What is a Branded Title?

When exploring used cars, you might encounter the term “branded title.” But what does it really mean? Should you jump for joy or run for the hills? Read on to find out. 

What is a Branded Title?

A branded title is a title that carries any designation other than “clean.” A “clean title” simply indicates the absence of a brand. If a car has experienced significant damage or an event that changes its condition, it receives a title brand, indicating a specific history. These brands can include “salvage,” “rebuilt,” “flood,” “lemon” or “rebuilt.”

Why are Titles Branded?

Titles are branded to keep buyers safe and aware about a car’s past. Brands often stem from insurance claims, where the insurer has determined that the cost of repairs exceeds a certain percentage of the vehicle’s value. Once branded, these titles signal the car’s previous issues and influence its resale value. These manifest as additional lines of text on a car’s physical title.

Common Types of Brands

• Salvage: Indicates a total loss; the vehicle cannot legally be driven unless repaired.
• Rebuilt: A previously salvaged vehicle that’s been repaired, inspected, and approved for road use.
• Reconstructed: A vehicle that was never salvaged but was significantly altered from it’s original state by adding or removing components.
• Junk: Identifies cars that cannot be reconstructed or legally operated. Indicates that a vehicle has no total resale value and can only be utilized for parts.
• Flood, Fire, or Hail:  Specifies the type of damage, whether from natural events or manufacturing issues. Typically specified in addition to “rebuilt” or “salvage” designations.

Should You Buy a Branded Title Vehicle?

Title brands keep consumers informed and safe. These brands can also offer unique opportunities. Though many branded title vehicles cannot be or should not be repaired, many can be. When restored by reliable professionals to meet original safety standards, they can be an excellent choice for a budget-conscious buyer. 

If you’re interested in seeing what’s out there, browse ReVroom — The rebuilt auto marketplace. Or, visit our blog to continue learning.