It’s important to note that just because a car has a salvage title, it doesn’t necessarily mean that it has undergone extensive damage. While they typically issue the salvage title when they deem a vehicle a total loss, this isn’t always the case. Insurance companies are typically the ones responsible for placing a salvage title on a vehicle and paying its claim.

Due to their unideal vehicle history, cars that have a salvage title are typically sold at drastically discounted prices and usually aren’t eligible for financing by most lenders. While salvage vehicles can be repaired to be worthy of the road, they can never be eligible to receive clear title status. Aside from clean title cars, clear title cars are the most desirable option when shopping for a used vehicle.Ĭars that have a salvage title typically have either been stolen, extensively repaired, or sustained damage beyond 75 percent of the vehicle’s original value. Clean vehicles don’t have a specified financial lien on them that prevents them from being sold and are one of the only types of vehicle titles eligible for financing. However, clear title vehicles differ from clean title vehicles in that they were once issued as salvage and have since been repaired and passed a state inspection to earn the clear title. Often confused with a clean title, vehicles with a clear title also don’t have signs of severe damage. If you’re purchasing a used car, this is the best possible title you can find. If a car has a clean title, it means that the vehicle has either never been in a reported accident or hasn’t received any major damage that would indicate that it is a complete loss. Continue reading for a brief description of some of the most common types of vehicle titles that you’ll likely see when shopping for a car. As such, it’s important to be familiar with the different types of vehicle titles and what they mean before making a purchase. Primarily, however, the title will indicate the vehicle’s condition.

Such documents provide a variety of information regarding the vehicle owner’s address, the license plate number, and the vehicle price. Here are some of the different types of vehicle titles.Īlso known as “Pink Slips,” vehicle titles refer to certificates for the legal ownership of a vehicle. The Different Types of Vehicle Titles Vehicle titles contain a lot of important information regarding a vehicle’s condition.

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