I'm going to go with it means the car is literally "Junk"
I didn't think junk titled cars could be driven on the road or rebuilt. I know if a car gets a certificate of destruction it can NEVER be re-titled. I thought junk titles were similar.
Carfax has a good definition
Junk Title —
A Junk Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle exceeds ~ 75% of its pre-damage value. This damage threshold may vary by state. The majority of states use this title to indicate that a vehicle is not road worthy and cannot be titled again. Some states treat Junk titles the same as Salvage.
alot of times if a vehicle has a junk title, or salvage title as it is called here in Virginia, only a certified person is able to purchase them. IE: My g/f step dad has a Salvage Rebuilders License.
He can go out and buy a salvaged titled vehicle, repair it, and resell it. however, it has to be approved by a DOT (department of transportation) agent whose job is specifically to ensure that those vehicles are safe. On the same not, an average person, can not sell or obtain a salvaged vehicle here in Virginia for use as driving on public roads etc etc. Most salvage/junk title vehicles will wind up in either a junkyard, CoPart, or a similar salvage yard. These places allow people with proper licensing to obtain the vehicles to repair and resell.