A "Salvage" title is what the vehicle receives from the insurance company after a particular "total loss" event. That event can be fire, flood, collision, etc. Some states also break it down further flood-salt water, flood-fresh water. And to confuse oner further, there is also a category for recovered theft/prior theft.
Once the insurance company takes the vehicle and has paid off the owner for their loss, the vehicle gets a "salvage" title. The insurance company submits the "salvage" vehicle to an auction where the vehicle is then sold. A portion of those vehicles are bought at auction and then "rebuilt." When the vehicle has been "rebuilt" it is re-inspected by the DMV and then issued a "rebuilt title" which lists the particular loss the vehicle initially suffered (fire, flood, collision) on the title.
The vehicles re-enter the stream of commerce and are sold to buyers again. All states have regulations regarding disclosure to the consumers about this....and so dealers prefer to ship those vehicles out of the country. The DR allows "rebuilt" to enter the market.....so you may find an inordinate number of them there.
One note about the re-inspection process above, It is NOT a safety inspection. It was added to detect the use of stolen parts only. But people unwittingly believe, or are told, that the vehicle "passed" an inspection....and so many further believe that the vehicle must now be safe or road worthy.....when, in many cases, nothing could be further from the truth.....
To confuse people further there is also good "salvage." By way of examples, there was a hailstorm in Minnesota and 35 brand new Lexus' were declared a total loss and sold as "salvage." Nothing wrong with those vehicles except the flat body panels had puck marks on them (hood, trunk, roof) A little bodywork and someone got a nice deal. Or the 400 or so vehicles that were being stored in the desert in California...when along came the santa anna winds and literally sandblasted one side of the vehicles. Those vehicles were sold as "salvage," rebuilt and returned to the stream of commerce with a "rebuilt" title, prior salvage.
There is good salvage.....but as an end consumer you have little way to determine the difference.....so...
Caveat Emptor.
Respectfully,
Playacaribe2