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Question: 1 / 400

What is a "clean title"?

A title with no outstanding debts on the vehicle

A title that means the vehicle has no liens or holds and has not been declared salvaged

A "clean title" refers to the status of a vehicle's title indicating that there are no outstanding liens, holds, or claims against the vehicle, and it has not been declared salvaged. This term is crucial for buyers and sellers in the used vehicle market, as it ensures that the vehicle is free from any legal encumbrances that could affect ownership or value. A clean title signifies that the vehicle's history is free from severe issues, such as being totaled or subject to significant repairs that could have compromised its integrity.

While a title without outstanding debts contributes to the perception of a clean title, the main factor is the absence of any liens or the salvaged designation. Other options, like issuing titles for new vehicles or electronic filing, do not pertain directly to the definition of a clean title and therefore do not accurately describe its meaning in the context of motor vehicle ownership.

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A title issued only for new vehicles

A title that has been electronically filed

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