Consumer Car Buying Advice Blog

Consumers who finance vehicles with auto loans for bad credit need to be aware of branded titles as well as other notations before signing on the dotted line

Look before you leap

People with bad credit can be particularly vulnerable to car selling scams. That’s why BBB highly-rated web sites such as ours, at www.autocreditexpress.com, only work with legitimate dealers who deal with a broad spectrum of lenders and specialize in car loans with bad credit. And whether you’re aware of it or not, the best of these sites have helped people just like you raise their credit scores and reestablish their car credit by filling out an online bad credit car loan application and financing a vehicle with a second chance auto loan through their affiliate dealers.

You may have also noticed that the really good web sites try to provide their applicants with the information they need in order to make educated decisions about the kind of loan they should choose (such as a tote the note loan versus a bad credit car loan). The reasoning behind this is simple: a bad decision at this time could result in a loan you can’t afford which could turn into in a repossession that could lower your credit scores even further.

Another poor choice

But in addition to making a poor decision about a bad credit auto loan, car buyers should also be aware of the different types of used vehicles and the types of titles that are issued to them.

The majority of used cars in today’s market – and the only type of car a legitimate bad credit lender will finance – come with clear titles. This means that the vehicle has either not been in an accident or, if it has, the damage wasn’t sufficient to declare it a total loss. This means that even with a clear title, you should still have it inspected, since there could still be hidden damage.

Also remember that in the practice of “title washing”, a vehicle with a branded title is re-titled in another state with a clear title. This brings us to the topic of “branded titles”.

Branded titles

A car with a branded title has either a different-colored title with a notation on it or a notation at the bottom of a regular-looking title to differentiate it from a clean title.

Title brands vary by state and can include the following types:

Rebuilt – a vehicle that was previously branded as “salvage” but has been repaired and inspected. Even though these vehicles may be driveable, the rebuilt title permanently documents the vehicle as having been, at one time, a salvage vehicle. Bad credit lenders will not finance a salvage branded vehicle.

Salvage – a vehicle that has been damaged and would, according to state law, usually cost between 75% and 100% of its value to be repaired. In some states, the rebuilt brand does not exist and salvage vehicles that have been repaired still carry the salvage brand on their titles. Bad credit lenders will not finance a salvage vehicle.

Flood Damaged – A flood damaged vehicle can also be classified as a salvage of junk vehicle in many states. Bad credit banks will also not finance a flood damaged vehicle.

Junk – a vehicle that can only be sold for scrap or used for parts

Fleet – Although usually not a brand, most states require that any vehicle that has been used as a taxi, for a daily rental or in police use be designated as a fleet vehicle. Lenders may or may not finance a fleet vehicle.

Mileage unknown – Mileage unknown is not a brand, but most states require that a title be notated if the mileage of the vehicle is not known due to an odometer replacement or other issues. May lenders will not finance a vehicle if the mileage is unknown.

Stolen – Like a fleet vehicle, a stolen vehicle is also usually not a brand, although many states can also refuse to title a vehicle once it is stolen. Due to the damage often done to stolen vehicles, many are branded so that they can’t be re-sold.

Issues with branded vehicles

If you are a customer buying a car with a bad credit auto loan, you need to be aware that bad credit lenders will not finance a branded vehicle. Most of them will also not finance a fleet vehicle or a vehicle with unknown mileage. If you are asked to sign this type of title, you should refuse, since these vehicles have a market value that can be half that of a vehicle with a clean title.

In addition, it may be difficult to both license and insure the vehicle in your state.

The bottom line

Be very careful when signing the title to a used car. In most cases, if it is a branded title, you should walk away from the deal – especially if you are financing it using car loans with bad credit.

At Auto Credit Express we have helped literally thousands of people with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. Our national network of affiliate dealers specializes in bad credit car loans. Do you need to do more research? Our web site will help you determine how much car you can afford and, unlike other sites, our toll free number is listed on every page in case you have any additional questions.

So if you are serious about getting your credit back on track, it’s time to begin a new chapter in your life by filling out our bad credit car loan application now.

Tags: auto loans for bad credit, Bad Credit, bad credit auto loan, bad credit car loan, branded title, branded titles, car loans with bad credit, credit, credit score, repossession, second chance car loan, tote the note

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