What Is a Branded Car Title? Get the Scoop Before You Buy!
Michael Collado is a car buying expert and has been a professional automotive writer since 2009. He’s written about dealership sales, vehicle reviews and comparisons, and service and maintenance for over 100 national automotive dealerships. Previously, Collado was a copywriter at the ad agency TBWA/Chiat/Day where he worked on brand campaigns for Nissan, ABC Television, Sony PlayStation, and Energizer. His recognition in the ad industry includes awards from Communication Arts and The Clios.
Collado has a Bachelor’s degree from the University of South Florida, with a major in Psychology and a minor in Marketing.
A branded car title is one way for buyers to save money on their vehicle purchases while still getting the features and quality they want.
Let’s dig deeper and see what a branded car title means and how to get the best deal when buying a car that has one.
Table of Contents
What is a Branded Car Title?
A branded car title is a designation given to a vehicle that has had some type of significant damage or defect. This document shows the history of ownership and other important information about a vehicle.
The title will show whether the car has endured a crash, been recycled for components, or contains any other problems like liens or warnings. The title can be used to determine the value of a car and its overall condition before purchasing.
Branded titles come in several varieties, such as salvage titles, rebuilt titles, junk titles, flood damage titles and odometer discrepancy ones.
Salvage-titled vehicles have been declared totaled by an insurance company due to severe damage from accidents or natural disasters like flooding.
Rebuilt titles are for vehicles that have gone through extensive repairs so they meet safety standards though there may be some issues that need addressing.
Junk cars are unable to legally drive on public roads anymore because of excessive wear-and-tear or mechanical failure.
Flood-damaged vehicles receive this type of title if they’re submerged for too long causing rusting out essential components such as brakes and electrical systems.
Odometer discrepancy occurs when mileage readings appear tampered with either intentionally or unintentionally via malfunctioning gauges/clusters.
How to Buy a Car with a Branded Title
When considering a car with a branded title, you need to thoroughly investigate and be aware of the insurance requirements.
The first step in purchasing a vehicle with a branded title is researching the Vehicle History Report. This report will provide information about the car’s past ownership, accidents, repairs, liens, and other important details that could affect its value or safety.
Once you have reviewed the Vehicle History Report and decided this is the right car for you, it’s time to negotiate price. Branded titles often result in lower prices than cars without them, but it's still important to get an accurate assessment of what fair market value should be before entering into negotiations.
Finally, always remember that even though cars with branded titles may come at discounted prices compared to non-branded vehicles, they still need proper care and maintenance just like any other vehicle. Regular servicing can help ensure long-term reliability and avoid costly repairs in the future.
Pros and Cons of Buying a Car with a Branded Title
Buying a car with a branded title can provide cost savings, making them an attractive option for budget-minded buyers.
Another advantage is that these vehicles may still have many years of life left in them and can be reliable transportation if properly maintained.
The primary downside to purchasing a car with a branded title is that it can be hard to get financing from traditional sources, as most banking institutions and credit unions will not extend loans on vehicles of this type.
Insuring the car may be a challenge, as some policies could be limited due to its past record, making it pricier or even uninsurable in certain cases.
Financing Options for Cars with Branded Titles
Finding lenders who offer loans on cars with branded titles can be challenging since many traditional lenders are hesitant to finance these types of vehicles due to the potential risks associated with them, but there are still several loan options available.
The most common type of loan for cars with branded titles is an auto refinance loan. An auto refinance loan provides an opportunity to obtain a fresh loan on your current car at a lower interest rate than what you were previously paying, with the ability to adjust payment amounts and terms as needed. It also gives you the flexibility to adjust the terms and payment amounts as needed.
Another option is an unsecured personal loan, which can be used for any purpose including buying a car with a branded title. Unsecured loans may come with higher rates but can provide more pliability in terms of repayment and shorter-term durations contingent on the lender's rules.
Tthere are some lenders that specialize in offering financing solutions for cars with bad or damaged titles like TitleMax and Carvana Auto Finance, among others.
LendingTree can help those in need of financing for cars with branded titles to find the right lender by matching them with potential lenders based on their creditworthiness and other factors.
To find the best possible deal when shopping around for loans for cars with branded titles, compare different offers from multiple sources and thoroughly research each lending option before making any decisions so that you can get the best possible rate and terms available.
Tips for Buying Cars With Branded Titles
When buying a car with a branded title, be conscious of the potential dangers and take extra precautions.
Getting an independent inspection done prior to purchasing a car with a branded title can help ensure that there are no major problems. A good mechanic should be able to spot issues such as frame damage, rust spots, worn brakes, and other hidden defects that may not be visible during just a cursory glance at the vehicle.
If possible, try to get two or three different opinions from qualified mechanics before making your decision so that you have multiple points of view on its overall condition.
It’s also wise to consider extended warranties and service contracts in case any unexpected repairs come up down the road.
Finally, make sure you understand your state’s laws regarding salvage vehicles before making a purchase so that you don't end up with any surprises or complications later on.
Make sure you read through all documents carefully before signing anything. Some dealerships offer limited coverage which may not fully protect against certain types of damages or malfunctions related specifically to salvaged vehicles like those with branded titles attached to them already.
