A branded title signifies whether a vehicle has sustained damage related to an accident, theft, fire, or flooding throughout the course of its use. Title brands depend on the car’s condition and the state where it is being imposed. Only a state official can assign a branded title to a vehicle and register it in its documents. For state-specific information, check the Division of Motor Vehicles in your area.
Purchasing a used car is often economical, but it comes along with risks. Always check all the documentation to be sure about the history of the vehicle for safety reasons. Title brands indicate if the vehicle could be potentially dangerous to drive, so if you plan to obtain a used vehicle, it is crucial that you understand their meaning. Read ahead for a comprehensive scope on what to expect from branded title cars!
Table of Contents
- Types of Branded Car Titles
- How Much Does a Branded Title Affect Vehicle Value?
- Should I Buy a Branded Title Car?
- How to Find Good-quality Branded Title Car: Quick Instruction
- Summary
- FAQ
Types of Branded Car Titles
Used cars may have attractive low prices. However, before making a purchase, ensure you know its characteristics, owner history, and possible accidents. Analyze the future costs of the vehicle’s maintenance. After all, the most economical car is the one with zero damage. Keep reading to find out all you need to know about branded car title variations.
Salvage Title
This type of certificate determines that the cost of car repair is 50% or more of the selling price and applies to cars that have been through a severe accident. At American auctions, 75-85% of all vehicles are cars with a salvage title. You can choose to drive such cars in the United States (subject to Rebuilt title) or export them to other countries. In some states, the threshold for the cost of repairs may be 75%.
In general, it means that the car was in an accident, and then the insurance company estimated the damage to be more than 50% of its cost and decided that it is not worth repairing it. The company reimburses the car’s market value to the owner with the deduction of applicable fees, and the vehicle goes to an auction.
Lemon Title
Lemon title vehicles have severe reoccurring malfunctions, which force the manufacturers to redeem them. Typically, such issues make the car unsafe or even inoperable even after several attempts to fix it for a long period of time (from 30 days or more).
Lemon law obliges manufacturers to buy back defective vehicles or replace them with new ones. However, each state has different requirements for a car to obtain this status. Some US areas do not have a lemon law present at all. Other areas apply it even if the car has already been resold by its first owner to a new buyer and even in the case of multiple resales.
Rebuilt or Reconstructed Title
A rebuilt title is when a car has been restored from a salvage title and is usable. It is possible to export such a vehicle. However, remember to check its history carefully. It is also advisable to order an inspection.
Not all sellers invest in high-quality repairs, which may, in the future, entail additional costs or even the need to redo the reconstruction completely. For instance, that can be due to low-quality car parts. If left unnoticed, such reconstructed cars may result in bigger investments in the best case or accidents in the worst. Thus, rebuilt title vehicles should be treated with extreme caution.
Odometer Rollback Title
A vehicle would receive this title if one of the previous owners rolled back the car’s road use identifier, the odometer. Detecting odometer rollback is extremely difficult if you do not have a degree in mechanics.
Some signs of a possible odometer rollback are:
- Excessive wear of the gas and brake pedals, as well as carpets and seats
- Tire mismatch
- Missing screws around the dashboard, or traces of its removal
- Mileage on the odometer and in the VIN record do not match
However, nowadays, rollback scammers know how to hide the traces of their interference skillfully. Thus, the best way to determine if a rollback is taking place is to have the car checked out by a qualified mechanic. Read how to check odometer rollback in this article.
Water Damage Title
This title is assigned to a vehicle that has suffered from natural disasters, such as a flood, a hurricane, or heavy rain. Here are the most common causes of water damage:
- The car happened to be amid a disaster. If the vehicle was flooded entirely, severe damage to the engine and electronics are unavoidable. It is not recommendable to buy such a car.
- The vehicle was caught in heavy rainfall. The driver might have left the car the windows open, which led to the water getting inside. Car owners receive reimbursement while the vehicles proceed to an auction.
Water damage title cars require an inspection of independent experts. They will carry out a complete analysis of the vehicle and indicate the level of issues caused by water.
Hail Damage Title
A car receives such a title due to the damage caused by bad weather conditions, namely, hail. The vehicle’s body often has dents of various severity. Also, front and rear windows and mirrors may be broken. A car damaged by hail is worth considering as a purchase option as, typically, a minor repair is enough to return the vehicle to an excellent functional and esthetical state.
If the body or individual parts are damaged, you can replace them to restore the car. Dents can go through a removal procedure by vacuum straightening, with the preservation of original paint.
Junk Title
Vehicles with a Junk record entry have suffered significant damage and were listed in the database with the mark “total loss.” It could be due to a severe issue with the transmission, brake system, or engine. Such a repair would have exceeded the car’s market value. Besides, a vehicle may end up with a junk title due to an accident not covered by an insurance company and its owner not willing to pay its repair costs.
Vehicle specifications and requirements may vary from state to state. They are unsuitable for American roads, so they cannot be re-registered in the United States and operated in the country.
How Much Does a Branded Title Affect Vehicle Value?
Needless to say, a car with a branded title decreases in value for good. Typically, a vehicle would lose 20-40% of its Blue Book value. However, only a qualified expert can evaluate and determine the market price for branded title vehicles.
There is a wide variety of branded titles for vehicles. They all signify different issues caused by factors varying in nature and severity. Thus, a used vehicle’s cost will highly depend on the specific title the car has received.
Should I Buy a Branded Title Car?
If you are still undecided about whether you should become the new owner of a car with a branded title certificate, take a look at the pros and cons of such a purchase.
The branded title vehicles market offers the following advantages:
- The opportunity to pay less than for new or clear title cars
- The possibility of finding a vehicle with minor damages
However, branded title cars often have the following downsides:
- A chance to miss the signs of safety-threatening damage
- Potential high repair costs
- Possible complications receiving a new insurance
So, after all, is a branded title car worth buying? It is solely up to your personal preference and depends on your willingness to invest the following resources:
- Time for picking the car and inspecting it
- Money for the repair
- Comfort when having to deal with a used car, its documentation, and possible insurance issues
All in all, a branded title vehicle may be a good investment if you are on a tight budget. The critical factor is for you to know what kind of car you are buying. Be sure to check all its characteristics and history before closing the deal.
How to Find Good-quality Branded Title Car: Quick Instruction
Buying a used car is always a challenge. However, if you choose a wise approach, you will minimize the risks and save up to 50% of the vehicle’s market value.
We have prepared step-by-step instructions, following which you can succeed in the process of buying a branded title car:
- Decide on the general features of the vehicle that you want, from the brand and model to the size and color.
- Think about your maximum budget.
- What is the maximum mileage you are willing to consider?
- What type of damage and branded title are acceptable.
- What is the maximum budget you are willing to spend on this car?
Then, find an honest seller, select a list of lots that meet your search criteria, and analyze each step by step:
- Document type. The first step is to start studying the lot with its documents. It is necessary to immediately discard lots for which the document type is designated as “BILL OF SALE,” “PARTS ONLY,” or “JUNK-NO TITLE.” It means that these cars are without documents and can only be sold for spare parts. You should also carefully look for such designations as “Title to be obtained” or “Title pending.” It means that the documents have not yet been submitted to the auction, and some delays in their registration may follow.
- Check the car’s photos. Pay attention to whether the gaps between body elements are minimal. All parts should be tightly adjacent.
- Confirm the deployment of airbags. Unscrupulous sellers can often hide it, but such cars should be cheaper because the restoration of security systems will require additional costs.
- Sales history. Next, check the car for previous sales at auctions. You can do it by decoding the vehicle’s VIN.
- Inspection. In any case, if, after checking on all of the above points, you still have doubts about the car, it is better to invite an inspector to check the vehicle.
Summary
Buying a used car with a branded title may seem to be a stressful affair in the beginning. However, when you get to know the nuances of the process and what to expect from the market offers, you will be able to pick a vehicle that will serve you for years to come.
FAQ
Buying a used car is an important step, and for the sake of a good deal, it is сrucial to ask questions. We have replied to the most common inquiries regarding used cars with branded titles sales.
How do you remove a branded title?
It is impossible to remove a branded title from a vehicle for good. It is a part of the car’s history. However, you can fix a Salvage title and transform the vehicle into a Rebuilt status. To do this, you have to purchase the car with a salvage title, repair it, get it inspected, and finalize the paperwork.
Can you insure a branded title car?
The answer to this question also depends on the type of branded title the car has. For instance, you cannot get a Salvage title vehicle insured since it has been declared a “total loss.” However, if you manage to get it a Rebuilt title, insuring it will be possible.
What is the difference between a branded title and a Salvage title?
In short, Salvage title cars are vehicles with title brands. Salvage title cars are not driveable due to a past incident. A branded title vehicle also typically also has certain defects and damage. However, they usually do not need major damage repair to function properly.
Is a branded title bad?
A car with a branded title is not necessarily bad. Branded title vehicles require a lot more time and money investment than new cars or the clear title ones. However, with an honest seller and a high-quality repair, it can be a really great deal!
Can you trade in a car with a branded title?
Yes, you can. If you have repaired a Salvage title car and received a new title “Rebuilt” for it, you have the right to trade it in. However, keep in mind that it could be a challenge, as not all dealers accept branded title vehicles.
How much should I pay for a branded title car?
The car’s price with a branded title depends on various factors, from the type of damage it has to its manufacturing year. To know the approximate price range for such vehicles, take the car’s market cost and deduct 20-40% of its original value.