The Ultimate Guide to Car Titles & Title Brands

A car title is an official document that proves ownership of a vehicle. It records vital information about the car’s history, including changes in ownership, accidents, and legal statuses. Car titles are crucial to determine whether a vehicle is safe to drive, has a clean history, or has been involved in incidents that could affect value and safety. Here’s an in-depth look at the different types of title brands and what they mean for buyers and sellers.

What is a Title Brand?

A title brand is a designation applied to a car’s title to indicate specific events in the vehicle’s history. These brands reflect whether a vehicle has been involved in certain incidents or has a legal status that impacts its value, safety, or resale potential. Title brands are crucial to understand a vehicle’s condition, as they can provide insight into whether a car has been in an accident, suffered significant damage, or is restricted from being driven.

Common Title Brands and Their Meanings

1. Clean Title

A “clean title” indicates that a vehicle has no significant history of damage, theft, or legal issues. It’s the most straightforward title type, however, some “clean” title cars still have a history of minor damage or other events. These titles are often associated with newer or well-maintained used cars. A clean title does not have any special markings, making it the preferred status for buyers looking for a car with no known issues.

2. Salvage Title

A “salvage title” is issued when a car has been deemed a total loss by an insurance company due to theft, damage from an accident, fire, flooding, or other events. Once a title is branded with a salvage brand, it cannot be legally driven until it is repaired and passes a state inspection. This title brand indicates that the car has suffered major damage, but it doesn’t mean the car can’t be fixed. Once repaired, the car may be eligible for a rebuilt title.

3. Rebuilt Title

A “rebuilt title” is issued to a car that was previously given a salvage title but has been repaired and passed a state safety inspection. This brand reflects that the vehicle is once again roadworthy and legally drivable. Regardless, it still carries previous history, which affects its resale value.

4. Foreign Export Only

The “foreign export only” title brand is a designation indicating that the vehicle is not legally allowed to be registered or driven in the United States. Cars with this brand are typically meant for export overseas and cannot be used in the U.S. This title may be applied to vehicles that were originally manufactured or sold in other countries or vehicles of a lower safety standard. (Yikes, we know).

5. Junk Title

A “junk title” is given to vehicles that are so severely damaged or deteriorated that they are no longer considered roadworthy or repairable. These cars are generally sent to scrap yards or salvage yards, completely beyond repair. A junk title is a signal that the vehicle is no longer safe to drive or sell and can only be used for parts.

6. Lemon Title

A “lemon title” is applied to a vehicle that has been deemed defective by the manufacturer and is typically associated with a state’s lemon law. If a car fails to meet safety and performance standards after multiple repair attempts, it can be branded as a lemon. Lemon cars are typically subject to a buyback, and the title reflects that the vehicle has a history of serious, unresolved issues.

How Title Brands Affect Vehicle Purchases

When purchasing a vehicle, the title brand plays a significant role in determining the price, resale potential, and drivability of the car. Here’s how different brands can impact your decision:

Salvage and Rebuilt Titles: Cars with salvage and rebuilt titles are typically sold at lower prices, but their value can fluctuate based on the extent of repairs and the type of damage the car sustained. A rebuilt title offers buyers a chance to own a car at a significant discount compared to a clean title vehicle, but it’s essential to ensure the car has been properly repaired and meets safety standards. Salvage title cars cannot be legally driven until retitled as “rebuilt.”

Junk and Lemon Titles: Vehicles with junk or lemon titles are typically not suitable for resale, as their history indicates significant issues that could make them unsafe or unreliable. These cars are often sold for scrap or undergo extensive repairs before being considered for resale.

Clean Titles: Clean title vehicles are generally the most expensive. They are preferred for buyers who want a car with no known history of major accidents or damage, but they do not indicate the absence of past history, even accident history. With any used car, clean title or not, it is important to make sure you find a vehicle you can trust at a price you can afford.

How ReVroom Fits In

At ReVroom, we focus on helping users buy and sell rebuilt title vehicles – No salvage, junk, or lemon branded vehicles allowed. 

Interested to see what’s out there? Click here to browse local listings and here to explore other topics related to buying, selling, and owning a rebuilt title vehicle.