Branded Title: What Does It Mean?

What Is a Branded Title

Are you looking to get a great deal on a used vehicle? Then you may have already come across lower-priced options with a label of "branded title".

But what's the catch? Should I buy a car with this type of title?

We've researched all the important considerations that come with a branded title vehicle purchase.

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What is a Branded Title Car?

What Does Branded Title MeanA branded title refers to a car that has had extensive damage. For instance, a vehicle that has had issues with its odometers, or has had a defect that led to its return to the manufacturer will likely have a branded title.

While a branded title can lead to an excellent bargain, it is a good idea to carefully examine the vehicle before making an offer.

Types of Branded Titles

A branded title can refer to many title types of vehicles in various conditions. In fact, branded title vehicles have their own subcategories. Here are some of the major categories that fall under the branded title

Salvage Title

A salvage title will refer to a vehicle that has had extensive damage. For instance, a vehicle that was in a major accident will have a salvage title. There are no real criteria for a salvage title other than the fact that the vehicle has had major damage.

For instance, a salvage title can refer to a vehicle that has had only body panel damage. In other cases, a salvage title can refer to a vehicle that has engine damage issues or a vehicle that has been in a fire.

Lemon Title

A lemon title refers to a vehicle that has been brought back to the manufacturer due to extensive defects. In most states, there are Lemon Laws where a dealership is obligated to repurchase a vehicle if the vehicle’s defects have not been rectified after three repairs.

Rebuilt or Reconstructed Title

A rebuilt or reconstructed title will refer to a vehicle that has been repaired or rebuilt after extensive damage. In order for a vehicle to get what is known as an “R” title, it will need to pass a state inspection.

In some cases, a rebuilt or reconstructed title refers to a vehicle that previously carried a salvage title.

Odometer Rollback Title

An odometer rollback title refers to a vehicle that has had its odometer tampered with. Because of the tampering, it may be impossible to know the actual mileage of the vehicle.

However, it is possible that the vehicle is in otherwise perfect condition.

Water Damage Title

A water damage title refers to a vehicle that has been sitting for an extended period of time to the point that the engine is flooded.

For instance, cars that are caught in a flood or a major storm can end up with a water-damage title.

Hail Damage Title

A hail damage title refers to a vehicle that has received damage due to a hail storm. In some cases, the damage to the vehicle will not extend beyond the glass and the exterior body panels.

Junk Title

A junk title refers to a vehicle that is not drivable, and its value can only be derived from its parts.

Should I Get a Branded Title Car?

You may be wondering if a branded car is right for you. Here we will look at the pros and cons of branded cars.

Branded Title ProsPros: Why You Should

1). May provide excellent value - Some people will not consider a vehicle with a branded title. However, there are some situations where a branded title offers excellent value. This is especially true if the vehicle only has superficial damage.

2). Lower price - A branded title vehicle is generally at a lower price than a vehicle with a clean title.

3). Excellent for parts - You can purchase a junk title vehicle at a low price and the value of the parts may exceed what you paid for the vehicle.

Branded Title ConsCons: Why You Shouldn’t

1). Repair costs - A branded title vehicle may be more expensive to repair than it is worth.

2). Hard to know what exactly is wrong with the vehicle - Some branded title vehicles may have damage that will be hard to access until after you have purchased it.

3). May not be street legal - Some branded title cars may not be eligible for street use.

How to Find Out If a Car Has a Branded Title

One of the easiest ways to find out if a vehicle has a branded title is to get a vehicle history report. All you need is the VIN number, and you can use CarFax [Guide] for the title information on the vehicle.

Frequently Asked Questions

What does a branded title mean for cars?

A branded title vehicle is a vehicle that has certain issues that prevent it from having clean titles. In some cases, the vehicle may be drivable while in other cases, the vehicle can not be used on the road.

Is a branded title ok to buy?

A branded title is okay if you know exactly what is wrong with it. For instance, if a branded title vehicle has body and glass damage from a hail storm, then you know that you simply need to repair the body panels and glass.

How much should I pay for a branded title car?

The rule of thumb is to deduct anywhere from 20% to 40% off the Kelly Blue Book value.

Will insurance cover branded title cars?

You can not insure a salvage title vehicle. However, some insurance companies will insure a formerly salvaged car.

Can you remove a branded title?

No. A branded title is part of the vehicle's history.

Can you sell or trade-in a car with a branded title?

Yes. It is possible to sell or trade-in a car with a branded title.