Glossary of Auto Terms

When purchasing a car in the state of Delaware, especially if you need car loans, these terms may pop up in the various paperwork and applications.

Branded Title: If a truck or auto is involved in an accident that affects the way it aesthetically or mechanically, it might get a branded title. Of course, the transformation must be serious. So it cannot be missed by a prospective buy, the title receives a large rubber stamp across the face of it, identifying the new status. A handful of the more common brand categories are: salvage, rebuilt, junked, lemon, and damaged.

Fleet Vehicle: A fleet vehicle is a vehicle that was once part of a fleet. It may have been a rental car, a taxis, a police cruiser, or other government car. These vehicles have often been well-maintained, but also have lots of wear and tear.

Flood Damage: Anytime there is a flood in one state, insurance companies total flood damaged cars, sell them, and ship them off for sale in other states to salvage yards. Seems cars from that locale miraculously wind up in other states with brand new price tags. The concern here is they may be possibly defective and severely water damaged. Auction houses are great at noting these vehicles.

Gray Market: This term refers to import vehicles from foreign countries that are sold by their manufacturer in the United States. It is technically legal, but done without consent of the manufacturer. Importers then sell the vehicles at a markup. These automobiles do not always reach U.S. emission and safety standards and may be difficult to register by the consumer.

Lemon Law: Most states protect consumers from being stuck with a car that is chronically in repair. Delaware is one of the few that offers "cost-free" legal help to distressed car owners. Once sold, a lemon can reenter the market, but usually with a branded title.

Rebuilt/Reconstructed/Rebuildable: This branded title identifies that a salvage vehicle has been repaired and is ready for the road. The vehicle has typically been rebuilt with new or used parts. Every part is recorded, and the entire rebuilding (or reconstruction) process is documented by affidavit. Such cars may be found at a low price and safe to drive, but may be difficult to resell.

Recall: A recall happens when a mass defect affects many or most of a specific model of automobile. Generally, the vehicle manufacturer will fix the error for free at a dealership within a certain period of time.

Rolled Back Odometer: The increased miles on an auto the less it is valued. Therefore, there are some people that alter the correct mileage reading by reducing (or mechanically rolling back) the numbers.

Salvage Vehicle: This type of vehicle has been either "totaled" by an insurance company due to flood damage or accident, but can be repaired to a "rebuilt" state, or it is ready for scrap. Unless it carries the "rebuilt" brand, it has not been properly repaired for use on the road.

Vehicle History Report (VHR): Using a car's Vehicle Identification Number (VIN) companies mine data from a wide array of public and private sources to report how many times a car has been bought and sold, involved in accidents, and so on. A VHR report typically includes information on a vehicle's registration and title as well.

Vehicle Identification Number (VIN): This 17-digit code is unique to a vehicle. Every car sold in the U.S. since 1981 must bear a VIN. Sometimes referred to as the "very important number," this is the key information used in a Vehicle History Report to search an automobile's past. It can be found on the etched into the driver-side door frame or driver-side dashboard. Learn which is the wiser buy on the next page.