There are different types of car titles, also called ‘pink slips,’ that stand as certificates of ownership. When you complete the payment for a car, the car title is transferred to you. But first, how do you know what the car title says about your car? Here are the most common types of car titles that you should know!
Clear Title
This is the most preferred car title because it indicates that the vehicle has not been damaged and there are no liens on it. As the name implies, the car is clear of all issues.
Salvage Title
Issued to stolen, repaired, or vehicles that are damaged above half (60% and beyond) of the car’s market price. Cars with salvage titles have expensive repairs and they can never get a clear title.
Junk Title
Similar to the salvage title, this is for cars that have sustained damage that cost beyond 75% of the market value for the car. Junk titled cars cannot be roadworthy, but salvage titled ones can.
Bonded Title
In cases of documentation problems/issues with ownership, a security bond is purchased to remove any lien claims/ownership on the car. The security bond is usually worth the cost of the car and the bonded stamp on the title is for a period of three to five years.
Rebuilt/Reconstructed Title
For cars that have gone through extensive repairs and restoration, they may be issued a rebuilt/reconstructed title. Cars with this title are considered roadworthy but, typically with less cost value than brand new models.
Lemon Title
The conditions for a car to be referred to as a ‘lemon’ vary from state to state. Generally, the lemon title is issued when a car has too many mechanical issues affecting its components. A car that is unfit and unsafe for use with repeated failures in the same parts may be given a lemon title.
Water Damage Title
As the name implies, this title is issued when water damages mechanical and electrical parts of a car. Before buying a car with a water damage title, have a mechanic check to ensure that it’s in good condition.
Odometer Rollback Title
When the odometer of a car is rolled back to hide its actual mileage, it receives this title. Only certified and competent mechanics can confirm a rollback. By checking this, you can avoid paying more for a car that will function less.
Dismantled Title
Cars that have sustained severe damage/ gotten totaled are given dismantled titles. They can never be roadworthy, and can only be used as scrap for other car parts.
Affidavit Title
This title is issued under an affidavit when the car documents are missing but ownership or liens are assumed to be valid.
Understanding the information on any car title will help you avoid paying for an overpriced car. It will also help to prevent accidentally breaking any laws. Always cross check your car title with the previous owner or car dealership before completing payment.
It is important to understand the different types of car titles and registrations, and when it is time to renew. If you are in need of any auto tag renewals, Broward tag renewals, or any type of auto tag needs, or Broward car titles, Auto Tags of East Broward has it all! Come into Auto Tags of East Broward for all your Broward DMV alternative needs for all things auto tags. We are one of the premier Fort Lauderdale auto tag agencies. Come see us today or check out our website for more information.