<\/span><\/h2>\n![\"used](\"https:\/\/cartreatments.com\/wp-content\/uploads\/used-car-for-sale.jpg\")
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Purchasing a vehicle with a branded title should be considered a roll of the dice. Though a branded title discloses the form of damage that a vehicle has sustained, it does not provide a detailed account of the damage\u2019s severity. This leaves consumers with a multitude of unanswered questions.<\/p>\n
For example, a used vehicle with a relatively low pre-wreck value, can suffer only modest damage and still be deemed a total loss. If a vehicle were to be valued at only $2,000, yet require more than 1,500 dollars worth of parts and labor for repair, a salvage title would likely be issued. In such instances, much of the damage sustained could have been purely superficial in nature. <\/p>\n
On the other hand, if a late-model vehicle were to be deemed a total loss, requiring $10,000-$15,000 for repair, it would stand to reason that such damage was far more extensive in scope. Therefore, a salvage title does not always clearly illustrate the extent of damage that has been suffered.<\/p>\n
Likewise, a water-damaged title does little to indicate the severity of damage that a vehicle has sustained. Many water-damaged titles originate in areas where hurricanes have made landfall, and flooding has been widespread.<\/p>\n
However, by policy, many insurance companies total the bulk of vehicles located in a flood zone following a hurricane, rather than inspecting each car within the area. <\/p>\n
As a result of this practice, some vehicles carrying a water-damaged title have suffered very little in the way of actual flood damage. In many instances, such vehicles will have been exposed to no more than a few inches of flood water, while others might have been completely submerged. <\/p>\n
One is best to only purchase a vehicle with a branded title if they are personally aware of the vehicle\u2019s back story. In these instances, a consumer is able to make an informed buying decision, free of the unanswered questions that typically accompany a branded title.<\/p>\n
<\/span>Does a Branded Title Affect Insurance?<\/span><\/h2>\n![\"salvage](\"https:\/\/cartreatments.com\/wp-content\/uploads\/salvage-title-vs-rebuilt-title.jpg\")
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Full-coverage insurance is seldom offered for vehicles that carry a branded title, though the specifics of this matter tend to differ from one insurance provider to the next. However, most vehicles that carry a title indicative of road-worthiness (rebuilt, remanufactured, etc.) can still be covered by a general liability policy. <\/p>\n
Vehicles carrying a salvage title cannot be insured, due to the fact that they have been deemed a total loss. As a result, such vehicles are not intended to be legally operated on any city, county, state, or federally-managed roadway, in their current state.<\/p>\n
Following adequate repair and proper inspection, most vehicles carrying a salvage title can be awarded a rebuilt title, making them eligible for liability coverage.<\/p>\n
<\/span>Will Banks Finance a Branded Title?<\/span><\/h2>\nMany banks will not provide financial backing for the purpose of purchasing a vehicle with a branded title. This is due to the many unknowns that surround a vehicle of this status.<\/p>\n
Banks attempt to protect their investments, by only loaning money on purchases worthy of the initial loan amount. <\/p>\n
Some banks in particular areas of the country will still finance the purchase of vehicles with branded titles if a buyer meets all additional criteria and is capable of satisfying the terms of the loan. However, many loans of this nature carry higher than standard interest rates, in order to leverage a bank\u2019s position in such dealings.<\/p>\n
Additionally, there are a number of third-party lenders dedicated to financing purchases of this type. Again, many of these loan agencies charge higher than average interest rates to satisfy the terms of such transactions.<\/p>\n