Return to site

Understanding Branded car titles

· automotive,auto finance,auto loans,auto title,cars
branded title loans

When it comes to purchasing a used car, it's vital to know whether or not the vehicle you're prospectively thinking of buying has been in a major accident/collision or has suffered alternative types of serious damage. This information is typically and always reflected in the car's title. If the car has been compromised significantly, it's then termed or coined as a branded title by state agencies. Title branding can't be executed by private parties, only through a state agency.

Types of Title Brands  

There are a handful of common types of title brands, and insight into each can help you become more educated on the subject before you purchase a car!

1. Lemon Title Brand - Most states have laws that allow consumers to return new cars that are proven to be excessively and consistently defective after purchase. This is known as a lemon law that works to protect consumers who've poorly made products.

2. Odometer Roll Back Title Brand

A car's mileage has huge impacts on the car and it's overall value. Barely driven used cars fetch higher prices than those cars with lower mileage. If it's been proven that your vehicles odometer has been rolled back by a seller, it will be given an odometer roll back title brand.

3. Salvage Title Brand

If a car suffers damage that is more to repair than its market value, it may be issued a salvage car title. These are commonly distributed in scenarios where insurance companies declare a policyholder's vehicle to be a complete loss.

4. Water Damage Title Brand

Both rain and encountered floods are devastating. They can be truly damaging to vehicle that can barely survive them. Flood water causes mildew and mold within the car's interior, and in turn, ruins the health of the vehicle's engine. If a vehicle has been compromised by floods or other types of water damage, it'll be given a water damage title brand.

5. Hail Damage Title Brand

Almost 60% of severe weather insurance claims in the year 2015 were attributed to natural hail! And, at the same time, it's been reported that $1 billion in property damage is cause by hail each year alone. Hail damage can have significant impacts on resale values of a car. Hail damage can be more severe to the naked eye, so thorough visual inspections are highly advised!

Another thing to watch out for is title washing. The best way to avoid purchasing a used car whose auto loan title, or vehicle title branding, has been wash is through a vehicle history report! Doing your research, being properly prepared, and fully aware of your financial situation will put you in a good place before you make any big purchase. Read more about vehicle title branding from https://en.wikipedia.org/wiki/Vehicle_title_branding.