Financing Branded Title Vehicles: A Smart Choice for Buyers and Banks

When it comes to purchasing a vehicle, buyers are often faced with the dilemma of balancing cost and reliability. One option that is rapidly gaining traction in the U.S. used car market, is the purchase of branded title vehicles. While these cars come with a history of previous minor damage, they also present a unique set of advantages that make them an attractive option for both buyers and lenders. In this article, long-time automotive enthusiast Troy Dunn, reveals the top 4 reasons why financing branded title vehicles is a sound investment and a safe choice for banks.

1. Comprehensive Vehicle History Reports

One of the primary concerns when buying a used car is its history. Few risks are greater than buying a used car from a private seller, due to the lack of verifiable vehicle history. This drives more sophisticated used car buyers to only pursue branded title vehicles. A branded title vehicle stands out because they often come with the most comprehensive vehicle history reports available anywhere else. These reports provide detailed information about past damage and repairs, offering transparency that is often lacking in other used car purchases. This level of insight allows both buyers and lenders to make informed decisions, reducing the risk associated with an automotive purchase.

2. Reduced Purchase Price / Monthly Payments, & Lower Depreciation Cost

Branded title vehicles are typically sold at a significantly reduced price compared to their clean title counterparts. This price reduction translates to a lower initial investment for buyers and a lower principal amount for loans. This reduced purchase price also gives buyers more manageable monthly payments, making the vehicle more affordable from a cashflow perspective. For lenders, this means that the loan is less likely to become underwater, where the car’s value falls below the outstanding loan balance. Lower depreciation rates enhance loan stability, making these vehicles a more secure option for financing.

3. Comprehensive Warranty Further reduces Risk

Purchasing a branded title vehicle from reputable dealers such as AutoSavvy comes with additional perks, such as a free comprehensive warranty. This warranty covers a range of potential issues, providing buyers with peace of mind and further reducing the risk for lenders. Knowing that the vehicle is protected by a warranty assures banks that the asset underlying the loan is safeguarded against major defects, enhancing the loan’s security.

4. Proven Track Record of AutoSavvy

AutoSavvy has a long-standing reputation with nearly a hundred thousand satisfied buyers. This track record demonstrates the reliability and customer satisfaction associated with their branded title vehicles. For banks, this history of success means partnering with a dealer that has consistently delivered quality and value to its customers. The safety in numbers and the confidence derived from such a successful track record make financing these vehicles a much lower-risk proposition than most other used vehicles.

Additional Reasons for Banks to Offer Financing

Beyond the outlined benefits, there are other compelling reasons for banks to consider financing branded title vehicles:

Market Demand:

There is a growing market for “affordable” used cars. Branded title vehicles meet this demand by offering quality at a reduced price, attracting a wide range of buyers. Banks can tap into this market, expanding their loan portfolios with relatively low-risk, high-demand assets.

Regulatory Compliance and Standards:

Dealers like AutoSavvy ensure that their vehicles meet rigorous standards before being sold. This compliance with safety and quality standards reassures lenders that the vehicles they are financing are reliable and meet industry benchmarks.

Bottom Line

The bottom line is that financing branded title vehicles presents a win-win situation for both buyers and banks. Buyers benefit from lower prices, comprehensive warranties, and detailed vehicle histories, while banks gain from stable loans, historical success data, and a satisfied customer base. With reputable dealers like AutoSavvy leading the charge, branded title vehicles are proving to be a very viable and attractive option in the used car market.