By B. L. Johnson

Copyright jalopnik

Shopping for a used car can be tough when your finances are tight. Scrolling the internet may eventually reveal a vehicle that seems nice and has a low price, perfect for someone with temporary cashflow issues. However, then you might see that your Craigslist or Facebook find has flood damage, resulting in a salvage or rebuilt title.

What do those titles mean, and which one is better if you’re shopping for a car? Well, we don’t recommend buying either, unless you want to buy it for parts. If you are considering a rebuilt or salvage car, though, rebuilt titles are better. Why? Because you can’t drive a car that has a salvage title.

That, in essence, is the difference between these two titles. Salvage titles are issued to vehicles that have been damaged so badly that it is not worth it for the insurance company to pay a repair shop to make it roadworthy again. It is not legal to drive a car with a salvage title, meaning you can’t insure or register a vehicle with a salvage title, either.

Cars with rebuilt titles, on the other hand, typically had salvage titles in the past, but have been repaired enough to be considered roadworthy by the state. Getting the state to issue a rebuilt title can take a lot of costly repairs, inspections, and documentation. Furthermore, insuring a car with a rebuilt title can be an ordeal. In fact, many insurance companies won’t even issue a policy for one.