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Vehicle titles are government-issued documents that contain a lot of important information about the vehicle. Moreover, vehicle titles are also referred to as certificates that prove the legal ownership of a vehicle. These are the documents that contain a variety of information regarding the vehicle, ranging from vehicle price and vehicle’s owner’s address to license plate number.

Most importantly, the title indicates the vehicle’s overall condition. Many people are not aware of the fact that there are different types of vehicle titles. Let’s take a look at different types of vehicles and see what they mean.

Different Types of Vehicle Titles

Let’s take a look at different types of vehicle titles and see what they mean.

Clean Title

Having a clean title means that the vehicle has either never received any major damage or hasn’t been involved in an accident. If you are planning to purchase a used car, it is best to see if it has a clean title or not.

Clear Title

Vehicle titles are government-issued documents that establish proof of ownership of a vehicle. Vehicles with a clear title mean the title is without any type of lien or levy from creditors or other parties. The thing to know about this title is that it is the only title that makes you eligible for a car loan.

Salvage Title

A salvage title is issued to a vehicle that has either been stolen, sustained a significant accident or is extensively repaired. A vehicle is due to receive this title if it has lost more than 75% of its original value. Because of their not-so-ideal history, vehicles that have a salvage title can never get a clear title status.

Bonded Title

A bonded title is given to vehicles that have missing ownership documents. When this title is issued, a surity bond equal to the vehicle’s value is also purchased by the new owner as security. This makes sure the new owner is financially protected in case any ownership claims arise in the future.

Rebuilt or Reconstructed Title

This title is issued to vehicles that were once salvaged but went through significant repairs and are completely safe to use now. A reconstructed title is mostly issued by an insurance company or by the place where the repair took place such as a body shop, a collision centre, or a licensed rebuilder.

Lemon Title

A lemon title is usually given to a vehicle that has various dysfunctional components that make it unsafe to drive. However, before receiving this title, the vehicle can go for repair so it can receive a more favorable title. However, in case the problems in the vehicle are not resolved, then the vehicle is labeled as a lemon.

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