Are you looking to buy or sell a car? Or are you in the process of obtaining a car loan? In any case, you've probably heard the term "branded title" and are wondering what it means and why it's important. Here's a quick rundown of “Car Branded Title” and why they might affect the value of your car.
What is a Branded Title?
In its most basic form, a branded title is a vehicle history report that shows whether the vehicle has been in an accident, declared a total loss by an insurance company, or has other types of damage. When a car is involved in an accident, the insurance company is likely to declare it a total loss if the repairs would cost more than the car is worth. The insurance company will usually assign a branded title to a car that has been repaired by professionals or the owner.
Types of Car Branded Titles
To better understand how a branded title can affect the value of your vehicle, it's important to understand the various types. Here are a few examples of the most common:
Lemon Title
The term "lemon title" comes from the fact that many states have lemon laws that protect consumers from purchasing defective cars unknowingly. Because there are no guarantees with used cars and many people buy them without taking them for a test drive, this type of brand helps buyers avoid purchasing vehicles with known issues or defects.
When a car fails repeatedly while under warranty and the manufacturer is unable to fix the problems, it is considered a lemon. The vehicle will then be issued a lemon title, indicating that it is not roadworthy, cannot be legally driven, and is dangerous to users. The lemon title brand, on the other hand, is determined by the state in which the vehicle is registered, as each state has its own laws and regulations in this regard.
Salvage Title
When a car is involved in a major accident that necessitates repairs that exceed the car's value, the insurance company declares it a total loss and issues a salvage title. A salvage title is issued to warn potential buyers that the vehicle has been in a major accident and may be unsafe to drive. Cars with salvage titles are frequently used for parts or sold for much less than their fair market value.
Rebuilt Title
A vehicle with a rebuilt title has been declared a total loss but has been repaired and is now roadworthy. If you plan to buy a rebuilt car, you can save a significant amount of money because these cars are frequently sold at a fraction of their fair market value.
However, it's important to understand that these vehicles are risky because some repairs, even if done by professionals, may not have been done correctly or will simply fail over time.
Odometer Rollback Title
Many buyers research the mileage of a car before making a purchase decision because it is one way to determine the value of a vehicle. Some sellers, however, may attempt to roll back the odometer, which is a federal offense. A rolled-back odometer is often difficult to detect, but there are a few ways to tell if it's been tampered with. A good mechanic will be able to tell if the odometer has been reset. Once confirmed, the car will be given an odometer rollback title brand, lowering its resale value significantly.
Water Damage Title
A water-damaged car is one that has been flooded in some way, as the name implies. It is critical to understand that just because a vehicle has been flooded does not automatically entitle it to a water-damaged title. In most cases, the car will be given this type of brand only if the damage is severe enough to jeopardize the vehicle's safety or drivability. When purchasing a used car, be wary of vehicles from flood-prone areas, as this type of damage can be costly to repair.
Hail Damage Title
A hail-damaged car is one that has been hit by numerous large pieces of ice that have fallen from the sky during a thunderstorm. While not as common as water damage, hail damage can be just as expensive to repair and will have a long-term impact on how the car performs.
Dents on the hood, roof, and trunk of hail-damaged vehicles are common, as are cracked or broken windshields. Though they are simple to repair, ask for a thorough inspection before purchasing.
How Much Does a Branded Title Devalue a Car?
In most cases where a car receives a branded title, the value of the vehicle will be significantly decreased. Typically, the value of the car would lose about 20% to 40% of its original value but this depends on the severity of the issue as well as the make and model of the car.
Common Problems When Selling a Car with a Branded Title
When selling a car with a branded title, you will most likely encounter some difficulties because most dealerships and private buyers are not interested in these vehicles. Working with a specialized dealership or going through an online platform that connects buyers and sellers of salvage cars is the best way to sell a car with a branded title.
Other issues you may encounter when selling a car with a branded title include:
Trouble with Insurance
Insurance companies are often hesitant to insure a car with a branded title because these vehicles are considered high-risk. In some cases, you may be able to find an insurance company willing to insure your car, but the rates will be significantly higher than those of a standard policy.
Trouble with Financing
Lenders frequently refuse to finance a car with a branded title because they consider these vehicles to be too risky. As a result, you may have to pay cash for the car or find a private lender willing to finance your purchase, which can be difficult to come by.
Hidden Issues
Mechanical issues that are difficult to detect may arise in the future, and they may be costly to repair. Regardless of brand, cars like these have issues that even you, the seller, are unaware of. Some issues may arise that have nothing to do with the branded title placed on the vehicle.
Trouble Reselling
Reselling a car with a branded title is arguably one of the most difficult and time-consuming tasks. You may have to spend hours online looking for a buyer willing to take the risk of purchasing a car with a branded title. People frequently associate branded titles with salvage vehicles with little to no value or with items that will eventually end up in a junkyard.
Things You Can Do To Sell Your Car With a Branded Title
Even if it is difficult, there are some things you can do to ensure that your car with a branded title is sold.
Lower Your Asking Price
The simplest solution is to sell your car for a lower price. A branded title car is understandably associated with greater risk, and most buyers will be unwilling to pay top dollar for these vehicles. Lowering your asking price makes the car more appealing to bargain-hunting potential buyers.
Get a Car History Report
A car history report will assist you in demonstrating to potential buyers that your vehicle has a clean history and that the branded title was placed on the vehicle due to a problem that has since been resolved. This is significant because any buyer expects sellers to be forthcoming about the vehicle's history.
Get a Documented Repair Work
By having your car repaired by a certified mechanic, you can demonstrate that the branded title has no effect on the vehicle's performance or safety. If you have gone through this process, make sure to request an invoice detailing the work done on the vehicle.
Sell Your Car at Cyrus Auto Parts
After gaining knowledge of " Car Branded Title: Does it Really Matter?" there is always an efficient right way to fulfill your needs regarding your junk vehicle. You don't seem to be familiar with Cyrus Auto Parts yet? It is Dayton, OH's credible junk yard that buys junk cars for the most money around Ohio. Check Service Areas.
Easy Steps
If you have a junk car that you want to sell, you can have the easiest experience by contacting us. No matter the condition of your car, we buy them. The value will also depend on the condition and what other features your car has that are salvageable.
We've simplified the procedure into three simple steps:
• Call us at (937)250-6982 and ask for an estimate
• Schedule a pick-up time with our tow operator (Towing is Completely Free!)
• Sign over the vehicle’s title and get paid on the spot
There is nothing more basic than that. We handle the paperwork and ensure that each of our clients is satisfied with the process. We value your time and customer service. Receive a free, instant offer in 90 seconds using online form “Sell Your Vehicle.”