What Does Branded Title Mean on Carfax
When shopping for a vehicle, understanding the history and condition is crucial for making an informed decision. One term that often appears in a Carfax Report is "branded title," which can significantly impact a car's value and reliability. This guide explains everything buyers need to know about branded titles and how they appear on vehicle history reports.
Understanding Branded Titles
A branded title indicates that a vehicle has experienced significant damage or issues during its lifetime. When a car sustains substantial damage or encounters specific problems, the Department of Motor Vehicles assigns a special designation to its title. This designation serves as a permanent record that alerts future buyers to the vehicle's history.
The term "title brand" refers to the specific marking on a car's title. These markings are permanent and travel with the vehicle throughout its lifetime, appearing on every subsequent title issued.
Common Types of Title Brands
Salvage Title
A salvage title is one of the most common types of branded titles. This designation occurs when an insurance company determines that repair costs exceed a certain percentage of the vehicle's market value. Salvage titles typically appear after accidents, natural disasters, or other incidents causing extensive damage.
State Farm and other insurance companies often declare vehicles as salvage when damage is too costly to repair economically. Once a vehicle receives this designation, it cannot legally operate on public roads until it undergoes proper restoration.
Rebuilt Title
After a salvaged vehicle undergoes repairs and passes inspections, it may receive a rebuilt title. This designation indicates that the car has been restored to roadworthy condition and can operate on public roads again. However, the permanent record of previous damage remains.
The process of obtaining this designation requires thorough inspections by authorities. Vehicles must meet safety standards and receive approval from the vehicle registration authority before they can be driven legally.
Total Loss Designation
When damage is severe enough that repairs would cost more than the car is worth, insurers declare it a total loss. This classification often leads to salvage or rebuilt title designations. A total loss accident can result from collisions, flooding, or other catastrophic events.
Insurance companies evaluate whether repairs make financial sense compared to the vehicle's value. When they don't, the total loss determination begins the branding process.
Flood and Hail Damage
Natural disasters frequently cause branded titles because of hail damage. Vehicles affected by Hurricane Sandy and similar events often receive special designations. Water damage from flooding can compromise electrical systems, engines, and interior components in ways that aren't always immediately visible.
