What do Car Titles Mean? Salvage, Rebuilt, and Clean Title
Buying salvage cars or cars with rebuilt titles sometimes is an irksome experience. From time to time, car buyers end browsing for days on a used-car shopping site. They spend hours painstakingly looking for the ideal car that fits their budget. Instead of rushing for a quick getaway for the vehicle that grabs your attention, it is vital to have an insight into what car title means. And most importantly, have a defined understanding of the types of titles-know the difference between the salvage title, rebuilt title, and clean title.
Title Branded: Transfer of Car Titles after Reselling
The title of the car (certificate of title) lists the entire legal document that the legal owner of the vehicle holds to show the valid info about the vehicle. After selling the car, the department of motor vehicle issues the certificate upon the acquisition of the car to the new owner of the vehicle. These documents include a vehicle identification number, make and year of manufacture, license plate number, and name and address info of the registered owner, hose power and weight of the vehicle, and the price of the car when it was first purchased.
As soon as the car is resold, the ownership is transferred to the buyer. The new owner takes the initiative to apply for the new title ownership with his information listed on the title. The new certificate of title is independent on car model or year of vehicle registration but rather on the condition of the vehicle. For instance, a lemon car, according to the lemon laws, is any car under warranty that have a substantial defect or repeatedly fails within a given period after purchase.
Even though a used car is cheaper, you may find yourself buying someone else problem. Therefore, whether or you are a first-time buyer or looking different style of a used car, you may have come across these phrases often: clean title, salvage title, and rebuilt title while looking for a used car. These titles of the vehicle talk more about the status of the car’s history-and its pertinent information. With an incite it may help in making a reliable decision of the car’s title that you are will to buy buying.
Maybe you are asking yourself, what it means to have a car with clean title, salvage title, or rebuilt title. Hold your hose, before the end of this blog; you will have a full understanding. Buying or selling the car with title rebranded will then be a lot easier.
What’s a Clean Title?
What does it mean to have a car with a clean title? If the title of the vehicle is clean, it shows there are no serious accident claims that your car was involved in. A brand new car comes with a clean title. Insured cars that are safely drove has a clean title.
If your car has a clean title, the insurance company usually insures the vehicle on its price (after valuation). More also, with DMV, it is easy to get new registration plates.
Buying a Used Car: What’s the Difference Between Rebuilt and Salvage Title?
Although purchasing a vehicle with a salvage title or rebuilt title is less expensive, it is important to take the precaution of its cons and pro. Unlike clean title cars, salvages car titles mean that the vehicle was involved in a serious accident, and the damage of the car exceeds the value by more than 75%. Therefore, the insurance company deemed a total loss. As a result, the motor vehicle agency will issue a salvage certificate declaiming the car is unfit to be on the road. On the other hand, the rebuilt title is the car title issued after a salvaged vehicle has been repaired, and the state authority employee has inspected the car. When the wreckage is beyond repair or insanely expensive, the car is deemed to be a total loss
For the state to re-register the car, the owner must provide the receipt that shows the repairing company, rebuilt the car. In comparison to salvaged cars, restored cars have high resale value. If you are considering buying a used car, it is essential to check whether it has a salvage or clean title.
Although buying salvage cars cost significantly less and by luck, you can get a car with minimal damages, you may experience trouble in getting a comprehensive cover.
Apart from being involved in a serious road accident, other reasons that may lead the car to be issued with a salvage title includes flood damage and hail damage. Upon its recovery, the company can rebrand the car and resell. Also, non-repairable cars are issued with a salvage title
The decision to buy a rebuilt title car depends on how contented you are with it. The advantage of buying a rebuilt title car is that you can get the vehicle on either 20%- 40% less the price of a similar car that has a clean title. Unlike a car with a salvage title, you can buy a rebuilt car with a car loan.
To minimize the risk of buying a salvage title car that is beyond repair, you can bring the mechanic to inspect the vehicle and pinpoint the part that needs repair. Also, it is advisable to buy the car form a reputable repairer and inquire more about the repairing estimates.