When it comes to buying used Honda cars, understanding the different types of car titles is essential. The car title indicates the vehicle’s legal ownership status and provides important information on its history. Today, Honda of Grays Harbor will discuss three common car titles – lienholder, clean, and salvage – to help you understand a vital but often-overlooked facet of car buying.
A lienholder title is issued for the duration of a loan or lease. It signifies that a third party (usually a bank or finance company) holds a financial interest in the car. That third party – the lienholder – has the right to repossess the vehicle if the owner fails to make timely payments. Once the loan is fully paid off, the lien is released, and the owner receives a clean title.
A clean title is the most straightforward and desirable type of car title. It signifies that the vehicle has not been declared a total loss by an insurance company due to a major accident, flood, or other mishaps and that there are no outstanding liens or unresolved issues related to the car’s ownership.
Salvage titles are issued when a vehicle has been declared a total loss by an insurance company due to significant damage from an accident, flood, or another disaster. Although some salvage title vehicles can be repaired and made roadworthy, they often have a lower market value and may be difficult to insure, finance, or re-sell.
Make Informed Decisions for a Smooth Ride
Understanding the differences between title types is essential for making informed car-buying decisions. Visit Honda of Grays Harbor, and we’ll help you navigate the car-buying process with confidence to find a vehicle that suits your needs and budget.
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