Types Of Car Titles
500 Below Cars

500 Below Cars

We are revolutionizing the car buying experience!

Types Of Car Titles

Have you ever wondered about getting stuck in a situation where you will have to prove that you are the legal owner of your car? It might seem like a rare case, but the possibilities are not negligible. If someone reports your car as stolen or claims that you have illegally taken possession of your car, you will have to prove ownership of your vehicle. So, how do you plan on proving it? Will your words be enough to prove that the car you are driving belongs to you legally? Well, no.

To prove that you are the legal owner of your car, you will need to show the authorities a car title. It is one of the most important vehicle documents that you have to keep in a safe place. A car title is the only document that proves the legal ownership of the vehicle. Misplacing the document can create a problematic situation for you.

The Department of Motor Vehicles – DMV issues this document. There are a variety of different types of car titles and each of these is for a unique case.

Clear Title

A clear title is for the cars that have not incurred any serious damages in the past and are free of liens. It is the type of title that is desirable. In some cases, vehicles with a clear title are the only ones that qualify for an auto loan.

Salvage Title

A car that has a salvage title can never qualify to get a clear title. The cars with a rough history receive a salvage title. They are either reported as stolen or have undergone a significant amount of repair, the cost of which exceeds 60% of the actual car value. After extensive repairing, these cars can become roadworthy but there are zero chances for these cars to get a clear title.

Bonded Title

When there are serious issues with the original documentation of a vehicle, it qualifies for a bonded title. The stamp of the bonded title remains on the document for a minimum of three years and a maximum of five years. When the discrepancies in the original documentation are significant enough, a security bond, the worth of which is equal to the cost of the vehicle, is purchased. The security bond serves as a form of security in case someone else makes a valid claim on the vehicle.

Lemon Title

A car receives a lemon label when a significant number of its components are faulty and makes the vehicle unsafe. If even after repair these components are not functioning as they should, the car receives a lemon title.

Reconstructed Title

If a car functions properly and all its components are performing, the way they should be, but has undergone extensive repair to come into the working state; it qualifies for reconstructed car title. These vehicles are roadworthy as they are functioning properly.

Dismantled Title

A car that has sustained irreparable damage and is not suitable for use on the road is the one that receives the dismantled title. These cars are not roadworthy and only serve as a source of scrap metal for other applications.

Junk Title

When the repairing cost of a car exceeds 75% of its actual value, it qualifies for the junk title. The cars with a junk title are not roadworthy, and in many states, a junk title is same as a salvage title.

Water Damage Title

A water damage title is for the cars that have incurred damage during a thunderstorm or flood. It is possible to repair the damaged mechanic and electronic components but sometimes the damage can create problems in the future.

Odometer Rollback Title

Many car sellers play the trick of rolling back the odometer before selling the car. It hides the high mileage, which can reduce the value of the car. Only a professional and certified mechanic can detect the problem. Once odometer rollback is detected, the car will receive an odometer rollback title. 

These are the most common types of car titles you will come across when purchasing a used vehicle. If you are buying a used car, you need to have a complete understanding of each of these titles. You might end up making the wrong purchase if you do not have a sufficient amount of knowledge about all types of car titles. Stick with the name you trust in 500 Below Cars. Come and schedule a test drive today.

You will love working with us

Just ask our customers

Share this post


Get The Latest In Automotive Tips

Stay up to date with the latest in automotive with 500 Below Cars!

Dear Customers,

We are taking preventative actions to help protect you and our staff.

  • We are working with reduced staff to limit the number of people present
  • Expedited checkout. Reducing your time on-site to one hour or less.
  • Additional hand sanitizing stations and disinfection wipes available
  • We are disinfecting customer touch points and waiting area furniture as needed up to twice per day
  • We have removed magazines and other reusable reading material
  • We have enacted “social distancing” – elbow tapping and kicking feet has been fun in the meantime
  • Managers are promoting frequent and thorough hand washing and encouraging respiratory etiquette, including covering coughs and sneezes for all employees
  • We are now accepting virtual appointments via face-time video (zoom). To schedule a virtual appointment just fill out an appointment form as normal and once communicated with simply request a video appointment.

We thank you for your business and please know we are working hard to keep our employees and customers safe. We will continue to monitor this situation locally and nationally.