What is a branded title on a car?

A branded title on a vehicle indicates that the car has sustained significant damage or has a history that affects its value and safety. These brands are assigned by the state's Department of Motor Vehicles (DMV) after an incident. Common brands include:

  • Salvage Title: This usually indicates that the vehicle has been declared a total loss by an insurance company due to extensive damage, often exceeding a certain percentage of its pre-damage value. Examples include damage from collisions, floods, or fires.

  • Flood Damage: This indicates the vehicle has been submerged in water to a point where it could cause mechanical, electrical, or structural damage. Saltwater immersion is particularly problematic.

  • Rebuilt Title (also called "Reconstructed"): This means a vehicle with a salvage title has been repaired and inspected to meet safety standards. However, the title will still carry the "rebuilt" designation, impacting resale value.

  • Lemon Law Buyback: The manufacturer repurchased the vehicle due to recurring, unfixable problems covered under the state's lemon law. These vehicles are often resold, but the title must reflect their history.

  • Odometer Discrepancy: This suggests the odometer reading is inaccurate, potentially indicating mileage tampering or a replaced odometer.

  • Damage Disclosure: This indicates that the vehicle has sustained significant damage but does not meet the threshold for a salvage title in that particular state.

Important Considerations:

  • Resale Value: Branded titles significantly reduce a vehicle's market value.
  • Insurance: Securing full coverage insurance can be difficult or more expensive for vehicles with branded titles.
  • Inspection: Thorough inspection by a qualified mechanic is crucial before purchasing a vehicle with a branded title, especially a Rebuilt Title, to assess the quality of repairs.
  • State Laws: Branded title regulations and definitions vary by state.