Car Titles to Know Before Participating In Online Car Auctions A car title is a legal document that tells you about the ownership of the vehicle along with the details of the condition of the vehicle, its VIN, make and model, and manufacture year. There are various online car auction websites that categorize cars under different titles. If you are new to the world of online used car auctions, coming across different titles can be confusing. It is, therefore, important to have a basic understanding of each title type before participating in online car auctions. Read on, as we discuss some popular car titles available on the market.
1. Junk Title A Junk title is a title given to cars that are both legally inoperable and non-repairable. Bidders usually participate in junk car auctions for spare parts; the parts that are beyond the scope of repair or reuse are sold as scrap to extract their metal value. Car auctions for junk title cars usually see mechanics and scrap dealers bidding for the cars. If you are looking for any parts for your vehicle, register with a reputable online auction website to access their inventory of junk title cars.
2. Reconstructed Title Reconstructed title, also known as Rebuilt title, applies to salvage title cars that have been repaired to make them roadworthy. Reconstructed title cars are usually those cars that have met road accidents in the past, but have been repaired. Buyers must exercise caution when bidding for reconstructed title cars. It is advisable to engage a knowledgeable third-party vehicle evaluator/mechanic to ascertain the extent of damage and the cost of repairs. There are some online vehicle auction websites that assist with registered third-party evaluators, that help buyers to get a clear picture of the condition of vehicles.
3. Water Damage Title Water damage title is for cars that have been flooded or significantly damaged by water, during floods, hurricanes, thunderstorms, and other natural phenomena. Any car with water damage must be inspected thoroughly by a professional mechanic to identify the extent of damages and to have an estimate of the repair and servicing expenses.
4. Clean Title A clean title indicates that the car has never been deemed a total loss and has not been involved in any accident, flood or theft. A clean title signifies no impending repairs or expenses to incur in its current state; such cars are also eligible for a car loan. Having said that, a clean title vehicle doesn’t mean the car has never been damaged. This is one of the reasons, most of the buyers participate in clean title automobile auctions.
5. Bonded Title A bonded title indicates that the ownership details of the car are missing. In this case, the new owner secures a bond equal to the car's value, which in turn protects the owner's interest if there are other claims to the car. The bonded title is usually valid for 3-5 years.
Last Word Car titles say a lot about the history and current condition of the vehicle. It is, therefore, important to have a basic understanding of titles when shopping for used cars. Last but not the least, always choose reputable online used car auction platforms to avoid scams.