What is considered a bad or a dirty title?
Valerie Raskovic
Nov 19, 2024
When buying a pre-owned vehicle, there are many things to consider, from the car's history and condition to its price and financing options. However, there is an issue that some may easily overlook, and it has to do with the vehicle paperwork. Vehicle title document happens to be one of the most important documents you must check before committing to the purchase. A clean title can give you a peace of mind but a dirty one can lead to decreased reliability, decreased resale value and various other financial as well as legal headaches. In this article, we'll explore some common vehicle title issues to look out for when purchasing a pre-owned car.
What is a Vehicle Title?
A vehicle title is a document that proves ownership of a vehicle. It's issued by the state's Department of Motor Vehicles (DMV) and includes information such as the vehicle's make, model, and year as well as the owner's name and address. The title also includes a unique Vehicle Identification Number (VIN) that identifies the vehicle.
For the most part there are 2 main categories of titles. First, is Clean Title which refers to a vehicle with no record of previous catastrophic events while the second is a Dirty or Branded Title usually will signify a record of catastrophic damage. What makes a title dirty is a title brand, which is a notation on a vehicle's title that indicates it has a significant issue or problem, such as damage from a flood, fire or accident or that it has been rebuilt or reconstructed after being declared a total loss. Title brands can affect a vehicle's value, safety, and resale potential and are typically assigned by the state's Department of Motor Vehicles (DMV) or a similar agency.
Common Bad Title Brands
When buying a pre-owned car, it's essential to check the title for any red flags. Here are some common bad title brands to look out for:
- Salvage Title: A salvage title is issued when a vehicle has been damaged in an accident or has been declared a total loss by an insurance company.
- Rebuilt Title: A rebuilt title is issued when a vehicle has been repaired after being damaged in an accident or has been rebuilt using parts from other vehicles.
- Flood Title: A flood title is issued when a vehicle has been damaged in a flood or has been exposed to water.
- Theft Recovery Title: A theft recovery title is issued when a vehicle has been stolen and recovered.
- Lemon Title: A lemon title is issued when a vehicle has been deemed a lemon by the manufacturer or a court.
Bonded Titles
A bonded title is a type of title that is issued when a vehicle's ownership is disputed or when the vehicle's title is missing. A bonded title is usually issued by a insurance company and requires the owner to purchase a bond to cover any potential losses. Generally, it is advised to stay away from vehicles with bonded titles as it may involve legal ownership issues that can pose a significant financial, emotional and loss of use of burden on the new owner.
Title Washing
Title washing is the process of removing a bad title brand from a vehicle's title. This can be done by transferring the title to a different state or by using a fake title. Title washing is a serious offense and can result in fines and even imprisonment.
Some states are more prone to title washing than others. Here are some states to watch out for:
- Florida: Florida has a reputation for being a hub for title washing. The state's lax title laws make it easy for scammers to wash titles and sell them to unsuspecting buyers.
- Texas: Texas is another state that is known for title washing. The state's large size and diverse population makes it easy for scammers to operate undetected.
- California: California is a state that is known for its strict title laws but it's still possible for scammers to wash titles. The state's large population and high demand for used cars makes it a prime target for scammers.
How to Check a Vehicle's Title?
Checking a vehicle's title is a crucial step in the buying process. Here are some ways to check a vehicle's title:
- Always ask to inspect the actual document before buying: Check for any notes such as 'Total Mileage Unknown' or 'Rebuilt' on the title. Since title formats vary across states, there is no standardized way to interpret them. Therefore, it is crucial to thoroughly inspect the entire document.
- Use a Title Check Service: A VinCheckUp Vehicle History report can uncover potential title issues with one simple VIN search. Reports can contain title brands and details associated with the brands and the vehicle’s detailed history.
- Check with the DMV: You can also check with the DMV in the state where the vehicle is registered to see if there are any issues with the title.
Conclusion
Buying a pre-owned car can be a complex process but it's essential to do your research and check the vehicle's title before making a purchase. By knowing what to look out for you can avoid buying a car with a dirty title and save yourself a lot of trouble down the road. Remember, a clean title is essential for a smooth ownership experience.
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