Vehicle titles are also known as pink slips. They contain a lot of important information about the condition of a vehicle. They are basically proof of the legal ownership of a vehicle. There are different types of vehicle titles and you must know what each means before making a purchase. Listed below are the most common types of vehicle titles:
Having a clean title means the vehicle has never been in any serious accident or has not received any major damage that could declare it a total loss. Moreover, clean title cars don’t have any financial lien on them that prevents the vehicle from getting sold. Plus, these types of vehicle titles are completely eligible for financing. If you are planning to purchase a used car, this is without a doubt the best title you can find.
Clear titles are usually confused with clean titles, but they both are different. Although clear title vehicles don’t have any signs of major damage, there was once a time when these vehicles were declared as salvage. However, after all the repairs were done and the vehicle passed a state inspection, it earned the clear title. After clean title vehicles, clear title vehicles are considered the most desirable option.
Vehicles with a salvage title have been severely damaged, stolen, or extensively repaired. While cars with a salvage title can be repaired to be worthy enough to hit the roads again, they can never be eligible to get the clear title status. Because of their not-so-perfect history, vehicles with a salvage title are not sold at ideal prices and usually aren’t even eligible for financing.
Generally, insurance companies are responsible for placing a salvage title on a vehicle and they are also the ones who pay its claim.
Vehicle Titles: Bonded title
When a vehicle has some serious discrepancies in its original ownership documents, you can get a vehicle title by using a bonded title. As soon as bonded titles are issued, you will have to purchase a security bond that matches the value of the vehicle. Moreover, vehicles that have received a bonded title can keep the title for almost three to five years.
Rebuilt or reconstructed title
These titles are given to salvage vehicles that have been repaired and are now completely safe to go on the roads again. In order to obtain a rebuilt or reconstructed title, a thorough inspection is required to make sure the vehicle is roadworthy.
The lemon title is given to vehicles that have many dysfunctional components that make the vehicle unsafe. However, before receiving the lemon title, the car can be repaired to attain a more favorable tile. In case the problems remain unresolved, the vehicle will be branded as a lemon.