Contenu
A particular states title-issuing agency may grant a "rebuilt" title to a vehicle previously declared a total loss. Aftermarket warranty companies consider the damage a pre-existing condition that invalidates a car for coverage. A "Rebuilt" or "Salvage" car designation may also void the factory warranty.
Salvage Title
When an insurance company assesses accident, fire or flood damage at more than a state-determined percentage of the vehicles value, the car "totals out." For example, the State of Michigan maintains a threshold of damage consisting of 75- to 90 percent of the vehicles pre-damage value. If the owner wishes to keep the vehicle, the Department of Motor Vehicles or other title-issuing agency grants a "Salvage" title.
Rebuilt Title
Once repairs or restoration take place, the car may earn a "Rebuilt" title after inspection. The "Rebuilt" car undergoes careful inspection by the title-issuing agency. Proof of ownership and purchase are necessary. Once its inspected, the car may operate on the road if its deemed road-worthy. However, the inspection does not re-activate a factory warranty or guarantee that the car approximates its original options or features.
Terms
Manufacturers, including Ford and General Motors specifically designate "rebuilt" cars as out-of-warranty. General Motors not only specifically excludes "rebuilt" cars under a blanket determination, but also prohibits covering them after extensive restoration. According to GM, "Alteration or modification to the vehicle including the body, chassis, or components after final assembly by GM," also voids the warranty.
