BRANDED AUTOMOBILE TITLES
A branded title on an automobile refers to a vehicle title that has been permanently marked by a state’s Department of Motor Vehicles (DMV) (or equivalent agency) to indicate that the car has experienced significant damage, issues, or unusual history affecting its safety, value, or legality.
It’s essentially a warning label that the vehicle is not “clean title” and that something major has happened in its past.
Here are the most common types of branded titles and what they mean:
Common Types of Branded Titles
1. Salvage Title
• Issued when a vehicle has been declared a total loss by an insurance company due to collision, flood, fire, or other damage.
• Usually, the repair cost exceeded a certain percentage (often 75–90%) of the car’s value.
• It’s illegal to drive until repaired and inspected by the state.
2. Rebuilt (or Reconstructed) Title
• Previously a salvage vehicle that’s been repaired and passed a state inspection.
• Legal to drive, but its history will always show it was once totaled.
• Typically worth 30–50% less than a clean title car.
3. Flood Title
• Indicates the vehicle sustained water damage, often from hurricanes or floods.
• Electrical and mechanical issues are common and often hidden.
4. Lemon or Manufacturer Buyback Title
• Issued when a manufacturer repurchases a vehicle under a state’s Lemon Law because of unfixable defects.
• Must be disclosed to any future buyer.
5. Odometer Rollback or “Not Actual Mileage” Title
• Indicates mileage tampering or that the odometer doesn’t reflect the car’s true miles.
• Greatly reduces resale value and trustworthiness.
6. Hail-Damage Title
• Vehicle suffered significant hail damage that led to an insurance total loss, even if still mechanically sound.
7. Junk Title
• The car is not repairable or roadworthy — only good for parts or scrap.
Why Branded Titles Matter
• Insurance: Many insurers will only offer limited coverage (liability only) or refuse to insure a branded-title car.
• Financing: Banks are often reluctant to provide loans for them.
• Resale Value: A branded title can cut a car’s value by 20–60%.
• Disclosure: Selling a branded-title car without disclosing it can be fraud in most states.
