The car title is one of the most significant things that needs to be checked when purchasing a used car. You can find cars with a branded title or a salvage title. These words might sound puzzling, yet they can say much about the history of the car.
This guide will discuss what a branded title vs. salvage title is, its impact on buying a car, and whether or not it is a smart thing to buy a car with such a title. We will simplify it, so you understand what to watch out for.
Key Takeaways
- A Salvage title is a kind of branded title issued when a car is declared a total loss. However, flood damaged, lemon buyback, or odometer fraud are also branded titles.
- Cars that have branded or salvage titles tend to be less expensive, but may be difficult to insure, finance, or resell in the future.
- Before purchasing, make a vehicle history check, request repair reports, and send the car to a mechanic to prevent expensive issues.
What Is a Car Title?
A car title is a legal document that states the owner of the vehicle. It is provided by the Department of Motor Vehicles (DMV) or another authorized body in your state. The title contains the most important items, like:
- VIN (Vehicle Identification Number)
- Car make, model, and year of the car
- The name and address of the owner
- The title status (clean, branded, salvage, rebuilt, etc.)
Once you purchase a car, the title has to be in your name. The title status will provide you with the idea as to whether the car is damaged, repaired, or has some problems.
What Is a Branded Car Title?
A branded title implies that the car has previously had a significant problem. It is not only about accidents. A branded title may say a lot of things with respect to the state and the history of the car. It contains salvage titles and other issues.
Branding can be of the following types:
- Salvage: The vehicle was totally written off
- Rebuilt: A salvage vehicle that has been repaired and passed an inspection
- Flood damage: Water gave severe difficulties
- Lemon title: The vehicle had recurring factory faults, and it was returned to the company
- Odometer rollback: The odometer had been altered to reflect a lower mileage than the actual one
- Hail damage: Hailstorms resulted in serious body damage
A branded title is, therefore, not a salvage title. Salvage title is only one of the branded titles. Salvage cars are branded titles, but not all branded titles are salvage. There are other brandings like flood damage or lemon buyback.
READ ALSO: What is a Lemon Car? Everything You Need to Know
What Is a Salvage Car Title?
A car with a salvage title is a car that has been seriously damaged, especially in an accident, as a result of flood, fire, or even after being stolen. When the repair cost exceeds the car value, the insurance companies term it as a total loss. Once it does, the DMV brands the title of the car as salvage.
The following are some of the reasons that a car may be given a salvage title:
- Severe auto crash
- Damage by flood or water
- Damage caused by a hailstorm or fire
- Recovery of theft with big parts removed
- Vandalism or any other big problems
Until a car with a salvage title is repaired and inspected, it is unsafe to drive it. Other individuals repair such automobiles and resell them at a cheaper price. However, you have to know the risks before you purchase one.
Can I Buy a Car with a Salvage or Branded Title?
You can, but you had better be very careful when purchasing a car that has a branded or salvage title. The cars are usually lower priced than clean-title cars, but they have their dangers.
Ask yourself these before you purchase:
- Did the car get repaired?
- Is it possible to get insured?
- Is the car roadworthy in my state?
- Is the title registrable?
- What is it really like behind the scenes?
Is a branded title bad? This is not always the case, but it depends on what kind of branding it is and what sort of repairs. Certain vehicles that have minor faults are repaired adequately and run well. Others can be harboring something that will end up costing you.
Pros and Cons of Buying a Branded or Salvage Title Car
Now, let us see the advantages and disadvantages of purchasing a car that has a branded or salvaged title.
Pros:
- Low Price: These vehicles are much cheaper than the models with clean titles.
- Potential Value: You could find a good deal, provided that the car was repaired correctly.
- Additional Choices: You can get hard-to-get or premium models at lower costs.
Cons:
- Insurance Issues: Some insurers will not insure branded/salvage vehicles. Others can just provide partial coverage.
- More Difficult to sell: There are future buyers who do not desire to buy a car with a branded title history.
- Poor Resale Value: It will always have a low resale value, despite the car being in great shape.
- Hidden Issues: It is difficult to determine whether the repairs were safe or done properly.
- Limited Financing: Banks might not provide funds to salvage or branded title vehicles.
How to Protect Yourself Before Buying a Salvaged Car?
Considering purchasing a car with a branded or salvage title? Then follow these precautionary measures to avoid trouble:
- Check a Vehicle History Report
Go to sites like Detailed Vehicle History, Carfax, or AutoCheck and check the complete history, title, and full background of the car. Such reports can reveal:
- Accident history
- Title branding (salvage, flood, rebuilt, etc.)
- Odometer discrepancies
- Previous owners (ownership history)
- Damage records
- Lien records
- Theft records and more
- Have it inspected by a Good Mechanic
Before purchase, get a licensed mechanic to inspect the car and look at it top to bottom. Request a safety and frame examination. Check for rust, poorly matched paint, or bad repairs.
- Request Repair Records
Request a seller to provide repair receipts and used parts in detail. Be wary when they are not able to give evidence of work performed.
- Know Your State Laws
The regulations on branded and salvage titles vary in each state. Others do not permit a salvage title in registration. Ensure that the title status is approved within your state.
- Contact Your Insurance Company
Before you purchase a car, you should ask your insurer whether they are going to cover it. Other companies will not cover branded titles or might demand a higher price.
Vehicle Databases Solution: Title Check API for Auto Businesses
The Title Check API, provided by Vehicle Databases, is a vehicle title verification tool that provides auto businesses such as dealerships, insurance agencies, finance firms, and rental agencies the ability to quickly and efficiently check the title of a vehicle. This quick and reliable API minimizes the risk, enables informed choices, and enhances customer confidence since it provides immediate access to documented title records. It is an intelligent way of safer and transparent vehicle transactions.
Final Thoughts
When looking to buy a used car, it is important to know what a branded title and a salvage title are. These indicate that the car has previously suffered from some severe problems. Although they are capable of providing huge savings, they are also risky.
A branded title is not necessarily a bad thing, but you should be careful. It is not really about the cost, so it’s important to learn the complete history of the car, have it checked, and be prepared to have insurance and repair issues.
A branded or salvage title car may suit you if you are a smart, experienced buyer, or you are on a limited budget and just need a car.
Frequently Asked Questions
Is a branded title the same as a salvage title?
No. They are not the same. Salvage title is not the only branded title. Branded titles may also refer to flood damage, lemon law, or odometer rollback. Every salvage car is branded, and not every branded car is a salvage.
Is a branded title bad?
Not always. There are some titled cars that were branded properly and are safe to drive. Some of them can have serious underlying problems. It is based on the history of the car, the work done, and how you intend to use the car.
Can I insure a branded or salvage title car?
Yes, but it is more difficult. Other insurers will provide liability cover only. Others will not insure it at all. Before purchasing, always check.
Will a branded title affect resale value?
Yes. Most buyers will not purchase a car with a branded title, even when the car is running fine. You can look forward to selling it off at a lower price.
Is a branded title good for a first-time buyer?
Usually not. Clean title cars are what new drivers should stick to. Branded or salvaged cars might require additional repairs and attention that might not be ready to be taken by first-time owners.
