A branded title is issued when a vehicle has faced some significant damage and is declared a loss by the insurance company. After that a new title is issued by the State’s motor vehicle department indicating its new status. Branded titles are permanent and stay with the vehicle for the rest of its lives. Such titles vary from state to state but most common types of vehicles declared to be lemon, water damaged, salvage and odometer rollback title brands.

So, whenever you move forward when buying a new car then you should always check its title status. There are many instances in which the people find the perfect car and forget to check the branded title and later regret it. However, a branded title used car can be a good deal for you if you don’t want to spend too much on your next car purchase but you may face problems while financing it, get it insured or resell it.

There are many types of branded titles so let us have a look at these titles.

Lemon Title Brand

Most of the states in the US have lemon laws that allow people to return the vehicles if it has exceeded the cost or severity limit of mechanical problems. If the car is still under warranty malfunctions in such a way that is not safe to drive anymore then consumers can return the vehicle under lemon law. If the problem still persists after the manufacturer repairs the vehicle, a state may brand it a lemon & it will also who in the car’s history report.

Salvage Title Brand

If the vehicle has been involved in a severe accident & the cost of repairs exceeds the market value and insurance companies announce it as a loss then the car gets a salvage title. Some states also issue salvage titles to vehicles which are stolen or vandalized or not recovered in 21 days. The salvage vehicles can be resold but at a very low price.

Water Title Brand

Cars parked outside many times face hurricanes & flash floods and one get damaged by such incidents force insurance companies to list such cars as water damage title. If any car is submerged for more than 2 days in water then insurance agencies deems it water damaged to, processes the claim and retitles the car to reflect the water damage.

Hail Damage Title Brand

If any car is severely damaged in any natural incident then insurance agencies declare it as a total loss and get a hail damage title. Many states use the same hail damage title brand even if the car is damaged by flood or water calamity. Such vehicles are preferred over other branded vehicles because they have only face damage to the body and glass not in their mechanism or structural issues which is usually found in accident cars. In many states cars with extreme damages due to weather or water are given salvage title.

Odometer Rollback Title Brand

Dishonest car sellers may play with odometer readings and settings. Such a car shows less mileage than the actual distance it has been driven. Buyers often look at the odometer while buying a vehicle and can pay if the car has not been driven a lot by its owner. Odometer disconnection, rollback or resetting is a felony in States and must be reported. If anyone found doing such foul things then a car is given an odometer rollback title brand.

Should you invest in a Branded Title Vehicle?

If you really want a vehicle & don’t want to spend much then you can go for a branded title vehicle. They can go for 40 percent less than a similar vehicle with a clean title. But we suggest you have a look at the other aspects like condition, insurance, manufacturer’s warranty & other important factors.

Some states don’t allow salvage title vehicles to run on roads so check the norms before even considering such vehicles. Some vehicles can be made roadworthy but it needs to pass the inspection as it will reduce its resale value to about half or two-thirds of its estimated value.

So be confident before investing any money. Take a mechanic with you so he can check for the vehicle and you don’t have to spend more on your new purchase. A professional mechanic will find the parts that need repairing and help you estimate if the vehicle is worth buying or not.