5 Shocking Truths About Buying A Rebuilt Car
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We are firm believers in bringing new life into something old or broken. This mindset has saved us thousands of dollars over the past 10 years as we have shared our DIY projects with the world. It's only fitting that we believe a vehicle can also be fixed when it is put into the right hands. We are beyond thrilled to be teaming up with AutoSource to test out their rebuilt cars for 1 year and let you know what we think about their rebuilt / branded vehicles.
What is a Branded Title? Let's talk about 5 shocking truths when buying a rebuilt car.
The term “Branded Title” is a nationally accepted term (the term may differ from state to state) for a car title that has been taken ownership of by an insurance company. Insurance companies may take ownership for a variety of reasons, including: Collision, Theft, Hail, Water, etc. Most branded titles are due to collision and while that may sound disconcerting, one must keep the following in mind. A misconception is that for a car to be “totaled”, it must have been damaged beyond repair or more than 75% of the value of the car. This is not true.
Imagine if you just financed 100% of a brand new $35,000 car and within 6 months of ownership you are involved in an accident. When that happens the value of the vehicle will drop, even if repaired. If the newly repaired value of the car is lower than the loan amount of that recently financed car then you can imagine that the bank & insurance company are going to be uncomfortable. When that loan to value ratio gets upside down, often the insurance company, bank, and/or owner will insist on totaling the car, thus securing the loan with a replacement car whose value is more in line with the loan amount. The car that was then written off by the insurance company is sent to auction where AutoSource and its network seek out & hand pick the best opportunities to rebuild & restore these vehicles. With branded titles, these vehicles are now ready to be offered to the public again with their new, post-reconditioning value.
The new value is, on average, about 25% below market of a similar vehicle with a clean title. So, remember that $35,000 brand new car you bought 6 months ago & only drove for about 7,500 miles in the example above? Now it has been repaired (maybe all it needed was a new bumper, hood, passenger side fender & headlight) and is being sold at AutoSource for about $27,000. That’s a huge savings on a great vehicle with a lot of life left in it.
FUN FACTS About AutoSource
- AutoSource currently has 6, soon to be 7, dealerships located in 4 states (UT, CO, NV & ID).
- AutoSource is a Utah based company with their headquarters in Woods Cross & dealerships in Woods Cross and Lindon (the Lindon store is our local shop). They employ nearly 150 people.
Finally, here are 5 shocking truths about buying a rebuilt car that we wanted to share with you!
1. Can I get Insurance for a branded title / rebuilt car?
Yes! Auto Source works hand in hand with insurance professionals and goes the extra mile to get you the exact same coverage as a clean titled car. The video below explains more about the insurance coverage, so you can rest assure you will be covered.
2. Are rebuilt cars safe and dependable?
From finding amazing cars, ready for a new life, to putting the pieces back together, AutoSource does it right. They work with over 400 shops that specialize in specific vehicle types so they know every nut and bolt of a specific vehicle. Watch the video below to learn more about where they get the cars and how they are fixed.
Testimonials from buyers:
3. Do rebuilt cars still have their factory warranty?
When an insurance company takes ownership of a car (which is required in the branding process) any manufacturer’s warranty is voided. All cars are eligible for Vehicle Service Contracts that can be purchased at the point of sale.
4. Can I get financing for a branded title vehicle / rebuilt car?
Absolutely, & you don’t have to pay any unusual or special premiums to get financed. With Mountain America Credit Union the loan will be treated like any other loan & will depend more on the individuals credit-worthiness because they (MACU) feel confident lending their dollars securely with AutoSource cars. We could tell you all about this but we had the VP of Consumer Lending from MACU tell the story for us & from his perspective.
5. How much money can you save buying a branded tile / rebuilt car?
Customers save 25% on average with a branded title vehicle vs. a comparable clean title car. This means with the same budget, you can get a newer vehicle with lower mileage, and the latest safety features.
If you see us around, say hello!
We have been driving our cars for 1 month so far, and have fallen deeply in love with them. They are so luxurious, and we actually feel much safer in these cars since they have the latest safety features such as back up cameras, censors for blind spots, lane crossing detection, approaching objects, handsfree options for your phone, and so on. We love AutoSource and are so happy we get to work with them!
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