Exploring a vehicle title is a critical part of every used car buying/selling process – yet, it’s often overlooked. For too many people, these documents are just another legal formality; a nuisance to be taken care of as swiftly as possible so the deal could go through. The truth, however, is quite different.
Titles are treasure troves of essential info, containing details on a vehicle’s history, condition, and most importantly, legal status. As such, they are keys to making smart decisions, whether you’re browsing used cars for sale in Corsicana or looking to offload your old junker for a top price. So, let’s dive in and see what they are and how they work in Texas.
What are the types of titles?
Based on the condition and history of the car, the Texas Department of Motor Vehicles (TxDMV) can issue several different types of titles. Each document is a different color, making it super easy to distinguish, so that’s how we’ll break them down.
Blue: Clear title
Whether you’re buying or selling a car, this is the golden standard. The Blue Title means that the vehicle has no record of major damage, theft, or insurance total loss. In other words, the vehicle is 100% “clean” and roadworthy. Naturally, rides with clear titles boast the highest resale value and typically have no issues with registration or insurance.
Brown: Clear title duplicate
Brown color simply means that the title is a certified duplicate, issued because the original title is lost or damaged. For all intents and purposes, the Brown Title is the same as the Blue one, acting as a legal and valid proof of ownership of the vehicle.
Purple (Dark Pink): Salvage title
This title is issued when an insurance company declares the vehicle a “total loss”. Typically, this means that the vehicle incurred severe collision, flood, or fire damage – to the point where the total cost of repairs exceeds the vehicle’s market value at the time of damage.
Needless to say, salvage vehicles cannot be legally driven on Texas roads. However, it must be noted that “salvage car” does not equal “junk car”. In many cases, these rides can be rebuilt – and retitled – making them roadworthy and eligible for registration once again.
Rebuilt (Reconstructed) title
The name “Rebuilt Title” is somewhat misleading and a frequent cause of confusion among used car buyers and sellers. The reason is that this isn’t a title in its own right. Rather, it’s a notation on a valid title, showcasing that the vehicle has been repaired/rebuilt, inspected, and deemed roadworthy by the TxDMV. Note that while these vehicles can be legally driven and resold in Texas, the “rebuilt” label can impact their value and insurability.
Orange: Non-repairable title
If the damage to a vehicle is so extensive that it cannot be repaired or rebuilt to meet the Texas road safety standards, it will receive an Orange Title. These rides cannot be legally repaired, retitled, or driven – but they are not worthless. You can still get a good price if you sell them for parts or as scrap, especially if you have a reputable scrap or pick-n-pull yard near you.
Special case: Bonded Title
In the majority of cases, buying/selling, and registering a car in Texas requires a valid title as proof of ownership. However, if the evidence of ownership is incorrect, incomplete, or non-existent (i.e., lost, severely damaged) – you can still claim and register a vehicle!
To do so, you’ll have to purchase a surety bond from an auto insurance company or any agency licensed to sell car surety bonds in Texas. With this document, you can then apply for the Bonded Title, which, once approved, allows you to register your ride.
How do vehicle titles affect resale & insurance?
As mentioned above, different titles can impact the vehicle’s resale value and potential, as follows:
- Blue Titles typically bring the highest value and resale potential, as they signal reliability both in legal and functional terms.
- Purple Titles (with or without the Rebuilt Label) generally raise concerns about a vehicle’s safety, reliability, and longevity. As such, a Purple Title can significantly cut the ride’s market value – usually from 20% to 40% (sometimes even more).
- Orange Titles generally make vehicles unsellable to regular buyers. Still, they do hold value for DIY enthusiasts, salvage yards, or used parts dealers, which you can capitalize upon.
In addition, the type of title will impact the extent of insurability of a used car (or, at least, the amount of hassle you’ll encounter during the process):
- Blue Title: Insuring these rides is super-straightforward. For the most part, you won’t have any issue getting full coverage (liability, collision, comprehensive);
- Purple Title: Salvage cars cannot be insured for road use until they are rebuilt and reclassified.
- Rebuilt Title vehicles can usually be insured for liability with minimal hassle. However, getting collision or comprehensive coverage can be quite challenging. Insurers may demand additional inspections or charge higher premiums (or both), and some agencies may not even offer coverage beyond liability.
- Bonded Title: Typically, these rides can be insured like any other, but insurance agencies may require additional documentation or proof of ownership. Even so, you shouldn’t have too much trouble obtaining full coverage.
Where can I find top-value used cars for sale near me in Corsicana, TX?
Looking for top deals on trucks, SUVs, or any other vehicle type? Look no further than B.Y.O.T.! We boast a superior collection of rides of every make, model, shape, and size – and we’re ready to part with them for a price ideally suited for your budget!
Looking to sell your junker or old clunker? No problem – we’re ready to offer the best deals in the region, and we’ll even throw in a free tow regardless of whether you reside near Pioneer Village or closer to Lake Halber Park. With a process that is super-straightforward, devoid of any car-buying scams or complications, and totally hassle-free, you’ll enjoy a car-buying/selling experience like no other! Reach out to us today and discover why we’re #1 in Texas and beyond!
