In lemon law cases, the vehicle’s title is a crucial piece of documentation.
But not all car titles are equal.
Lemon law exists to help consumers who purchased a vehicle with manufacturer defects seek fair compensation from the auto brand. These cases are based on warranty terms and each state’s specific lemon laws.
The status of the vehicle’s title may impact the consumer’s ability to file a lemon claim. As a California lemon law attorney, I occasionally deal with vehicles that have a “reconstructed” title. These consumers commonly ask how this title status factors into the case.
In this post, I want to shed some light on what it means to have a vehicle with a reconstructed title – and how it factors into lemon law.
Let’s dive in.
What Exactly is a Reconstructed Title?
A reconstructed title is issued for a vehicle that has been damaged and then repaired to a state that’s considered safe for driving.
Typically, these vehicles have suffered damage from accidents, floods, or other events that led to an insurance company deeming them as total losses. Once repaired, a vehicle inspection is necessary to ensure its roadworthiness before the reconstructed title is issued.
Rebuilt vs. Reconstructed Title: What’s the Difference?
The terms “rebuilt title” and “reconstructed title” may sounds similar, but there are a few cardinal differences.
Both of these terms refer to the status of a vehicle after undergoing significant alterations.
A “rebuilt title” typically means the vehicle was restored after suffering significant damage. The vehicle was considered a total loss by an insurance company – meaning the repair costs outweighed the vehicle’s value. However, the car was repaired and has been deemed safe and roadworthy.
A “reconstructed title” commonly refers to vehicles modified from their original structure or function – this can be a result of damage or customization, changing its original design or purpose.
Reconstructed Title vs. Regular Title
A regular vehicle title signifies there are no significant past damages or alterations that would affect its safety, usability, or value. Basically, it’s a stamp of approval that the vehicle has passed a QA check and is fit for its intended purpose.
In contrast, a reconstructed title alerts potential buyers of the vehicle’s history of substantial damage, alterations, and subsequent repairs. This distinction is crucial for both buyers and sellers to maintain transparency throughout the transaction process regarding the vehicle’s condition.
How Does a Reconstructed Title Affect Lemon Law Claims?
California lemon law protects both new and used vehicles sold with a warranty – either a manufacturer warranty or a dealership warranty.
A car with a reconstructed title tends to complicate lemon law claims due to the vehicle’s history of significant damage. In some cases, this exempts the vehicle from the typical warranty protections.
This is because significant alterations or repairs have been performed to issue a reconstructed title status. This means there will be questions about the original defects’ nature and whether they are covered under the manufacturer’s warranty.
Additionally, manufacturers may argue that the vehicle’s reconstructed status contributed to the owner’s issues, rather than a defect in workmanship or materials – further complicating the claim process.
Managing lemon law claims with regular titles is complicated enough; vehicles with a reconstructed title demand a thorough understanding of the state’s law and negotiation tactics. These types of claims are extremely difficult without a skilled CA lemon law lawyer on your side.
Reasons to Buy a Car with a Reconstructed Title
There are several reasons to buy a car with a reconstructed title. The most common ones include:
Cost Savings
Vehicles with reconstructed titles typically come at a lower price point than those with clean titles, allowing buyers to purchase a car at a significant discount.
Possibility of an Upgrade
The cost savings of a vehicle with a reconstructed title can provide an opportunity to own a higher-end model or a vehicle with more features than one might afford otherwise with a clean title.
Transparency in Repairs
A reconstructed title indicates that the vehicle has undergone substantial repairs, generally meaning that major issues have been addressed.
Environmental Benefits
By opting for a car with a reconstructed title, buyers contribute to recycling and reducing waste, giving a damaged vehicle a second life – instead of it ending up as scrap.
Inspection Assurance
To get a reconstructed title, vehicles must pass a thorough inspection – which provides a level of assurance that the car meets specific safety standards.
Reasons to NOT Buy a Car with a Reconstructed Title
Buying a vehicle with a reconstructed title certainly has benefits, but there are some key drawbacks to consider:
Insurance Challenges
Getting comprehensive insurance coverage can be more difficult and expensive for vehicles with reconstructed titles due to their history of significant damage or alterations.
Safety Concerns
Despite passing inspections, there may still be underlying issues or compromised structural integrity not immediately apparent, potentially posing safety risks.
Resale Value
Cars with reconstructed titles generally have a lower resale value, making them a less attractive investment compared to vehicles with clean titles.
Financing Hurdles
Many financial institutions are hesitant to offer loans for the purchase of vehicles with reconstructed titles, limiting your financing options.
Unknown History
Even with a thorough inspection, the full extent of past damage or the quality of repairs may not be fully disclosed, leaving buyers uncertain about the vehicle’s true condition.
The Wrap
Understanding the significance of a reconstructed title – and its implications on lemon law claims – is essential for both buyers and sellers. These vehicles may offer economic benefits, but they carry inherent risks and complexities, especially regarding warranty and legal protections under state lemon laws.
If you’re worried your vehicle with a reconstructed title is exhibiting defects, it’s worth speaking to a lemon law attorney to understand your options. Most lemon attorneys understand you’re in this situation for the first time, and will be happy to provide information. This guidance ensures informed decisions and navigates the legal landscape effectively.