s have a look at some cons of buying a car with a rebuilt title.
Increased Cost of Insurance
Rebuilt title cars are considered high-risk vehicles which increases their insurance cost. In comparison to a clean title car, the cost of a rebuilt title car is 20 to 50% higher. Although the car insurance cost may vary from vehicle to vehicle, it is still higher than others.
Limited Options for Financing
The higher risk of rebuilt cars also narrows down the financing options. That said, only a few financial institutions in the UAE finance rebuilt title cars making it difficult to purchase for many budget-conscious buyers.
Subtle Issues
The history of the rebuilt title car is unknown and can be challenging to identify subtle issues in the vehicle. Many car issues like intermittent electrical problems or transmission slippage are subtle and difficult to identify at first attempt. That said, fixing these car problems is also expensive, making rebuilt title cars a financial risk.
FAQs
Is a rebuilt title better than a salvaged one?
Salvaged title cars are the vehicles that have been totalled in an accident. After necessary repairs, they become rebuilt cars.
Can I import salvaged cars to the UAE?
No, the Emirates Authority for Standardization and Metrology (ESMA) has banned the import of all types of salvaged cars in the UAE.
Is car modification allowed in the UAE?
Certain car modifications are allowed in the UAE but are subject to regulations and permission by the authorities. Here is the complete list of illegal car modifications in the UAE that you must be aware of.
This was all about rebuilt title cars and their pros and cons. The rebuilt title cars are often appreciated for their lower price tag; however, the lower tag comes with its own sets of problems. From subtle issues to higher insurance costs, buying a rebuilt title car poses multiple risks. That said, when buying used cars for sale in the UAE, make sure it has a clean title and history.
If you are still confused about buying a second-hand car, here is the checklist for buying used cars that might help you.
Stay tuned to UAE’s top auto blog to know more about totalled cars.
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