It’s important to understand the differences between the types of titles available to buyers. That way, you can get the right type of insurance and have your vehicle be valued at a fair price. For cars with extensive repairs and maintenance work done, it’s important to understand the details behind the title given.
Insurance companies and auto dealerships will also be interested in the type of titles obtained. Buyers that access marketplaces to explore used cars online will also be able to browse through by titles. This opens a new avenue of opportunities for the second-hand market, while allowing more buyers into the ecosystem.
Buyers are also more aware of the nuances behind every title provided. This makes the transaction more transparent, while empowering each side of the deal. While their technical names may vary from state to state, they essentially cover the same areas within the vehicle ecosystem. A certificate of origin is also provided to share information about the title and the vehicle.
A clear title is one of the more common ones given to a vehicle. It’s the title provided when a vehicle has no significant damages that are beyond repair. These vehicles are said to not have any liens placed on them as well. It’s the most desirable of car titles to obtain, as they have significant value in the after-sale market.
In certain cases, vehicle financing can be difficult to come around when it comes to salvage or rebuilt vehicles. That’s why many buyers opt for a clear title vehicle, so that there are no issues arising during the transfer of ownership. They’re able to get the right type of funding, which makes them increasingly inclined to own a new vehicle.
Clear title vehicles also have a lienholder that may be the financial institution to whom the vehicle belongs. This may be the case when there is a financing deal worked out between the buyer and the company. Clear titles allow for a seamless transfer of ownership directly to the owner.
Depending on the extent of the damage, a salvage title may be given to a vehicle for sale. This may be the case when over 75% of the vehicle has been damaged due to a number of reasons. Salvaged vehicles can be made workable, after extensive repairs that may exceed the overall value of the vehicle.
Salvage titles become a bit more complex to deal with, as buyers opt for insurance and financing. Insurance firms generally prefer working with clear title vehicles, as it’s easier to estimate the value and premiums for these vehicles.
An extensive investigation of the salvage title vehicle may also be performed prior to providing a title to it. This can be the case when it comes to insurance for the vehicle or selling it off via an auction house. An insurance firm may also have ownership over it initially.
Rebuilt vehicles are those that have been taken out of salvaged mode and been deemed worthy to drive by the owner. These vehicles then undergo significant testing and investigations, prior to allowing them on the road. While the laws may differ from state to state, it’s important to remain compliant with the official status provided by the local DMV.
There is significant investment required to rebuild salvaged vehicles, including the insurance and processing fees involved with getting them on the road. The vehicle may also break down at any point, owing to its salvaged nature, which may increase maintenance costs over time. Owners must calculate the overall impact of purchasing a rebuilt vehicle, compared to buying a brand new car from a dealership.