A branded title is a permanent designation on a vehicle's title indicating that the vehicle has experienced significant damage or other serious issues, often due to an insurance incident resulting in a total loss
. This "brand" signals that the vehicle has a blemished history, which can affect its value, insurability, and safety perception. Common reasons for a branded title include:
- Salvage title : The vehicle was declared a total loss by an insurance company because repair costs exceeded its value, often due to severe damage from accidents, natural disasters, or other events
- Rebuilt title : The vehicle was previously damaged but has been repaired and passed state inspections to be roadworthy again
- Odometer rollback : The vehicle's mileage was tampered with to show less usage, which is fraudulent and noted on the title
- Lemon title : The vehicle had recurring, unfixable problems and was repurchased by the manufacturer under lemon laws
- Damage from hail, water, or fire : Significant damage from these causes can also result in a branded title
Once a vehicle receives a branded title, it cannot be reverted to a clean title legally
. Buyers should be cautious as branded titles indicate potential risks and reduced resale value
