What is a Branded Title: Definition

When buying a used car, one of the terms that might come up is "branded title". But what does it mean exactly? A branded title refers to a legal document that designates a vehicle as having a particular condition that affects its value. It is issued by state motor vehicle agencies, and the type of brand varies depending on the nature of the damage or issue that the vehicle has.

Branded title definitions

The most common types of branded titles are salvage titles, flood titles, and rebuilt titles. A salvage title is issued when a vehicle has been declared a total loss by an insurance company due to damage from an accident, theft, or natural disaster. The vehicle is then sold at an auction or to a salvage yard. A flood title, on the other hand, is issued when a vehicle has been damaged by water. This can be due to flooding caused by natural disasters, such as hurricanes or heavy rainfall, or from other sources of water damage.

A rebuilt title is issued when a salvaged vehicle has been repaired and restored to roadworthy condition. This title indicates that the vehicle has been rebuilt or reconstructed after being totaled, and it has undergone an inspection to ensure that it meets the state's safety standards. Other types of branded titles include lemon titles, which are issued when a vehicle has a defect that cannot be repaired after a certain number of attempts, and non-repairable titles, which are issued when a vehicle is beyond repair.

It is important to note that a branded title affects the value of the vehicle, as it can make it more difficult to resell and reduce its resale value. In addition, some lenders may not finance vehicles with branded titles, and insurance companies may charge higher premiums due to the increased risk associated with a vehicle that has been previously damaged or declared a total loss.

Titling process

A rebuilder is a person or a business that buys the damaged car and repairs it to a drivable condition. Once the repairs are complete, the rebuilt car must go through a state inspection, and if it passes, it can get a rebuilt title. The type of branded title the car receives depends on the damage and the state where the car is registered.

Title types

There are several types of branded titles, including salvage, rebuilt, flood, and hail damage. Salvage titles are given to cars that have been declared a total loss by an insurance company, while rebuilt titles are given to cars that have been salvaged and repaired. Flood titles are given to cars that have been damaged by water, and hail damage titles are given to cars that have been damaged by hail.

Saving with risk

While branded title cars can be significantly cheaper than clean title cars, they also come with risks. One of the biggest risks is the possibility of hidden damage. Even though the car has been repaired and passed the state inspection, there may be underlying issues that could affect the car's safety, reliability, and resale value. Additionally, some lenders may not offer financing for branded title cars, which means you may have to pay cash for the car.

If you are considering buying a branded title car, it's important to do your research and ask questions. Start by getting a vehicle history report, which will show the car's previous owners, accidents, repairs, and title status. You should also have the car inspected by a trusted mechanic to identify any hidden damage. Finally, consider the long-term costs of owning a branded title car, such as higher insurance rates and lower resale value.

Conclusion

Overall, a branded title is a legal definition assigned to a car that has been severely damaged, declared a total loss, and/or refurbished to a road-worthy condition. Branded title cars can be much cheaper than cars with clean titles, and if you find a deal on one that you've determined is good, go for it! If you are considering buying a branded title car, do your research, ask questions, have a mechanic check it out, and keep the costs of ownership in mind.