Branded Title in California: What It Means and How It Affects Car Buyers 

What if that great price on a new car really was too good to be true? 

After you see an amazing price on a new vehicle in California, you may be counting down the days until you can snag some great car insurance and drive it off the lot. However, if that automobile has a branded title in California, you must be very careful about even driving it, much less buying it. Unfortunately, most people in the state don’t understand what branded vehicle designations are until it’s too late. 

What do these brands actually mean? What does the title status tell us about the car, and why is this the ultimate example of “buyer beware” for California residents? Keep reading to discover everything you need to know about branded titles in California! 

Understanding a Branded Title in California 

What are branded titles in California? In short, the brand is applied to a used vehicle’s title or registration to indicate its status. In most cases, that status should make prospective buyers think twice before buying the vehicle. 

For example, the brand will indicate whether this is a “salvage” vehicle or otherwise severely damaged in a prior incident. Other brands let you know if the vehicle was previously used as a taxi or by police (both of which would mean very high mileage and possibly rough treatment) or if it has been remanufactured or returned due to California’s Lemon Law. Brands will also indicate if the vehicle was originally manufactured outside of America and had to be modified to meet state and national standards. 

Implications of Buying a Branded Title Vehicle 

Make no mistake: Buying a branded title vehicle can be a great way to get a good deal on a car. Compared to vehicles with a clean history, these are often much cheaper, making them appealing to buyers. However, many buyers don’t realize that their “cheap” purchase may cost more in the long run for many reasons, including the fact that cars with high mileage or significant damage in their history will be more expensive to cover via their insurance company. 

But should things like a salvage title stop you from buying a used car in California? For certain buyers, the potential rewards may be worth the risks. Of course, you can’t decide on that until you know the risks and challenges of such a purchase. 

Potential Risks and Challenges 

Beyond the attractive sticker price, a branded vehicle can be a risky purchase to buyers because it might have previously been considered a total loss. Vehicles with high mileage and significant damage will be more expensive to insure and are likely to need major repairs sooner than you might think. 

How Titles Get Branded in California 

In California, the Department of Motor Vehicles requires that dealers honestly disclose a vehicle’s history report. Any car you purchase will have applicable brands marked in the “Vehicle History” report in the upper right-hand corner of the title. As always, it’s important to thoroughly inspect a vehicle’s history report and condition before making a purchase. 

Pros and Cons of Purchasing a Branded Title Car 

As you can tell, buying a vehicle with a branded title can be scarier than buying a car with a clean title. However, these automobiles may be the perfect purchase for certain buyers, provided they go into the situation with their eyes wide open. 

That means understanding the pros and cons of buying a car with a brand in its title or registration. Below, you will find more information about the advantages and disadvantages of purchasing such a vehicle. 

Possible Advantages for Informed Buyers 

The most obvious advantage of buying vehicles with branded titles is that they are cheaper than other vehicles, and a cheaper bill of sale may be important to buyers who are strapped for cash. Not all branded vehicles are as bad as others…for every vehicle that the DMV considers a total loss (meaning it has a rebuilt title), there is one that might be perfectly fine (like a previous police vehicle with relatively low mileage). 

Considerations Before Signing on the Dotted Line 

There are probably more disadvantages than advantages when it comes to buying a brand titled vehicle. It may be hard to find an insurance company that will even cover the car (particularly if it has a salvage title). You may have similar difficulty finding a lender willing to finance such a purchase. Should you buy and wish to sell the car later, other buyers may be wary, especially if it has a rebuilt title. Finally, these vehicles could develop mechanical issues far sooner than you realize, effectively negating the money you saved due to high repair costs. 

Protecting Yourself as a Branded Title Car Buyer 

If your highest priority is initially saving money, buying a car with a branded title may still be a great choice. However, thoroughly inspecting such a car beforehand will be highly important because it helps you properly weigh the risks of said purchase. 

What to Inspect When Evaluating a Branded Title Car 

The brand itself will tell you the status of the car. Beyond inspecting for signs of obvious damage and high mileage, you are better off letting a professional handle the rest of the inspection because there is much a layperson might miss. Take the time to have a mechanic you trust inspect the vehicle and research its repair history to discover if the purchase is right for your needs. 

Bought a Car with a Branded Title? Don’t Drive Without Protection! 

Now you know what a branded title in California means, including the pros and cons of buying a car that has one. You also know how to properly inspect such a vehicle to protect yourself. Once you purchase a car with a branded history, do you know who can provide it with the best possible protection? 

Here at Cost-U-Less, we specialize in keeping California’s roads safe. That means offering the best insurance to all drivers and vehicles, including titled ones that other carriers may refuse to cover. Ready to get the protection you need at a price you won’t believe? Call us at (800) 390-4071 or get a fast car insurance quote online. You can also find a Cost-U-Less office near you.