A car with a clean title means that it hasn’t been damaged beyond repair or stolen, nor does it have money owed on it.  If you want to buy a clean title car, your best bet is to go through a clean title cars auction.  Here are some points to be aware of:

Run a Vehicle History Report (VHR) – You can write down the VIN and look up the car’s history online, or you can pay a reporting agency to do a background investigation.  This will reveal problems like a suspicious title, faulty odometer settings, flood damage, accident history, etc.  Be aware that cars built before 1981 might not have a sufficient VIN for running a VHR.

Find a reputable mechanic – You’ll need a professional to examine the car and confirm that it’s a clean title rebuildable car.  Some things are simple to check:  do the tires match, is the battery good, do the headlights work, etc.  A more thorough examination will reveal serious body damage.

Verify the paperwork – The three most important items are:

• A Bill of Sale or other documents showing the purchase price of the vehicle, signed by both buyer and seller.
• The Certificate of Title, signed in the proper place by the seller, with the correct odometer reading entered on the title certificate.
• If there is a lien showing on the title and it is not stamped "paid" and signed by the loan company, do not pay for the car until the release can be proven.