Secondhand Car - Facebook - confusion around clean title status - i.e. rebuilt?

Ask the Hackrs Used Cars
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After some awful interaction with dealers - not entirely their fault since there is low stock everywhere - but being given short 1 sentence email responses when I ask anything, saying they’re able to offer 1 or 2 cars at 10% above MSRP, is VERY frustrating. I am now resorting to other channels.

Specifically, I am looking into buying 2nd hand (2x total users) on Facebook marketplace. The model is a 2018 Kia Sportage asking for $15k. CarGurus is generally showing $20k+ for model with similar mileage. I’ve done a fair amount of reading on what to look for in secondhand sales - but am sure I missed out on something.

Specifically, I’m confused on the car’s title status. I have both CarFax (“CF”) and AutoCheck (“AC”) reports on hand (owner provided CF, I paid for AC). Both reports classify the vehicle title as clean with no title issues but also states that the vehicle was reported as a TOTAL LOSS in 2020. How does this vehicle not have a SALVAGE title? Does this mean the car has a REBUILT title? Would an individual or insurance company be able to do this? Is this still considered a “clean title” vehicle?

To give a sense of timeline from both the CF and AC reports:
On both CF and AC, there is an accident reported in 2020. Reported as “minor” damage according to CF and “mild to moderate” on AC and “disabling” damage according to AC police report.

  1. +3 weeks post the accident, both CF and AC notes “Title issued or updated; new owner reported”. However, only AC report notes “Lien Reported”, while CF doesn’t make any note to a lien (the owner says there is no lien currently)
  2. +1 month from above, CF report states “TOTAL LOSS VEHICLE; title or registration issued to insurance company” while AC just notes “vehicle titled / registered to an insurance company”. So it looks like the insurance company took it over but was still able to retain clean title??
    • 5 months from above, the car was sold to and registered in another state to the current owner, who I’m speaking to now.

The owner is stating that the car posesses a clean title and in fairness to him, he doesn’t seem to know the full background of the previous owner/accident. I’m concerned the car has an artificially rebuilt clean title - how is it possible for a total loss vehicle to have a clean title? Would the kind smart folks here be able opine and determine what’s going on? Thank you!!!

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Some states have ways of washing a title… either way, is this not enough red flags to steer clear?

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I have read that since there are parts shortages some cars that were wrecked were declared “total loss” by insurance company simply because the parts weren’t available to repair the vehicle and the insurance did not want to continue paying the owner’s rental fees. Did the owner disclose that it was in an accident? Does the owner have the title? I also think “salvage” and “rebuilt” can be interchangeable terms depending on what state you’re in.

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My guess: they owned/financed this car, totaled it, the insurance paid out a total loss claim and they fixed it. The title won’t be branded until you buy it. The insurance should have bought it and sold it back, but maybe not. Also possible it wasn’t completely totaled and they fixed it, but CF/AC calculated that based on repair?

In any event, it’s wrecked. I’d move on to something else.

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It’s possible as @jeisensc said that the car was wrecked, and the owner retained salvage. Basically, the owner took the insurance settlement and repaired the car. That would scare me since some people that do that have the car repaired cheaply and not up to factory recommended standards.

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Run, don’t walk from this deal. It’s got bad situation written all over it.

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All I need to know to move on.

Just buy a brand new 2022 Sportage if 2018s are going for $20K+

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Thanks for the ideas posed. Even if the owner knew (which I think he doesn’t), I don’t think I would get a truthful or accurate answer.

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Sounds like thr right move. Thank you

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Wow thanks for such a fast feedback everyone!! I think the feedback and next steps is pretty damn clear. I will move on!

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With way used car prices are looking its almost better to get new. This car is for my fiance who’s on a student budget and only needs it for a short daily commute. We’ll use my car for any long trips / in weekends. Not trying to cheap out but definitely still trying to save!

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TBH I’d rather get a brand new Rio/Forte/Soul at a lower OTD price and lower APR than a used car.

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