What is a branded title on a car?

A branded title on a car indicates that the vehicle has been involved in a significant event that affects its value and insurability. The exact nature of the branding varies by state, but generally falls into these categories:

Salvage: This is the most severe branding. The car has sustained damage so extensive that its repair cost exceeds its pre-damage value. Insurance companies typically declare a vehicle a salvage after a major accident, flood, fire, or theft recovery. These cars often require substantial repairs, and obtaining insurance can be difficult and expensive.
Flood: Specifically indicates the vehicle was submerged in water. Even after repairs, hidden damage (to electrical systems, etc.) can be a major problem.
Reconstructed: Similar to salvage, but implies that the vehicle has undergone repairs to the point where it's considered drivable again. However, it still carries a brand indicating the significant prior damage. The reconstruction process may not meet the original manufacturer's specifications.
Junk: This denotes a vehicle that's beyond economical repair. It's essentially scrap.
Lemon Law Buyback: This indicates the car was repurchased by the manufacturer due to persistent mechanical problems under a lemon law.

Implications of a Branded Title:

Lower Value: Branded title cars are significantly less valuable than clean-title vehicles.
Difficult to Insure: Insurance companies may refuse to insure a branded-title car or charge substantially higher premiums due to increased risk.
Financing Challenges: Securing financing for a branded-title vehicle can be difficult or impossible, or it may require a larger down payment and higher interest rates.
Resale Difficulties: Reselling a branded-title car is significantly harder and will likely result in a lower selling price.

Important Note: Always thoroughly inspect a used car before purchasing, regardless of its title status. A pre-purchase inspection by a trusted mechanic is highly recommended, especially for branded-title vehicles. The surface repairs may hide more significant underlying problems. Understanding the branding's specific meaning in the state where the car was titled is crucial.