If you’re looking for a used vehicle on a budget, you’ll likely come across the term “branded title.” So, what is a branded title on a car, and how can having one affect you as a driver? Although a branded car could be a great deal and a worthwhile purchase, it’s important to understand all the nuances and potential drawbacks before making a deal. For example, finding car insurance for a vehicle with a branded title may be tricky.
What Is a Branded Title Vehicle?
A branded title is a certificate stating that a car has previously incurred major damages that could permanently impact the car’s safety, performance, and value. This document exists to let buyers know about potential risks. So, if you’re buying a vehicle from a private seller and notice that the title has a brand, it’s a good idea to do some investigating.
The Various Kinds of Brands Explained
A car can get a brand in several situations, such as being totaled in an accident. The title should explain why the car you’re looking at has a brand. Here are some of the most common categories of brands:
- Altered Odometer: Changing the odometer on a vehicle is illegal and can seriously impact a car’s value, which is why cars with altered odometers will get a brand.
- Water Damage: Water damage can cause serious long-term issues, which is why severe water damage can result in a brand.
- Lemon Law: When people return cars to the dealer because they were defective and covered under lemon laws, the cars will get lemon law titles. You should know what this is to avoid buying a lemon.
- Salvage: When an insurance company declares a car a total loss, it is classified as a salvage vehicle. When comparing branded vs salvage title cars, salvage titles are not legal to drive, while certain brands are completely street-legal.
- Rebuilt: If a car was issued a salvage title and then fully repaired, it can get a rebuilt title, making it legal to drive.
How a Car Gets a Branded Title
If a car is worth less than the cost of its repairs due to any of the above reasons, insurers will typically consider the vehicle a total loss. However, some people may decide to keep the car anyway and proceed with repairs. In those cases, they’ll likely have to apply for new documentation for their car that outlines its major issues.
Risks Associated With Branded Cars
When a car has a history of major damage, there are some risks. If the car wasn’t rebuilt properly, it’s possible you could deal with similar issues in the future. Additionally, certain brands have their own unique challenges. For example, if your car has a rolled-back odometer mark, you may end up having to do major repairs sooner than expected due to the high mileage on the car. It can be hard to predict how much life is left in your car. Buying a high-mileage car may be a bad idea, as it may indicate that you’ll spend more on repairs.
To Buy or Not To Buy: Weighing Your Options
Vehicles with a brand can still be great cars, especially if they’ve undergone extensive repairs and inspections. If you’re considering getting a car with an imperfect history, make sure to do your research ahead of time.
Crucial Checks Before Purchasing a Branded Vehicle
On top of the list of things to check when shopping for a used car is its history, regardless of its status. Before you buy, have the car inspected by a trusted, third-party mechanic. They’ll be able to give you an assessment of the repairs and let you know about any potential issues.
Where To Find Accurate Vehicle History Reports
One of the potential advantages of buying a car from a private seller is the possibility of a comprehensive vehicle history. This may not be true when purchasing a used car from a dealership.
You can learn more about a car’s history of accidents, repairs, and recalls by requesting an official report. You can find reliable reports through the National Motor Vehicle Title Information System or third-party options like CARFAX and AutoCheck. These reports will give you a snapshot of a car’s history and provide up-to-date information on any reported issues.
Protecting Yourself as a Buyer
Buying cars with brands can be risky, but you can protect yourself further by working with a reputable used car dealer. Look for dealers who provide information about your vehicle’s history up front and have a positive reputation for honesty and integrity.
Insure a Branded Title Vehicle Today
From the car’s history to the various branded titles it may have, there’s a lot to look into when you’re buying a used car. If you’re thinking about getting a used car with a few marks on its record, you can get extra peace of mind with the right insurance.
Head to Freeway to explore your options and find affordable coverage for your branded car. To get started, visit your local Freeway Insurance office, get a quote online, or call 800-777-5620.
FAQs About Branded Titles — Educating the Curious Buyer
Still not sure if you should pull the trigger on buying that used car? Here are answers to some common questions you may have.
Can You Get Insurance on a Vehicle With a Branded Title?
Once a car gets a rebuilt title, it’s eligible to be insured again. However, your premiums may be a bit higher than for cars with clean documentation. This is because of the risks associated with rebuilt cars, such as the potential for mechanical issues that may end up causing an accident.
Is It Possible To Remove a Brand From a Title?
Once your vehicle has a brand on its documentation, it can’t be removed. You may hear about “title washing” services that claim to eliminate negative marks from your title, but these are illegal, fraudulent services that could land you in legal trouble.
How Does a Branded Title Affect a Vehicle’s Resale Value?
Because of the drawbacks associated with branded vehicles, they’re usually worth less than their unbranded counterparts. As a buyer, this can be great news, as you may be able to get a major discount on a fully functional car. However, this also means that the car will be worth less if you ever decide to sell it in the future.
Are Branded Title Vehicles Safe To Drive?
When a car has a branded or rebuilt title, it’s legally fit to drive. The brand only indicates that it was once damaged or unsafe in the past. Making sure that the car was repaired by a professional, reliable service can help you purchase a branded car that’s completely safe.
