Branded titles: What you need to know

Quick insights

• A branded car title indicates that a vehicle had a significant issue in the past.
• The brand that could be on a title describes the problem the vehicle has had, such as salvage, flood or lemon.
• Branded titles inform buyers of possible risks to a vehicle’s value and insurability.

Branded titles are linked to cars that have suffered noteworthy damage. The “brand” is a marker of the type or extent of an issue a vehicle has had, as opposed to the automotive brand that manufactured it. Here’s more information about branded titles.

What is a branded title?

A branded car title indicates that a vehicle has sustained significant damage or other notable issue. The brand refers to what has happened to the vehicle, such as its being salvaged, rebuilt or involved in a major accident. The designation is a sort of blemish on the car’s history, often affecting the car’s value and insurance premiums.

Types of branded titles

Although exact names can vary, the types of branded titles are basically as follows:

Rebuilt title brand

A rebuilt brand on a vehicle title indicates that the vehicle was significantly damaged but has been repaired and restored to a roadworthy condition. Various types of damage and repair can result in a “rebuilt” brand. Whatever the extent of the repairs, however, the vehicle must pass the state inspection to ensure it meets safety and operational standards.

Salvage title brand

A salvage title brand indicates that the vehicle has been deemed a total loss by an insurance company. The reason the company might do this is because of severe damage from an accident, natural disaster or some other significant event. Basically, the insurer concluded at one point that the cost of repairs exceeded the car’s value. A car with this title brand could be driven again legally if it’s been repaired and passes a state inspection.

Odometer rollback title brand

This title brand reveals that a vehicle has been tampered with to display a lower mileage than the actual distance it has traveled. This fraudulent practice aims to make a vehicle appear less used and more valuable. When evidence of this tampering is found, a brand is added to the title, so any future buyers can be aware of the odometer rollback.

Lemon title brand

A lemon brand on a vehicle title results from a recurring, unresolvable issue with a vehicle. If it cannot be fixed after a certain number of attempts, a lemon law may require the manufacturer to purchase the vehicle back from the owner. When this happens, the title receives the lemon brand, even if the issue is fixed and the car is resold someday.

Hail, water and fire damage title brands

There can be several events and natural disasters that might appear as brands on a vehicle title, including (but not limited to) hail, water and fire. If the damage from fire or a flood, for example, requires significant repairs to get a car roadworthy, the title might be branded as such.

Pros and cons of branded titles

Vehicles with branded titles may have lower purchase prices because of their checkered pasts. This potential for a bargain is the main advantage of buying a car with a branded title. Another is the quick peek into a vehicle’s history that a brand offers.

Notable disadvantages of branded car titles include:

• Higher insurance premiums: Insurance companies may charge higher premiums or offer limited coverage for branded title vehicles.
• Hidden issues or stigma: Branded titles carry a stigma despite undergoing extensive repairs and state inspection to deem them roadworthy again. Potential buyers may be wary of purchasing a vehicle with a history of damage for fear of underlying issues surfacing later. A brand title can also make purchase financing and insurance coverage difficult to obtain for a vehicle.
• Lower resale value: Branded vehicles have lower market value and can be difficult to resell. Again, people tend to be nervous about buying used cars with known issues.

How to find out if a car has a branded title

Title brands are recorded electronically and linked to the vehicle identification number (VIN). You can use a VIN to locate a title, vehicle history and, ultimately, to learn a lot about a car. Consider contacting a state DMV or using a credible online resource to find out if a car has a branded title.  

Should you buy a car with a branded title?

Whether you’d want to buy a branded title vehicle likely depends on several factors: your tolerance for risk, the purchase price and what your alternative options might be. Despite the stigma, repairs have been state-inspected to make a branded title vehicle legal to drive. Still, an extra degree of caution could be useful when considering a branded vehicle.

In summary

The types of brands that can appear on a vehicle title indicate significant events in the vehicle history. Brands can help potential buyers understand the extent of previous damage and repairs. Title brands typically impact a vehicle’s value, financing options and potential insurability.