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Archive for June 22nd, 2009

Damage Disclosure, Salvage & Rebuilt Titles.
These titles are issued by states when the vehicle has sustained damage as a result of one or more incidents. States issue salvage titles when an insurance company takes possession of a vehicle as a result of a claim. This generally occurs after a vehicle has been declared a total loss. A state may issue a rebuilt title if a vehicle sustained damage and was rebuilt or reconstructed, then placed back on the road. States issue junk titles to indicate that a vehicle is not road worthy and cannot be titled again in that state.

Lemon Laws (Manufacturer Buyback Titles).
“Lemons” are sometimes resold to consumers as used cars. The lemon laws were enacted to protect consumers from having to keep a new car that has recurring problems. If someone buys a new car with major problems, and the manufacturer fails to repair the defect in a certain amount of time, the manufacturer may be required to refund the consumer’s money by buying the vehicle back. Unfortunately, some of the vehicles which are bought back are subsequently resold as used cars.

Flood Damage Title. States issue flood titles when a vehicle has been in a flood or has received extensive water damage.