What Does It Mean to Buy a Car with a Branded Title?

Valerie Raskovic

Mar 11, 2025

Share:

If you are in the market for a preowned vehicle there are a few things you must know before diving headfirst into the used car market. One of the most critical pieces of information about any vehicle has to do with its title status and history. A vehicle's title history provides a detailed information about the car, including any significant damage, repairs, liens, sale events amongst other valuable details. However, the main point that sets cars apart are clean and branded titles. Understanding the difference between a clean title and a branded title is essential for making an informed decision.

Do you know the implications of buying a car with a branded title? Things are not as simple as they may appear. Comparing a branded car with a clean title vehicle of the same year, make, model and mileage is like comparing apples to oranges. We can help familiarize you with all of the detailed intricacies as they relate to branded title cars as well as provide tools such as vehicle history report and instant VIN check to help aid you in getting the facts about practically any road legal vehicle.

To get a clear understand of the differences between a clean and branded title vehicles we must first start with the basics by defining each of the title types and identifying their costs and benefits.

What is a Clean Title?

A clean title is issued to a vehicle that has no recorded damage or issues that would affect its value or safety. This means the car has no record of being involved in a major accident or insurance loss that has categorized the vehicle as a total loss by an insurance company and has not been salvaged or rebuilt. A clean title is the most desirable type of title for a used car buyer, as it indicates that the vehicle is in good condition and has a clear history.

What is a Branded Title?

A branded title, on the other hand, indicates that the vehicle has a significant issue in its history causing the insurance company to declare the vehicle a total loss. Generally, a vehicle may be categorized as a total loss when the cost of the repairs exceeds 80% of the vehicles resale value.

Common types of branded titles include:

• Salvage Title: This is amongst the most popular branded title types and it is issued to a vehicle that has been declared a total loss by an insurance company, often due to a major accident or natural disaster most commonly flood, hail damage or a fire.


• Rebuilt Title: Another popular branded title brand is a rebuilt title and it is assigned to a vehicle that has been salvaged and then repaired and inspected to be roadworthy again. Vehicles with rebuilt title brands are usually vehicles which were purchased at an insurance car auction by a rebuilder or a dealer for the purpose of resale. The major concern with rebuilt vehicles has to do with the quality of the repair. Vehicle rebuilders are all different, some do an excellent job safely putting cars back on the road while others may cut corners jeopardizing the vehicles road worthiness and safety of the vehicles. What further complicates the decision of buying a rebuilt title car is distinguishing a properly repaired vehicle from one hastily assembled for profit with corner-cutting repairs.


• Flood Title: Flood title cars are vehicles that have been damaged by floodwater, which can lead to long-term issues with the car's electrical systems and other components. Flood title cars are by far our least appealing title brands because depending on the electrical systems effected in a modern car it can create electrical issues very difficult to diagnose and costly to repair. Also, another important variant in flood damaged vehicle you must consider is if the vehicle was submerged and how deeply and if it was submerged in salt water or not. Saltwater speeds up corrosion and can wreak absolute havoc on metal surfaces, wiring loom connectors and modules.


• Lemon Title: Issued to a vehicle that has been deemed a "lemon" under state lemon laws, meaning it has had multiple manufacturing defects that could not be fixed under warranty. Lemon Title cars are a mixed bag however, in our personal experience as long as you can verify that the original issue that caused the vehicle to be declared as a lemon is addressed it may be worth considering. Granted, given the fact that many lemon title vehicles may not have been involved in any type of cataclysmic incident the car should still be priced below a comparable clean title vehicle.


• Junk Title: Junk titles are assigned to vehicles that the insurance company or various governing agencies deem as unrepairable. In many states junk title vehicles are not allowed to be put back on the road and are typically sold for parts. 


• TMU Title: TMU stands for “Total Mileage Unknown” and this type of branded title is generally assigned to vehicles with a confirmed history of odometer tampering and fraud. The thing to remember about these types of vehicles is typically the mileage displayed on the cars odometer is less than the actual mileage the vehicle was driven.

Implications of Buying a Car with a Branded Title

• Value and Resale: Buying a car with a branded title is a personal decision because there are a lot of aspects you must consider and you must weigh the pros and cons. One of the biggest pros of a branded title vehicle is a considerably lower sale price. Cars with branded titles are typically sold as much as 50% off to similar clean title vehicles. Just keep in mind that they also have a lower resale value so, when you do go to sell it one day you will not be able to get as much for it as a clean title equivalent. This can make it difficult to sell the car or trade it in for a new vehicle.


• Insurance: Car insurance companies may charge higher premiums for vehicles with branded titles or they may refuse to provide certain types of coverage. This is because the risk of future issues is higher with these vehicles. The best thing to do here is to contact your insurance agency before committing to buying a branded title vehicle.


• Reliability and Safety: A branded title can indicate that the vehicle has structural or mechanical issues that could affect its reliability and safety. As we have already mentioned, not all branded cars are reconstructed properly. Even if the car has been repaired and appears cosmetically flawless, there may be hidden problems that could arise later.


• Warranty: Many manufacturers will not honor warranties on vehicles with branded titles, which means you may be responsible for all future repairs and maintenance.

How to Protect Yourself

• Vehicle Title Check: Before purchasing a used car, always perform a vehicle title check. This will reveal the title status and any issues that the car may have. You can use an online service to conduct a vehicle title check using the car's VIN (Vehicle Identification Number).


• Vehicle History Report: A vehicle history report provides a comprehensive overview of the car's past, including accident history, ownership changes, and maintenance records. Services like VinCheckUp offer detailed reports that can help you make an informed decision.


• Instant VIN Check: An instant VIN check is a quick and easy way to get basic information about a vehicle's specs, features, drivetrain and more...


• Lemon Laws: Familiarize yourself with your state's lemon laws, which provide protection for consumers who purchase vehicles with significant defects.


• Professional Inspection: By far the most effective way of protecting yourself is by getting a professional vehicle inspection. Have a trusted vehicle technician inspect the vehicle before making a purchase. They can identify any hidden issues that might not be apparent from a title check or history report.

The bottom line is that buying a branded title car is not very simple and involves a fair amount of risk that you must mitigate with some due diligence.  By thoroughly researching the vehicle's history, understanding the implications of a branded title and taking steps to protect yourself, you can make a more informed decision. Tools like a vehicle title check, vehicle history report, and instant VIN check are invaluable resources that can help you navigate the used car market and find a reliable vehicle that meets your needs.