Why you may need a clean title?

First of all, a clean car title is required for those who want to get  Auto Title Loans. Besides, it's needed to buy a new car. Before buying, you should also know that a salvage vehicle can be repaired. Find out how it works and how a salvage vehicle can get a rebuilt title.

If you are looking for a used car to buy, you are probably interested in clean and salvage title meanings, the difference between salvage and rebuilt title, and more. If you know the difference, you can get the best deal.

In the modern world, many people cannot imagine life without a car. For some, it is just a means of transportation, for others it is a necessity that helps to get to work faster, take children to school and save time. Unfortunately, not all families can afford to buy a new car, and they have to look for used vehicle options. However, when choosing a car, you can face a number of problems.

When you buy a vehicle, you must first get the title showing the transfer of ownership. Since there are several types of titles, people often don't understand the difference between a clean title and a salvage title. Learn basic information about a clean and salvage title.

Car Title Loans
Apply online

So what is a title?

A car title is a legal document that is issued by the Department of Motor Vehicles in the state where it was registered. Thus, a title lists the former owner who sold the car and also information about the vehicle. So what does the information listed in the title include?

  • Name and address of the registered owner
  • Name of the lien holder (if the vehicle is still funded)
  • Vehicle identification number
  • Gross vehicle weight
  • Motive power
  • Make and year of manufacture
  • License plate number
  • Purchase price (when the vehicle was new)

Thus, every time the car is sold to a new owner, the title must be transferred from the previous owner to the current one. Thus, the seller of the car signs the title and hands it over to the buyer. Next, the buyer applies for a new title with their name listed as the owner. So, if you bought a car and then want to sell it, you will have to go through exactly the same procedure for transferring the title.

What does the clean title mean?

A clean title is a title you get in most situations when buying a car. Of course, a brand new vehicle has a clean title. It's also important to note that most pre-owned vehicles that can be driven safely and are insurable also have a clean title. As a rule, insurance companies insure cars with a clean title for the amount of their value.

Salvage title meaning

In the case that a vehicle is no longer drivable, it receives a salvage title. As a rule, this happens when the car was in an accident and the insurance company considered it as a total loss. Thus, the insurance company paid the value of the vehicle and it was taken to a salvage company.

So, a salvage title means that it is not safe to drive this vehicle. Moreover, it is illegal to drive a car with a salvage title in most states. Also, this vehicle cannot be registered or insured. Of course, a car with a salvage title has very little resale value as it is still damaged. Moreover, it is worth knowing that a car with a damaged odometer (or tampered one) may be considered salvage. Typically, if a car has been damaged by flood or fire, it can be given a salvage title.

It is important to know! In some places, individuals cannot buy a vehicle with a salvage title at all. Thus, only repair companies or car dealerships are allowed to buy such vehicles. However, you can apply and get Salvage Title Car Loans.

The difference between a clean title and a salvage title

Of course, before you even buy a new car, you need to study a lot of information. When it comes to a used car, the situation gets even more complicated. Thus, it is especially important for you to pay attention to the information, what is the difference between a clean title and a salvage title.

How to get a salvage title cleared?

For those looking to buy a used car, it is very important to read further information. You may not have known this, but a salvage vehicle can be repaired. Moreover, after repairs, you can even drive this vehicle. However, this is not so easy to do.

As already mentioned, to begin with, a vehicle with a salvage title must be repaired. Next, you need to receive a rebuilt title. In order to do this, the repaired vehicle must be inspected by an authorized state person. If the car is in good condition, then it will be registered with a rebuilt title. It is also worth noting that in order for the car to be registered, the company that carried out the repair (or the person) must show receipts for the repairs.

Moreover, it is important to note that rebuilt cars can also be insured. Moreover, such cars can be even financed for purchase. Of course, when repaired, the rebuilt car will have a greater resale value than a salvage car.

Conclusion

It's important to take your car purchase seriously, especially if you're looking for a used one. After reviewing all the information, you now know the difference between salvage and a clean title. Thus, salvage vehicles can become drivable if repaired and rebuilt. So, when buying a used car, you must make sure which car you will get: a clean title or a salvage title, or the one that was repaired from salvage condition. Also, make sure to buy a used car for a price that suits it.