The path to my Chevrolet Silverado ownership was not planned, and it certainly wasn’t a great financial decision, though my 2015 model has been a good addition to our household fleet and does its job quite well. It’s a basic Chevy work truck with rubber flooring and the only reason I own that truck is because I thought it would be a fun idea to buy a daily driver with a rebuilt title.
I toyed with the idea of buying a vehicle with a rebuilt title many times over the years because I understood that insurance companies will often total a vehicle that is actually quite alright aside from tedious and laborious repairs. What I didn’t foresee; however, was the total headache I’d have trying to get rid of a vehicle with a rebuilt title.
Rewind to the COVID-19 pandemic: Our household needed a different daily driver as a family vehicle. We went through all the usual motions and I did all of my research like I do as a car nerd. Because the market was off the rails with high prices, I looked into rebuilt vehicles since they were substantially cheaper.
[Ed note:Â ADA is a reader and sometimes contributor who has a lot of experience in the insurance industry, which he sometimes shares with us. This story is a bit more personal. –Â MH]
We had owned a 2006 Honda CR-V five-speed and it fit our two kids/two large dogs life very well so I decided to look for something similar. Unfortunately, very little SUV or wagon-shaped is available with a manual anymore, or at least not in our budget of under $20k. Even the automatics available were saddled with either high mileage or high price.
How I Ended Up With A Rebuilt Toyota
After several weeks of looking, I came across a mechanic nearby who rebuilt vehicles and sold them from his body shop. He had a 2017 Toyota RAV4 that had very low mileage and was within our budget with a $14,000 asking price.
The exact same spec vehicle at the local Toyota dealership had an asking price of $25,000 with similar mileage. We spent a long time talking to the mechanic and we learned that the reason the car was deemed a total loss was due to mouse damage. They had gotten into the headliner through the dash and damaged the heater core, headliner, trim, and some other small things, so the insurance totaled it out.
The mechanic showed us photos of the work he did to replace all of the damage, so we looked the car over. It all checked out and every system of the car worked fine, including all the ADAS features and sensors. It had none of the electrical gremlins I had worried about, so we bought the car.
We drove the RAV for a year or so before really deciding that we just didn’t enjoy it. Like an awkward breakup, we felt: “It’s not you, it’s me.” The RAV4 is a fine transportation appliance for most focus groups and it has worked for millions of people, but, for us, it elicited no joy and the car just didn’t have a personality, even with modifications we did to try and give it one. We took off the badges and put RAVIOLI on the back, and that made it slightly better, but it just didn’t have the fizz as James May would have said.
It was all hard plastic and had basic, barely comfortable seating inside. However, the worst sin in our mind was the way it drove. Toyota engineers clearly designed the RAV4 for interstates and city driving and not for the Maine roads where we live. These roads contain rolling hills and curves that usually have a 35-50mph speed limit. This RAV4’s transmission was a six-speed automatic that seemed aggressively tuned to its top gear as fast as possible. It would hunt and peck for the right gear all day on our commutes. Often it would drop one, then two gears for about eight seconds, then go back up to its low RPM top gear, only to do it all over again on the next crest. We hated it and it had to go.
This is where the headaches began. If you’ve never had to try and sell a car with a rebuilt title, you are lucky. The endless amounts of questions on Facebook Marketplace, Craigslist, and in person were enough to make me swear off ever doing it again. Explaining that it wasn’t flooded, wasn’t in an accident, and wasn’t broken in any way was just the beginning of the headache.
Then I had to explain that no, financing was not possible since banks do not lend auto loans for rebuilt vehicles. I’m sure it wouldn’t have been an issue if the car was cheap, like under $5k, but it wasn’t. The book value was high for any RAV4 at that point, and even discounting the same savings we got when purchased didn’t help since it just made people rabid to get first dibs on a Toyota for less than $13,000.
I had about 45 messages in the first 24 hours of listing it. I had people from four states away reaching out. I had to explain everything that was CLEARLY written in the listing because, of course, people just don’t read or comprehend what rebuilt titles mean. After several months of listing hell, I added “trade for a truck” to the bottom. It was a desperate moonshot that we could trade our way out of the impossible proposition of finding a very specific buyer for the rebuilt RAV4.
The Venn diagram of practical daily driver, a pile of cash, and a buyer who is OK with branded title vehicles has very little overlap. Sure, there were people who had cash and needed a daily. Yes, there were people who had cash and were ok with branded titles, but they were probably shopping for rebuilt sports cars or potential rally vehicles. These two types of buyers’ needs were vastly different from one another, so our market was basically zero, zilch, nada. We had numerous attempts at purchase where people got cold feet and backed out even after having the car looked over by a mechanic with no issues found. It was a huge time suck and hassle.
It All Worked Out In The End, Though
Finally, after we were thinking we would be living with the boring appliance for the next two decades, I got a ping in my inbox: “Have truck.” Photos were exchanged, and I repeatedly reminded the buyer that it was a rebuilt title as was usual by now for my typed exchanges. I looked at the photos of the truck, ran the value, and frantically did as much research on a 2015 Silverado as I could before I lost the chance to make a deal happen. It had 200,000 miles. Our RAV4 had 46,000.
The buyer offered $3000 on top of the trade and we agreed to meet where they lived in Worcester, MA. So I detailed and cleaned out the RAV4, packed the title, and nervously drove 1.5 hours to a neighborhood I’d never been to in MA. I parked at the address and minutes later a gentleman showed up in the white work truck. He had very obviously just left work from some kind of automotive shop since he was covered in grease and eager to get back to work. The truck had a few cosmetic issues that were not in the photos he shared. There was a quick mention of: “Here is the truck” and “Transmission rebuilt, no receipt, shop down there (pointing down the street).”
I took the truck for a test drive on side streets with the owner; the 4WD worked and it was not rusty in all of the worrisome areas. Good enough for me, since it would be our only shot at unloading that RAV4. We then drove the RAV. I was really hoping he liked it. He didn’t say anything except “Oh shit, cop” when we saw the local constabulary.
I felt nervous and excited to be counting a wad of cash in a random parking lot, signing titles and swapping license plates from one vehicle to another. It was like a Breaking Bad episode with cars instead of drugs. But finally, it was done. No more rebuilt title vehicle! I was the proud owner of my first-ever American pickup, first GM product, and first V8. A huge weight was lifted and I could now relax and get to know a new-to-me vehicle.
In the end, it worked out OK, but I would not recommend buying a rebuilt vehicle as a daily driver, and certainly not one that was more than four figures. The headaches when trying to sell it were not worth my time and frustration. If we’d enjoyed the RAV4, we would have no story to tell, and no adventures in car sales hell. It would have just been a tale of us being wise and getting a working car for much less than inflated pandemic prices.
Instead, learn from my example. There are plenty of situations where a rebuilt title makes sense, but this wasn’t one of them.
All photos Author
“I’m sure it wouldn’t have been an issue if the car was cheap, like under $5k, but it wasn’t.”
This is one of the two circumstances under which one should buy a salvage/rebuilt vehicle. 14 grand can account for a lot of damage. 5,000 cannot. If the vehicle was first salvaged at a time when it was cheap, AND it appears to be in good condition with no obvious BS, you can be pretty sure that the damage was minor.
If the car was salvaged when it was closer to new, and you don’t have receipts for everything, you’ll never know for sure.
The other circumstance is yours, where you can verify what the damage was, that it wasn’t deal-breaking, and how it was repaired (buying from the person who salvaged it, you can do this. Buying from subsequent owners you probably cannot), but then you drive it into the fucking ground. You don’t even try to sell it.
Cars today get totalled even with minor damage because expensive parts are placed in vulnerable locations. It’s almost as if they intended it that way?
Recently had the pleasure of shopping for salvage Ford Escape parts. On eBay, you can usually see the picture of the crashed car the parts were taken from. Ton of them have light damage to the front driver side corner. Later during the job I found the engine controller tucked between the front tire and bumper and understood why.
This is one problem with the car YouTubers of the world. For example I like the legit street cars channel. But this guy has 15-20 years of experience as a mechanic and a fully decked out shop. He has the ability/tools/space to take on just about any issue that can come up during the series with the car or any time after. He encourages people to DIY and I think that is a generally good idea to encourage.
(Here comes the really big…)
But, this may be encouraging/enabling/causing unsafe vehicles to get back on the road again.(At least in the states). Many states are pretty lax about safety checks and only care that the obd2 port says it runs clean. Flood cars are great at failing later on in their life. Other cheap fixes may or may not work long term either. That said it is great entertainment watching a car get brought back to life based on entertainment value.
At least you knew it had that type of title. I bought a used car made by a well known European company. Took it to a dealer of said company that I picked for a PPI. They said it was a great car. But there was/is a certain group of people who all are from another area of Europe. And they are well known (now to me) as being involved in organized crime. One of the things the do is “wash” titles. Using different states DMV’s and perhaps paying employees they were able to sell me a car that appeared to have a legit title. Once registration was complete I then received a title that stated it was salvaged or similar. It all worked out for me, the manufacturer paid me more for the vehicle than I paid because of the dealers complicity and other factors. And that company with maybe the Fox mascot? They also paid me. I had to inform them they were breaking FTC and other federal laws through their misrepresentation and failure to comply with the contract we had entered. It was a bit or work, including testifying in front of a certain state senate about used car sales and how it can go wrong. Due to NDA’s I had to sign to get the $ I have been very, very, vague.
God damned Gypsies!
Not sure I want to respond to your user name. I’ve been criticized for mine. Lardo is an Italian delite, it’s an old tradition, pork fat cured in Carrera marble tubs. Melts like butter. But now the Bin Laden family owns most or all of the Carrera marble quarries so I am conflicted. Anyways, in case you don’t know, the G word is now and has been a slur for a while. As I was told/gate kept if you want to hang around here you should watch what you say because… oh wait I think you should state whatever you want and who am I to say otherwise. I’m not some guy with 3 names, that’s for sure! Anyway, it was the guys who don’t get along with poultry, say a chicken. or a Turkey.
If only I were gifted with your level of discretion! I will sit in the corner, fetch the cone of shame!
Just don’t felch.
I mean you are one step away.
I’ve had a couple salvage title cars. In each case I paid about half the going rate when I bought them, kept them for about four years, and sold on with no trouble at 3/4 the going rate for similar car/mileage.
You should have sucked it up and just kept the thing, boring or not (and there are fewer things more boring than a recent RAV4). A 200K GM truck of that vintage? GOOOOOD LUUUUUCK – you are likely to need it. My brother and sister-in-law had one of those each, rolling disasters as they aged.
That’s not a nice thing to say about your brother and his wife 🙂
The only rebuilt title car I’ve owned was a $900 Subaru. I cannot imagine owning anything of actual value that was rebuilt, unless we are talking for track or farm use.
A dealer in my old home town specialized in sporty, higher end, salvage title cars. The sales manager said their $100k+ cars were often sold to folks in middle eastern countries. I was told they had financing available. I ultimately bought an S2000 from a private party instead.
I always find it telling when there’s glaring issues (like your mentioned cosmetic issues) that purposely aren’t disclosed in the photos. Either the person purposely didn’t mention it, or didn’t care to think it was important; both people I don’t want to buy a car from, especially a 200,000 mile GM product lolll. Best of luck.
Clean title or not, $3000 or not, I would not be excited to swap a 46,000 mile Rav4 for a 200,000 mile work truck that’s two years older.
I sympathize with owning something you don’t like and it being hard to sell, but I think you sold low.
And I like trucks!
I have to +1 this – the RAV4’s new owner got to hit the reset button for $3000 because the author just wasn’t feeling the automotive appliance? When it comes to family hauling I’d much rather be bored than stranded somewhere.
+2 I don’t like the value on the exchange and I consider a vehicle a tool so putting a Ravioli badge on it seems too emotional to me. I remember emotional buyers when I was a car salesman, they were very profitable.
Rule is never buy rebuilt unless you plan to drive it until the wheels fall off.
Subject matter expert in vehicle valuations certainly provided an interesting personal experience in vehicle ownership. Reminds me of cars mechanics own.
My credit union does loans on rebuilt title autos. Not a problem if you have excellent credit.
I’ve sold a rebuilt title vehicle, referring them to my credit union for the financing. Again, not a problem.
You do have to have excellent credit, because for them, it’s one part auto financing, one part unsecured personal loan.
If you’d done a little research for your prospective buyers and pointed them toward compatible financing, you probably would’ve had no problem at all selling your RAV4.
As someone whos owned and sold cars with salvage titles, it is sooooo much easier to sell sports cars with salvage titles. Always someone out there looking for a cheap hoon or a track car they wont miss if the unexpected happens; a lot of cheap posers too.
But a five figure boring SUV will be hard. Especially one as common as a RAV4. Now a salvage title LM004 or a salvage title FF91 will go quick especially if priced to sell.
I’ve always been curious about this. Here in Texas there’s a number of dealerships that have loads of banded title cars, they always look great, always have low mileage and always have a great price. Sounds like it’s a good thing I never really pulled the trigger on one of them
I’ve been wondering this too. Trying to help a friend find a car in the sub-$4k range, and I’m seeing the same thing.
Branded. Like a steer. I am not sure if any other state uses this term.
Leftover “Harvey Cars”?
You rang?
I’m curious, what was it like getting insurance for the mousey rav4? I’ve never had a salvage but heard that’s a pain in the ass
May depend on the state, in my state all you could get is liability and uninsured on a title like that.
I’ve had a couple, zero issues with insurance. Obviously, if you wreck it again you are going to get less for it. But as with all things in these somewhat but not entirely “United States” YMMV wildly depending on where you live.
The only issue I had directly related to the branded title was that one of them was a V6t Saab 9-5 wagon. Normally, Saab would replace the timing belt for free at 60K on those cars. But because the car had a branded title the considered the warranty void and refused to do it. Which turned out to be a good thing, as Saab would ONLY cover the belt, you had to pay for the idler pulleys and whatnot yourself if you wanted those changed too (and they were known to not make it to the next belt service). It was cheaper to have my indie shop do the whole thing than to pay the wankers at the dealership to do it with the “free” belt and “free belt labor”.
Never in my life have I heard of replacing a timing belt without idlers & tensioners (and water pump, if applicable), or timing chain without guides.
Especially from a dealer, not Bubba who works for cash in the back alley.
I will speculate is was after GM bought SAAB? Don’t know if the V6t was available prior to the purchase.
GM had long bought Saab by then. It was a GM engine after all.
That’s what I thought but didn’t bother to confirm. Not a surprise they did the least amount of work on warranty.
IIRC, GM bought half of Saab in 1989, and the other half in 2000. This would have been 2006ish, I bought that car in 2004 with 40K on it. Lovely car, probably should have kept it longer than I did. Probably my second favorite Saab of the seven I have owned. The V6t was the best of the three engines offered in the US in the 9-5, IMHO. The fours were far too rough for a luxury car.
That was the deal. Free belt, and that was all. GM paying at warranty rates, of course, so any excuse to not do it. It was kind of a miracle that they would do it for free to start with, the cars only had a 4yr/48K warranty to start with, but after a few “premature” belt failures they instituted this extended warranty free belt change. Though IIRC, the official change interval was 60K/5yrs whichever came first. Officially, of course, there was NO service interval on the idlers. The water pump is not driven by the timing belt on that engine.
The trick with that engine, should you find yourself with one of the 3-4 still on the road at this point, is to use Saturn V6 parts. Same parts, about 1/3rd the price that the Saab $tealer wanted for them.
I’ve owned rebuilt title vehicles in multiple states and never had an issue getting insurance. I’ve only ever had liability on said rebuilt vehicles, so I have no idea how hard it may be for comprehensive coverage, but liability was never a challenge to get.
I had no trouble getting comp cover. It’s a GREAT deal for the insurance company – they don’t charge you any less, but if you wreck a salvage title car they are going to give you jack shit for it (of course, in theory you paid a lot less for it, so fair). My two were a Saab 9-5 and a BMW 318is, so they were worth enough to make it smart to have it, and initially I had a loan on the Saab anyway so no option to not have it.
The BMW was an especially great deal in that it was a theft recovery, the thieves stole all the “is” parts. So it had new seats, new wheels and tires, and new front and rear spoilers. The Saab was a car that a bodyshop fixed as a make-work project between customer cars when things were a little slow. Full documentation, and they did a nice job of it. Hit in the “B” pillar. Was only 4yrs old with 40K when I bought it for $10K. Going rate for one like that was $20K++.