A salvage title is issued when a vehicle is declared a total loss and has not been repaired for road use. A rebuilt title is issued after a salvage vehicle is repaired and passes a state inspection. Both are permanent title brands. Salvage vehicles cannot be driven; rebuilt vehicles can be registered.
Both designations significantly affect financing eligibility, insurance options, and resale value. Dealers working with either type must understand state-specific disclosure requirements, conduct thorough inspections, and price acquisitions to reflect the elevated risk compared to clean-title inventory.