Types of Car Titles: Everything You Need to Know

The world of car ownership can be a bit confusing for those who aren’t familiar with the different types of car titles. A car title, also known as a vehicle title or certificate of title, is a legal document proving ownership of a vehicle. It contains vital information such as the vehicle identification number (VIN), make, model, and year. In this article, we’re going to discuss the various types of car titles you might come across and what they mean.
1. Clean Title
A clean title indicates that the vehicle has never been in a serious accident or experienced significant damage. This is the most common title status for used vehicles. When purchasing a used car with a clean title, it’s essential to check the vehicle’s history to ensure there are no hidden issues.
2. Salvage Title
A salvage title is given to vehicles that have experienced severe damage, typically from an accident or natural disaster. Often, these vehicles are considered totaled by insurance companies due to the high cost of repairs compared to the value of the car. Purchasing a salvage title vehicle is risky, as there may be underlying damage or safety concerns that aren’t evident upon visual inspection.
3. Rebuilt Title
A rebuilt title is assigned to a vehicle that previously had a salvage title but has since been repaired and inspected by certified professionals. While these vehicles have technically been restored, they may still have underlying issues or lower resale value compared to clean title cars.
4. Bonded Title
A bonded title can be issued when there’s a dispute or lack of documentation for proof of ownership – such as when an owner loses their original title or buys a vehicle with a missing title. The buyer will need to purchase a surety bond from an insurance company, covering the vehicle’s value before receiving a bonded title.
5. Lemon Law Buyback Title
This type of title indicates that a new vehicle was bought back by the manufacturer due to defects that could not be repaired after a certain number of attempts. These vehicles are required to be clearly identified as “Lemon Law Buybacks” when sold, allowing potential buyers to know they are purchasing a problematic vehicle.
6. Non-Repairable Title
A non-repairable title is given to vehicles that have been deemed irreparable due to extensive damage or deterioration, making them unsafe for use on roads. These cars can only be used for parts or scrap metal.
7. Odometer Rollback Title
An odometer rollback title indicates that a vehicle’s odometer has been illegally tampered with, typically to show lower mileage than the actual amount driven. This may be done to increase the value of the car during resale. Buyers should be cautious when purchasing a car with an odometer rollback title, as it may indicate fraud or other issues.
Understanding the different types of car titles is essential before purchasing a used vehicle. Regardless of the title type, it’s crucial to conduct thorough research on any pre-owned car to guarantee a safe and reliable purchase. Always make sure to check vehicle history reports and inspect the vehicle or have it inspected by an expert.