A branded title vehicle is a vehicle that has been designated with a permanent title branding to indicate that it has been written off due to collision, fire, flood damage, or has been sold for scrap. A branded title indicates that a car was badly damaged and then restored to good condition. The brand is an official designation put on the title by a state agency, and it indicates whether the used vehicle has been damaged or is potentially unsafe to drive. Branded titles vary by state, but the most common types are salvage, rebuilt, flood, and lemon law. A branded title lasts for the cars lifetime, and even if the car is repaired to perfection, the branded title distinction cant be removed.
Buying a car with a branded title can be risky, but it can also be an affordable option. Branded title cars are cheaper, and they may cost half the price of a comparable car with a clean title. However, mechanical issues can linger, and the costs to keep the car insured can be higher. Securing financing and insurance for cars with branded titles may also be difficult. Dishonest car sellers may try to take advantage of different title brand interpretations, and they buy used vehicles in one state and sell them in another with different laws, where the titles lose branding. Such deals are known as title washing.