When a vehicle title is “branded,” it carries a permanent mark that indicates it has suffered from major damage. This could make the vehicle less reliable, immediately decreasing its value. Dealers and salvage operations must be able to decipher title brands and be proactive to lower risks, set prices, and maintain trust with customers.
The Basics of Title Branding
Title brands are a warning label added to a vehicle’s title (often tied to its VIN record) when it has experienced past issues that could affect its current function.
However, title brands aren’t uniform across states. This inconsistency creates an opportunity for title washing, which places unsuspecting buyers or dealers in another state at risk.
Dealers should be familiar with how various title brands are defined and identified to avoid title washed vehicles.
Common Title Brands
There are over 60 possible types of title brands in the U.S. However, some title brands appear more frequently and pose a higher risk, such as:
- Salvage: If a vehicle has damage so extensive that the cost to repair would exceed a percentage of its value (as determined state-by-state), the salvage brand is applied. These vehicles can’t be registered or driven until they're repaired.
- Rebuilt: A previously salvaged vehicle that has been repaired and approved for road use is branded as rebuilt. While it's legal to sell and drive a vehicle with this brand, it reduces its value and increases buyer hesitation.
- Reconstructed: A reconstructed title brand indicates that major components of the vehicle, such as the brakes or steering, have been altered in a way that could affect the vehicle’s safety.
- Junk: Under this brand, a vehicle isn't fit for repair or re-registration; it’s intended for parts or scrap only. These vehicles cannot legally be on the road.
- Lemon: Some states allow vehicles with persistent issues to be returned to the manufacturer to repair under lemon laws, but because of the likelihood the vehicle will continue to experience issues, the title brand remains.
- Odometer Rollback: This brand is applied when there has been tampering with or inconsistency in the vehicle’s reported mileage, suggesting potential fraud.
- Weather Damage (Flood, Hail, Fire): Depending on the level of damage and state jurisdiction, severe weather damage can cause lasting electrical or structural flaws and isn't always visible during an inspection.
How to Detect Hidden Brands
Title brands aren’t always easy to detect, especially if someone went to great lengths to retitle a vehicle in another state. That’s why it’s critical to go beyond the state-issued title and run a title history check.
The National Motor Vehicle Title Information System (NMVTIS) is the only national database that collects title, brand, and theft data from nearly all U.S. states, insurance carriers, salvage auctions, and junkyards.
Even if a vehicle appears to have a clean title, NMVTIS can reveal previous branding from another state that may not show elsewhere. Running a title check protects you from making a fraudulent purchase or sale — allowing you to maintain trust with your customers.
Safety First
With inconsistent branding laws across states, relying on physical titles isn’t enough. Failing to detect or disclose a branded title, knowingly or not, can lead to fines, legal issues, and a loss of consumer trust.
Running a quick title check gives you the full picture of a vehicle’s record and helps keep you and your customers safe. It’s a simple step that can make a big difference.