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I don't see anything wrong with buying a car with a rebuilders title, but I would probably want to see pictures of it before it was fixed to see exactly how bad the damage was.
My Dad bought our Trans Am with a salvage title, and it wasn't wrecked that bad either...just cosmetic damage:

Before-


After-


Most of the time too with cars that have a rebuilt title you can buy them cheap ;)
 
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