Title and Paperwork
Title Status Decoded: Clean, Lien, Salvage, Rebuilt
Title status is one of the first things we verify on every car. It determines whether we can purchase the vehicle, how the transaction is structured, and what value adjustment applies. Here is what each of the four common designations means and how each affects an offer.
Clean title
A clean title is the default. The vehicle has not been written off as a total loss, has no brand from a previous insurance settlement, and has no outstanding lien from a current lender. This is our baseline. Most luxury and exotic cars carry clean titles, and the vast majority of our acquisitions are clean-title transactions.
Requirements: The title must be in the seller's legal name, or the seller's name must appear as a registered owner on the current title. We cannot purchase from someone who is not on the title without additional documentation (power of attorney, executor letters, business resolution, etc.).
Clean title with active lien
The title is clean (no salvage or rebuilt brand) but a lender holds an interest because the car is financed. This is also fine. We work with active liens regularly. The payoff is wired directly to the lender from our closing wire and the balance goes to you. Read the full lien process here.
Salvage title
A salvage title means an insurance company declared the vehicle a total loss due to damage that exceeded a certain percentage of value (typically 75 percent, but it varies by state). The title is then "branded" salvage, and the brand stays with the vehicle for life regardless of how thoroughly it is repaired.
At launch we are buying clean title only. Salvage-titled cars are not in our current acquisition program. Phase 2 will add salvage acquisitions for cars where the underlying value justifies a restoration.
Rebuilt title
A rebuilt title (also called "rebuilt salvage" or "reconstructed") means a salvage-titled car was repaired and re-inspected, and the state issued a new title with the rebuilt brand. The brand stays with the car forever. Rebuilt-titled exotic cars typically sell at 40 to 65 percent of clean-title comparable retail value due to the permanent stigma.
We are not buying rebuilt-title cars at launch. Same Phase 2 timeline as salvage.
Bonded title
A bonded title is issued by a state when an owner cannot produce the original title and the state requires a surety bond before issuing a replacement. The bond protects against future claims if the original title surfaces. Bonded titles are unusual but legal.
We can purchase from bonded titles if the bond is current and the chain of ownership is clear. Add 14 to 30 days to the closing timeline for additional verification.
Duplicate title
A duplicate title is issued by the state when the original was lost or damaged. The duplicate has the same legal weight as the original. We can purchase from duplicate titles without any process changes. The state usually marks the title with a "duplicate" stamp; that mark does not affect value.
Out-of-state title
If the title is from a different state than where the car is registered or stored, no problem. State DMVs coordinate transfers across state lines routinely. Our national title services partner handles the paperwork in both the seller's and buyer's states.
What we require at submission
Two checkboxes on our offer form confirm title eligibility:
- That the title is in the seller's legal name, or the seller's name is listed as a registered owner on the current title.
- That the VIN provided matches the vehicle being offered.
If your situation does not fit those boxes (executor, business entity, trust, prior owner without transfer), describe it in the notes field. We can usually accommodate with additional documentation, but we will not extend a binding offer without first confirming the chain of title.
Have a title question that this post does not cover? Submit your car and describe the title situation in the notes field.