Salvage VS Rebuilt VS Clean Title. What do car titles mean | Understanding Car Titles
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A title contains important information about a vehicle and also lists the owner. A title is a legal document, of course, that is issued by the Department of Motor Vehicles associated with the state where the vehicle was registered. A certificate of title lists various items about the auto that include: the vehicle ID number, make and year of vehicle, manufacturer, gross weight of the vehicle, motor power, purchase price (when the vehicle was brand new), name and address of the legal owner, license plate number, name of lien holder (if the auto is being financed with a lender and car loan).
When selling the car, the seller has to sign the title and give it to the buyer. The buyer then has to apply for a new title branded and vehicle registration in order to establish that they are the vehicle's legal owner. The Department of Motor Vehicles will issue the new title in the new car owner's name. When the new owner receives the title, they should also alert their insurance company, which will require the title's information in order to insure the vehicle.
There are, however, different types of motor vehicle titles. The most common type of title is a clean title. When you buy a car brand new from a dealer, you'll get a clean title with the car. In fact, many used cars will come with a clean title too. A clean title suggests that the vehicle is both drivable and insurable. Insurability is important for many drivers. With a clean title, an insurance company can insure the auto for its value.
Vehicles with salvage will not have a clean title. They will have a salvage title. Salvage cars require a salvage title when they are no longer drivable. Many vehicles with a salvage title happened after the car was deemed a total loss such as in the event of a car accident. In most states, it's illegal to drive a car with a salvage title because they're unsafe. Salvage cars cannot be endowed with a legal vehicle registration or insured by an auto company. When selling a salvage car, sellers should know that these autos have little resale value. Vehicles damaged by fire or flood can also be deemed as salvage cars. Typically, auto dealerships or car repair businesses will purchase these types of vehicles.
Cars associated with lemon laws will typically be deemed as salvage cars too when the owner returns them to the dealer. Lemon laws protect other buyers from purchasing a non-functional vehicle. When buying a used vehicle, it's important to know why the former owner of a vehicle turned it back to the dealer.
Cars with rebuilt titles were formerly salvage cars. Dealerships and auto repair companies rebuild salvage autos and can then apply for the rebuilt car title. In order to get rebuilt titles, the vehicles must be inspected by an authorized inspector. Then, it can be driven legally. The inspector will require the receipt of the repairs either from the auto repair dealer or the new car buyer. Cars with rebuilt titles will have more value than vehicles with salvage titles.
If you want to buy a car to drive, you need to know if the auto comes with a clean title or rebuilt title. A car with a rebuilt motor or other parts may operate well, but it typically doesn't have the same value of a similar make / model with a clean title, as your insurance company can tell you.

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