The good looking Chevrolet with a broken left rear door might still have some of its shine left. It might look attractive and the odometer reading is low. All these stats don’t mean that it is a good buy for you. Where you legally stand with the vehicle that you plan to buy, should be the foremost consideration before you sign the dotted line. For instance - if a car declared permanently off the road by the government is purchased accidentally by the buyer, he would be unable to get it registered. It is therefore better to tread cautiously while purchasing a vehicle and learn about the various titles that can be attached to it.
Titles you Need to Know About
Used cars sold at the auctions have certain titles assigned to them and buyers need to know the meaning of each title to make a wise choice.
Clear Title
A car with the clear title has no legal restrictions and is ready to have its ownership transferred to the owner in any state. If you are someone who doesn’t like getting into the hassle of changing the titles or getting the clearance, go for a car with clear title.
Salvage Title
A vehicle declared total loss by the insurance agency is issued the salvage title. The vehicle might be stolen or damaged due to accident, flood or any other situation. Salvage vehicles are not allowed to be on the road till the time the owner gets a rebuilt title for them. To get a rebuilt title, the owner needs to repair the vehicle and get it fully inspected by the state.
Rebuilt Title
A car that was titled as salvage at some point of time might be repaired and sold with a rebuilt title. Although, the car with rebuilt title is allowed to be registered driven, it has a lower value because of the history.
Parts Only Title
The vehicle with parts only title is not allowed to run on the road as the state doesn't inspect such vehicles to give them rebuilt title. Only the parts of the vehicle are used.
It is imperative for used car buyers to be aware of the legal terms that are used by the sellers and auction sites for the vehicles. A fair understanding of what you are dealing with might save you from making a decision that is not financially rewarding.