Buying a used car is a great investment for many people. You can save money and still get a reliable working car. While shopping for a car, you might find one that has something called a salvaged or branded title. These cars can also be a great choice, but there are some things that you need to know about these types of cars before you purchase one. Here are a couple things you need to know about a branded title.
What is a Salvaged or Branded Title?
After a car has been wrecked, the title might become salvaged. This means that when the insurance company assessed the damage, they believed that the cost of repairs was more than what the car was worth. So instead of fixing the car, they just paid the owner of the car the amount that the car was worth, and the owner bought a different car.
These wrecked cars, or salvaged-title cars, then get auctioned at low prices. Dealers and individuals can buy these cars for a fraction of the cost and then can make the repairs themselves. Once the car has been fully repaired and restored, the title becomes branded. This means the car is once again in working condition, but that there was a period of time when the car was not functional.
Why Buy A Branded Title?
The main reason to buy a branded title car is that you can save a great deal of money. There are some cars that have branded titles that are practically brand new. They can be the newest model and have incredibly low mileage. Since they were previously wrecked, they were sold at a very low cost and then you only have to pay for the cost of repairs. The car may still run and work fine mechanically, but it had to have repairs. This will save you a ton of money.
What Are The Disadvantages to Buying A Branded Title?
The biggest drawback to purchasing a car with a branded title is that the resale value may not be high. This means that if you do want to turn around and sell the car, you will have to sell it for a low price. However, if you consider the fact that you bought it at a very low discounted price, then you might still come out on top, but you can't ask for the same amount that you would for a car with a clean title.
By understanding what a branded title is, you can decide if it is right for you.