If you have a salvaged vehicle, your title reflects it and is called a salvage title. It’s illegal to change a salvage or even rebuilt title into a clean title, but that doesn’t mean there aren’t people who don’t try. A clean title means the car has never been considered a total loss by an insurance company. Once it’s involved in an accident and considered a total loss, the car cannot have a clean title, as the insurance company and the state consider it a salvage vehicle.

However, turning a salvage title into a rebuilt title is possible with the right steps.

Important Information You Need to Know:

  • A clean title doesn’t mean a car was never in an accident or had damage
  • Salvage vehicles cannot be legally driven in any state
  • A rebuilt title doesn’t guarantee the car is in good condition
  • Many scammers turn salvage titles clean, but it’s illegal
  • A rebuilt title can greatly lower a vehicle’s value
  • Once a title is no longer clean, it cannot regain that status

Clean vs Salvage vs Rebuilt Titles

Understanding the difference between clean vs rebuilt vs salvage titles is important when owning or purchasing a car, especially to avoid falling victim to a scam.

What is a Clean Title?

A clean car title means the car has never been considered a total loss. It doesn’t mean it was never involved in an accident or has no mechanical issues. The title status can be deceiving, making you think the car is in great condition, but the title has nothing to do with the vehicle’s past or condition. Once an insurance company considers a car totaled, it cannot have a clean title in its lifetime.

What is a Salvage Title?

A salvage title means the insurance company considered the car a total loss after a major accident or incident. The car’s necessary repairs cost more than its actual value, and the insurance company won’t cover them. Therefore, anyone who wants to sell the car to be repaired or for its parts requires a salvage title.

What is a Rebuilt Title?

A rebuilt title means a car that was previously determined to be a total loss was repaired and can now be driven rather than destroyed.

Cars with salvage titles are often sold at auctions at a much lower price, usually 20%—50% less than their value. People purchase cars from the auction, repair them, and ensure they meet the local Department of Motor Vehicles’ safety and inspection standards to drive them again with a rebuilt title.

Is Turning a Rebuilt Title Clean Legal?

It is illegal to turn a rebuilt title clean. Once a car has a salvage title, it cannot have a clean title. However, the owner may obtain a rebuilt title if the car passes the standards. This title tells any future owners the car was once salvaged but has been rebuilt.

Steps to Obtain a Rebuilt Title

Applying for a rebuilt title involves a lengthy process. Once a car has a salvage title, it’s deemed unfit for the roads and must pass a rigorous inspection to obtain a rebuilt title.

  1. Purchase a vehicle with a salvage title:
    Buying a car with a salvage title isn’t legal in all states. Check your state laws to see if you can purchase a salvaged car or if only licensed brokers can purchase them. If allowed, you purchase the car in your name with the intent to repair it.
  2. Start the repair process:
    Since the vehicle has a salvage title, driving it on the roads is not legal. You can use the car for its parts or undergo the repair process. This usually requires the assistance of a certified mechanic since the car must pass a rigorous inspection.
  3. Pass the inspection:
    If your state’s Department of Motor Vehicles requires the vehicle to pass an inspection to get a rebuilt title, you must have an inspector examine it. At the inspection, you must provide the bill of sale, original salvage title, and documentation of the repairs performed. If the inspector in your state won’t come to you, you must have the vehicle towed to their location; it is illegal to drive it. The inspector will determine if the car can be driven safely.
  4. Apply for a rebuilt title:
    You must contact your state’s DMV and follow their procedure to apply for a rebuilt title. Without this title, you cannot legally drive the vehicle.

Title History Verification: How to Check a Vehicle’s Title History

Taking a seller’s word for the car’s history is risky. Instead, consider conducting your own title history verification. All you need is the Vehicle Identification Number and one of the following methods:

You can also use sites like CarFax or AutoCheck for quick, free reports, but they aren’t as thorough as the other options.


What are the Downsides of a Rebuilt Title?

While you may save money buying a rebuilt vehicle, there are some downsides to consider:

  • Most rebuilt cars have a much lower value and don’t hold much resale value
  • Finding traditional auto loans to purchase the car may be more challenging
  • Rebuilt vehicles typically no longer have a valid manufacturer’s warranty
  • There’s no guarantee the repairs will last and that the car won’t have issues

Are Rebuilt Titles Hard to Insure?

It can be much more challenging to insure a car with a rebuilt title than a clean title. Many insurance companies immediately decline cars with rebuilt titles. If you find an insurance company that approves your application, they may only offer liability insurance and at a much higher premium.

What is Title Washing?

There are many ways criminals can scam innocent car buyers with salvaged vehicles, and one such way is called title washing. This scam involves removing pertinent information about a vehicle’s history to obtain a clean title, even though it’s not clean. It results in an illegal title.

Common Title Washing Scams Include:

  • Eliminating information about existing liens
  • Retitling a vehicle in another state that doesn’t know the car’s history
  • Eliminating evidence that the vehicle was stolen

Not only is title washing illegal, but it puts buyers at risk. You could purchase a car that you think is safe but has major safety issues or is worth much less than you paid.

What Questions Should You Ask Before Buying a Car With a Rebuilt Title?

  • Why was the car totaled? What damages did it incur?
  • Who rebuilt the car, and what credentials do they have?
  • How old was the car when the insurance company claimed it totaled?

Final Thoughts

It’s legal to convert a salvage title to a rebuilt title with the right help and the approval of your state’s DMV. However, it is illegal in every state to make a rebuilt title clean. A title only has clean status if it’s never been considered totaled by an insurance company.

Potential buyers must beware of the many title washing scams that exist today to avoid being taken advantage of when buying a car. If you purchase a car with a salvage title, it can be more challenging to borrow against it in an emergency, but we may be able to help. Our online application takes only a few minutes to complete, and you’ll receive a free, no-obligation quote the same business day.

Written by Samantha Hawrylack

Written by

Samantha Hawrylack

Samantha Hawrylack writes for our company and is an expert in personal finance. Sam received her Bachelors of Science in Finance and her Masters in Business Administration from West Chester University of Pennsylvania. She began her career in the financial services industry and shifted to an entrepreneurial role where she could directly impact clients. Sam has an impressive background in personal finance and business management.