Title Types
What does clean title mean? What does salvage title mean? What’s the difference between clean and salvage titles?
Vehicles are legally divided into different title types based on condition. Most states require a license to purchase vehicles of each type of title.
Salvage Title
This means the vehicle has been damaged to an extent it cannot be safely driven, and also can’t be registered or insured. The government still documents the ownership of the vehicle by issuing it a Salvage Title. This new title is usually issued when an insurance company has declared a vehicle a total loss, and that the cost of fixing it is greater than the value of the vehicle. But different places have different ways of labeling a vehicle as Salvage.
In many locations, salvage vehicles can be repaired and re-titled as a vehicle safe to drive again. Some states have a special title type for former salvage cars like Rebuilt Title or Former Salvage Title. Others just issue a new general title. In order to get this new title, most states require an inspection by an authorized professional.
Clean Title
This is a vehicle that is operatable or can be made so with some repairs. This vehicle can be sold from one person to another and sold at a dealership. It can be registered and insured.
Rebuilt Title
This vehicles was issued a salvage title, but has been repaired and gone through the state's required process to be issued a new title. It can be registered and insured.