What Is a Clear Automobile Title?

A vehicle's title reflects its history.

When looking to purchase a new or used car, it is generally best to avoid titles that are not clear. A clear title simply means that the vehicle has not been junked, salvaged or had some other type of damage. If you're interested in a vehicle with any of the following titles, you may wish to continue your search for a clear title in order to avoid the risk.

Salvage Title

A car that has a salvage title means that it has been ruled as a total loss by an insurance company or regulatory authority due to severe damage.

Rebuilt or Reconstructed Title

A vehicle with a title labeled rebuilt or reconstructed means that it was previously a salvage car that has been repaired.

Flood Title

If you find that a vehicle has a flood title, this means the car has been submerged in water or has sustained some other type of water-related damage.

NAM Title

NAM, or not actual mileage, titles are attributed to vehicles that do not show the proper odometer reading, due to tampering or damage.

Hail Title

This title is given to vehicles that have sustained severe damage that has been caused by hail, and where the cost of repair exceeds the value of the vehicle.

Fire Title

A vehicle given a fire title has suffered damage inflicted by fire. Once again, the cost of repairing the fire damage was deemed to exceed the overall worth of the car.

References

• Cars.gov-auction.org: Different Car Titles Explained
• Economynj.com: Title Information