DSDP Don wrote:
A rebuilt vehicle with a CA salvage rebuilt title can be driven on the highways.
That pretty much applies to most states. Some states are easier than others, and some are cracking down on the process. I have a friend that made a good living buying totals at auction, reconstructing them and selling them. The state in which he was operating began to make it harder to get a rebuilt title by requiring a trip to the state's capital rather than the local DMV for the paperwork. NJ did this as well about 10 years ago - I would have to take half a day to go sit in Trenton to get a title. It's not worth it.
There are really good deals to be had if done right but I personally wouldn't buy a reconstructed vehicle unless I did the work myself or was familiar with who did the work. There's a reason the insurance company totaled them: they're too expensive or dangerous to repair. Someone will be looking to cut corners in the reconstruction in order to make a buck. My friend had an eye for finding "easy" repairs where an adjuster might have been a bit overzealous in his/her estimates and I wound up with some pretty good deals.
With regard to the original topic, I would believe water damage could result in a total loss. Water damage is taboo among insurance companies since it could lead to all sorts of trouble later on. I reconstructed one flood total myself. Just one. I'll never do it again. It's not terribly costly compared to a collision total but it's EXTREMELY tedious and requires complete dismantling of the vehicle for proper cleaning, disinfecting and replacement of electronics in order to be done correctly. I would not rely on a stranger to have done it correctly if their interest is in "flipping" it.
All that being said, and the reason I'm posting again is to emphasize that you will likely be "stuck" with this vehicle if you intend to move or sell it out of state. I have not had good luck in selling "R" title cars outside of NJ. Each state's rules for reconstruction are different. Selling from NJ to NY, for example, requires that the buyer go through the reconstruction process all over again in NY (paperwork, receipts, secret inspection, etc.).
