Why car title type matters more than you think

Every car has a title. When you purchase a vehicle, it’s the legal document that says it belongs to you. But it’s more than a piece of paper establishing ownership. A car title establishes some important pieces of the car’s history. The title type may change if the vehicle is damaged in a collision or from a natural disaster. Inconsistent odometer readings can also affect the title type.

Though each vehicle has a title, not all titles are the same. Because title status affects the value of a vehicle as well as financing and insurance options, it’s important to recognize all the title types before buying a used car.

What does title type mean when buying a used car?

Whether you’re considering a used vehicle from a private seller or a dealer, you’re shopping in the dark without understanding the differences in title status.

In Utah, there are two main title types: clean and branded. Every title is tied to a vehicle identification number, commonly referred to as the VIN, and is recorded both on paper and electronically. Once a car receives a branded title, it is a permanent designation. The type of branding can change following repair work. For example a salvage brand may change to a rebuilt/restored.

Note that some states have different title types. If you’re considering a used car for sale outside of Utah, be sure to look at that state’s definition. If a car has a branded title in a different state, it cannot be given a clean title in Utah.

Sellers on KSL Cars may choose from these title types:

• Clean Title: The vehicle has never been declared a total loss due to extensive damage from a collision or natural disaster.

• Branded - Flood/Water: The vehicle engine was submerged in water. An insurance company declares it a total loss because it could have long-term damage, both electrical and structural.

• Branded - Manufacturer Buyback: A vehicle commonly referred to as a lemon. In Utah, it means the car had four or more repairs for the same issue, or it was out of service for 30 days or more. These vehicles have been sent back to the manufacturer to be restored to working condition, but the branding is permanent.

• Branded - Other: The car does not fit into other branded categories. This title could occur when a car has been modified, such as a kit; if it’s an import; if the mileage has been significantly altered; or if there have been safety issues.

• Dismantled Title: A salvage vehicle that will be used for parts only. It is illegal to drive.

• Rebuilt/Reconstructed: A previous salvage title, the car has been repaired professionally and is now certified as legally roadworthy. The body or frame may have been altered from its original state.

• Salvage: Given to a vehicle declared a total loss due to damage caused by a collision or natural disaster.

What is a clean title?

Every new car begins with a clean title, but the title type has nothing to do with the age of the vehicle or its general wear and tear.

A vehicle title is classified as clean if the car has never been declared a total or partial loss following a major event such as an accident or flood. Also, a clean title has no reported issues with odometer readings, and the car was never a manufacturer buyback. 

Title status changes from clean to branded in Utah when an insurance company declares the vehicle a total loss, meaning it would cost more to repair the car than its fair market value.

A clean title doesn’t necessarily mean the car is accident free, only that there was no significant insurance event reported. You may see used cars for sale with dents or even moderate damage (repaired or not repaired) that still have a clean title. A vehicle that was once stolen keeps its clean title, providing it was recovered in good condition with no serious damage.

In instances of hail damage, where the damage is cosmetic, some owners may not file an insurance claim. In that case, the vehicle may retain its clean title. However, the damage should be disclosed to potential buyers.

Browse clean title listings on KSL Cars

What is a branded title?

A branded title is usually the result of a catastrophic event such as a major accident, flooding, fire or hail damage. There are two categories within the branded status in Utah: salvage and rebuilt titles.

Search branded titles on KSL Cars

Salvage titles

A vehicle considered salvage by an insurance company may be rebuilt to be roadworthy again. When that happens, the title may be changed to rebuilt/reconstructed after certification from authorized agencies. It is illegal to drive a vehicle with a salvage title on Utah roads.

Find salvage title cars for sale on KSL Cars

Rebuilt/restored titles

The title type may change from salvage to rebuilt/restored if it has been repaired. Before it can be sold, it must be inspected and cleared by the state as roadworthy. 

In addition, Utah law requires the seller to give the buyer Utah form TC-814, written notice that the vehicle has a branded title. A dealer must place that form in the car window, but a private seller may simply show it to the buyer.

If the vehicle received cosmetic damage only — dents from a hail storm, for example — it may be given rebuilt status so it can still be driven. The vehicle must pass safety and identity inspection to be upgraded from a salvage to rebuilt title.

On KSL, you might see a listing with a rebuilt/restored title, but the title verification service reports it as a salvage title. This happens if the vehicle has not yet been registered as roadworthy. Before purchasing, check the seller’s documentation to be sure the vehicle may be registered and the title changed to rebuilt/restored.

See rebuilt titles on KSL Cars

Lemon law titles

Utah’s lemon law, known as the New Motor Vehicles Warranties Act, applies to vehicles purchased as new, meaning  the vehicle has never been titled or registered, and it was driven fewer than 7,500 miles. If the vehicle has four or more repairs for the same issue or is out of service for 30 business days, it may be considered a lemon. 

The law covers defects reported within the Lemon Law Rights Period, which is either the manufacturer’s express warranty term or one year from original delivery, whichever is shorter. The law applies to vehicles weighing less than 12,000 pounds.

A vehicle returned as a lemon receives the title designation “branded - manufacturer buyback.” To resell the car, the seller must provide a disclosure statement listing the defect(s). These defects have been repaired by a certified mechanic, but it’s wise to check them before purchasing the vehicle.

Check with insurance before buying a branded title car

The list price for a car with a branded title is typically 15% to 40% less than a clean title, but other associated expenses could be more.

Before purchasing a branded vehicle, contact your insurance company. Branded title vehicles generally may cost you less than their clean title counterparts, but they are considered a higher-risk asset. Thus, you may have higher insurance premiums. In addition, some insurers may not offer comprehensive coverage.

Financing and repairing barriers

Financing may be more challenging as well. Some banks won’t offer loans for branded vehicles, mainly because the car’s resale value may not cover the balance owed.

It could be harder to find a repair shop for your branded title car. Some mechanics and body shops decline to work on such vehicles.

KSL Cars detects title discrepancies

When a seller lists a vehicle for sale on KSL Cars, they must include the title type. To help reduce fraud, KSL Cars runs each listing through a third-party data provider for a comparison check* between what the seller listed and what KSL’s third-party records show.

This check confirms a matched title type or flags a discrepancy. The comparison check does not independently certify or guarantee the title’s accuracy. If you’d like more information about the vehicle’s history, you can order a Carfax report through KSL Cars. Carfax matches the VIN to all available records associated with the car including:

• Service records

• Odometer readings

• Accidents or other damage

• Owner history

Why buy used cars for sale on KSL Cars

Shopping for a vehicle on KSL Cars is already convenient. Save yourself even more time by filtering your search by Title Type to find the inventory you want.

Select Clean Title to see both new and used vehicles with no significant damage reported. You can then accurately compare prices, mileage and other important features.

Search clean title listings on KSL Cars

Use filters to search better on KSL Cars

There are thousands of vehicles listed on KSL Cars every day, from sedans to sports cars and trucks to SUVs. Find what you want by using our helpful search filters such as:

• Title Type

• Mileage

• Seller Type

• Price

• Make/Model

• Body Type

Shop KSL Cars today

*The KSL Cars listing title check reflects a match between seller-reported data and third-party records and does not constitute a guarantee of title accuracy.

FAQs

Does every car need a title?

Yes, every vehicle must have a car title; it’s the legal document providing proof of ownership. If it’s lost, a duplicate title may be ordered through the Utah Department of Transportation.

What does car title type mean when buying a car?

A car’s title type tells you if there has been major damage reported to the insurance company due to an accident or natural disaster.

What are the different car title types?

Utah has two title types: clean and branded. Branded titles are either salvage, dismantled or rebuilt titles.

Does car title type affect insurance rates?

Insurance premiums may be higher with a branded title due to the perceived higher risk. Also, some insurance companies may not offer comprehensive coverage.

Does car title type affect financing?

It may be more difficult to secure financing for a branded title because it is considered a higher risk asset.

Does Utah have a lemon law?

Yes, in Utah a car purchased as “new” may be designated a lemon for two reasons: if it has been out of service for 30 days, or if there have been four or more repairs for the same issue within one year or within the manufacturer’s warranty period, whichever comes first. The vehicle must have been purchased or leased in Utah, driven less than 7,500 miles before purchase and weigh under 12,000 pounds. Lemons have a branded title.

What’s the difference between a salvage and a rebuilt title?

A salvage title is given to a car considered “totaled” by an insurance adjuster. A rebuilt/restored title was once a salvage title but has now been rebuilt or repaired to be roadworthy.