Westlake Financial Services is now financing refurbished vehicles with branded titles in 48 states, according to a company release. Vehicles with branded titles include flood, hail and water damage, in addition to salvage, junk, lemon, and crash test vehicles.

The short-term goal with this new financing option is to expand the Los Angeles-based lender’s dealer base, Pamella Teixeira, senior risk analyst at Westlake, told Auto Finance News. The program also should help Westlake further position itself as a full-spectrum financier.

The move doesn’t come without inherent risks. “[The risk] is higher in the sense of how much money we can lose on that loan,” Teixeira said, adding that consumer payment issues are more likely to pop up on vehicles that have a history, such as branded vehicles.

While it doesn’t have a specific separate set of lending standards when financing branded vehicles, Westlake has tightened up its loan-to-value requirements for this segment. “We use five different sets of data that helps us make a decision as to how to adjust the program,” Teixeira said.

Meanwhile, Westlake still is conducting research as to whether it will allow ancillary products to be attached to loans financing branded vehicles. “Right now, its restricted,” Teixeira said.

Westlake piloted the program in Arizona, New Mexico, Nevada, and Utah before rolling it out in 48 states, David Goff, vice president of marketing, told AFN. The program will not be available in New York or Massachusetts due to state regulatory requirements.

In its research, Westlake didn’t find many “larger lenders” that were active in this space, Goff said, adding that some credit unions finance branded vehicles under specific programs that are highly risk-averse.