Whether you're trying to make a little money on the side doing some car flipping, or you just want to save some serious money on the next car for you or your family, the auction is the place to be. Buying a car at auction can be a way to get a lot more car for your money than paying full price at the retail lot. If you are adept at auto repair, you can buy a damaged car or truck and nurse it back to health.


Then you're really saving some cheddar! But before you start raising your hand and passing out hundred dollar bills, you need to be sure you understand exactly what you're buying. It's one thing to see and touch the car or truck you are interested in so that you can have a very clear idea of what it's going to take to get it back on the road. But it's another thing altogether to know where you stand legally with this vehicle you're interested in. The fine print can really put you in a bad place. Some cars have been declared permanently off the road by the state government. If you accidentally buy one of these cars and try to register it, you'll be turned away, leaving you with a shiny, expensive piece of driveway art. The buying situations below illustrate the different states an auction or other car can be in legally. Get to know them before you jump in.

Clear Title. A clear title means that the car is ready to have its ownership transferred and is clear to be bought and registered in any state.

Most cars being bought and sold have clear titles. A clear titled car has no issues currently and is most likely to have never had them in the past. This is the best way to buy a vehicle as you’ll have a hassle free time of it. 

Salvage Title. When a vehicle has been declared a total loss by an insurance company due to an accident, theft, flood or other issue, the state will issue a Salvage Title on the vehicle. This means that it cannot be driven on the road, at least not yet. Most states have a process by which you can get a Rebuilt Title, which means you can register the vehicle for use again. First, it must be properly repaired and fully inspected by the state. They inspect your paperwork, too, so be sure everything is in order if you go this route. Also, be sure it's Rebuildable. 

Rebuilt Title. A Rebuilt Title means that the vehicle was issued a Salvage Title at some point in its life, but was repaired and inspected by the state. A vehicle with a Rebuilt Title can be registered and driven, but will always have a lower value due to the history. You can save money driving a car with a Rebuilt Title, but keep in mind that when you go to resell it, or if it ends up being a total loss, the value will always be less. Rebuilt vehicles are often not eligible for free work due to a recall.

Parts Only Title. A vehicle that has been issued a Parts Only Title can never be driven on public roads again. The state will not inspect the vehicle in order to obtain a Rebuilt Title. The vehicle can only be used for parts. You can always sell parts on eBay!

Rebuildable. The term Rebuildable applies to any vehicle that currently has a Salvage Title but is eligible to be repaired and receive a Rebuilt Title. This generally means that it does not have a Parts Only title, but a regular Salvage Title that can follow the path to layers of bondo and repair.