Originally posted by: NutBucket
First you don't know the severity of the damage or the quality of the repair. Secondly, it won't be worth anything when you want to sell it.
While this is true, flip side is, the cost of buying it is almost always below/well below book/market value for it.
I see a lot of 2-3 year old cars on craigslist with rebuilt titles. All in good cosmetic condition, for $3-5k less than a clear title vehicle of the same make/model/year.
But, as someone said, definitely get as much info as you can. Receipts, records, etc etc. And yes, the character of the seller is a big indicator. Also be sure to check with your insurance company to see if they will even insure the vehicle.
An good example of when you can end up on top is this. When I worked at an auto insurance co, I saw several cars come thru where they were stolen, and the seats and wheels were stripped. After 30 days or so, it was marked a total loss. Later to be recovered, in perfect mechanical condition. New seats, new wheels, perfect car, but rebuilt title due to the insurance determination of a total loss.
So, if you're willing to take the time, you can get a good car for cheap(er). But if you don't/aren't willing to do so, don't bother and keep looking.