Understanding the rhythms of demand—when needs spike and when they settle, can mean the difference between missed opportunities and maximized profits.
The table below captures the seasonality of subprime borrower transactions, revealing the patterns that drive their financial behavior.
Armed with these insights, subprime lenders can anticipate demand, tailor their offerings, and stay one step ahead in meeting the needs of their customers at just the right moment.
Trans Union Data
Every great business decision starts with clarity.
In the world of subprime lending, where challenges and opportunities collide, understanding the landscape is the key to thriving.
The table below distills essential insights and actionable strategies, offering a clear path for lenders who serve credit-challenged consumers.
Whether navigating rising delinquencies, regulatory constraints, or shifting borrower behavior, this analysis equips you with the tools to turn obstacles into opportunities and ensure profitability in a competitive market.
Subprime Lending: Insights and Strategies for Profitable Growth
Subprime Lending Analysis
Category
Observations/Analysis
Strategies for Subprime Lenders
Delinquency Trends
60+ DPDs increased for UPLs for the 4th consecutive month. Bankcard 90+ DPDs are flat, but balances increased (+0.6% MoM).
Implement real-time borrower analytics to detect early warning signs of default. Adjust underwriting criteria seasonally.
Types of Loans Popular Among Credit-Challenged Consumers
Types of Loans Popular Among Credit-Challenged Consumers
Loan Type
Description
Potential Seasonality
Personal loans for bad credit
Offered by online lenders specifically for borrowers with low credit scores.
Demand will increase during periods of economic uncertainty or when consumers face unexpected expenses.
Family loans
Borrowing from family members or friends.
More prevalent during times of financial hardship, such as job loss or medical emergencies.
Buy now, pay later loans
Short-term financing options that allow consumers to make purchases and pay for them in installments.
Most popular during the holiday season and other periods of increased consumer spending.
Cash advance apps
Mobile apps that provide small cash advances, often with fewer fees than payday loans. See Dave.com
Demand is consistent throughout the year, with spikes during emergencies or unexpected expenses.
Payday loans
Short-term, high-interest loans due on the borrower's next payday, with a loan length of two to four weeks.
Usage increases during periods of financial strain or when consumers have limited access to other credit options.
Credit builder loans
Designed to help improve credit scores for those with no or limited credit history.
Demand is steady throughout the year, as consumers seek to establish or rebuild their credit.
Debt consolidation loans
Used to combine multiple debts into one loan with a potentially lower interest rate.
Demand increases during tax refund season or when consumers experience a change in financial circumstances.
Car title loans
A type of secured loan where borrowers use their vehicle title as collateral. See AutomobilePawn.com
Demand is higher during periods of economic hardship or when consumers need quick access to cash.
Installment loans
Loans that are repaid over a set period of time with fixed payments.
Demand influenced by factors such as interest rates, loan terms, and consumer confidence.
Subprime Lending Analysis and Strategies
Key Takeaways from the Data:
Subprime Consumer Statistics and Impact:
Over 50% of U.S. households live paycheck-to-paycheck, and about 40% of households earning $100,000 or more do so.
Nearly one in three U.S. adults are subprime borrowers (credit scores under 620), with 40% unable to access $400 in an emergency.
Bankruptcy filings have risen consistently for 19 months, driven by high credit card defaults, inflation, and aggressive debt collection tactics.
In Illinois, a 36% APR cap resulted in a 44% reduction in loans to subprime borrowers, with consumers turning to illegal or informal sources for credit.
Economic and Policy Context:
Regulatory measures like the Military Lending Act’s 36% cap have unintentionally created “credit deserts,” where consumers lose access to vital credit products.
High inflation and increased cost of living have amplified consumer financial stress, increasing demand for small-dollar, short-term loans.
Impact on Subprime Lenders:
The growing demand for emergency small-dollar loans represents an opportunity for subprime lenders but is constrained by regulatory restrictions, such as APR caps and increasing borrower defaults.
The seasonality of lending demand, particularly around tax refunds and year-end obligations, presents a critical period for maximizing revenue.
Stricter regulations reduce profitability by increasing compliance costs and limiting flexibility in pricing loans.
Strategies for Ensuring Profitability for Subprime Lenders:
Regulatory Navigation:
Employ legal models such as sovereign nation partnerships or multi-state compliance strategies to operate in restrictive environments.
Maintain a robust compliance framework to preemptively address new legislative challenges.
Diversified Loan Products:
Offer a range of loans (installment, payday, car title, and lines of credit) to cater to different consumer needs and mitigate revenue impacts from single product restrictions.
Explore alternative models like installment loans, which spread repayment over time and reduce delinquency rates.
Seasonal Marketing Campaigns:
Focus marketing efforts during peak periods, such as tax season, when consumer liquidity is strained.
Provide promotional loan products tied to tax refund advances or holiday financial pressures.
Risk Mitigation and Underwriting:
Use advanced underwriting tools (e.g., AI-driven scoring, bank account verification) to reduce default risks.
Implement conservative lending criteria while maintaining accessibility for subprime consumers.
Technology and Digital Channels:
Develop mobile-friendly lending platforms to capture the growing digital consumer base and streamline loan processes.
Utilize SMS, email, and social media marketing for higher customer engagement and loan application rates.
Get your GBP – Google Business Profile setup and functional in order to adverstise via Google without concern for the 36% APR caps!
Customer-Centric Approach:
Focus on treating borrowers with respect and providing financial literacy resources to improve repayment rates and customer loyalty.
Provide flexible repayment plans to retain borrowers facing temporary financial setbacks.
Cost Efficiency:
Automate back-office operations and adopt off-the-shelf loan management software to minimize operating costs.
Optimize collection processes through centralized tools and predictive analytics to maximize recoveries.
Partnerships and Alliances:
Collaborate with fintech firms to leverage technology and scale operations efficiently.
Join industry associations to stay updated on legislative developments and gain access to shared resources.
By implementing these strategies, subprime lenders can navigate regulatory challenges and maximize profitability while meeting the needs of credit-challenged consumers.
Why Subprime Lending Isn’t the Villain You Think It Is
Lend money to subprime consumers who need quick access to cash but lack traditional credit options.
With car titles as collateral, you can offer life-saving loans for emergencies like car repairs or medical bills, while ensuring your investments are secured.
It’s a win-win opportunity: help consumers avoid NSF fees, keep their jobs, fill a prescription… while simultaneously generating significant profits with high APR loans to offset your risk.
Ready to capitalize on this lucrative market?
Discover the ultimate guide!
Invest in our 500+ page eBook, packed with step-by-step instructions to start and grow your title loan, payday loan, installment loan business. Don’t miss out!
Need to be mobile to respond to emergencies, and a vehicle issue could prevent them from earning.
Low-Income Parents (Struggling to Commute for Work/Childcare)
Need their cars to juggle work, daycare, and school but often lack emergency savings for repairs.
Weekend or Part-Time Workers (Second Job Workers)
Use their vehicles for additional income and may not have sufficient savings if their car breaks down.
Temp Workers or Laborers (Short-Term Contracts)
Often rely on personal vehicles to commute to job sites, which can be scattered or far from home.
Conclusion:
This exhaustive list vividly illustrates the diverse range of subprime consumers who rely on their vehicles to maintain their livelihoods.
They often face sudden financial challenges that prevent them from repairing their vehicles.
Our detractors? Our overlords who believe they know how best to solve our financial challenges? I suggest they follow President Trump’s lead. Work the counter for a day! Perhaps french fry burns will enlighten them!
Questions? Need help? Introductions to 3rd-party vendors who will enable you to transform your loan business? Reach out to Jer at: TrihouseConsulting@gmail.com
Car title loans are in demand by all demographics. I loaned $70K on a $300K motor home. I’ve loaned $40K+ on Lambos and Bentleys. And I’ve loaned $1000 to a small contractors who need to make payroll before completing a job. Customers run the gamut.
Yes, car title loans are considered expensive! Yes, they are usually a last resort. On the other hand, they offer access to fast, EZ, access to cash to solve a short-term financial challenge.
THEY ARE NOT FOR EVERYONE. We will repo your vehicle, However, IF you communicate with us we will do everything possible to avoid this. WE DO NOT WANT YOUR VEHICLE! We simply want our loan principal and fees appropriate for the risk we assume.
My best customers are small business entrepreneurs. They need cash for supplies, payroll, parts… APR’s are all over the map. I’ve done thousands of $500 loans for 30 days. The fee is $20/$100. So, my borrower receives $500 and 30 days later pays me $600. No big deal IF they pay as agreed.
The author is correct! Customer acquisition costs for a de novo car title loan lender are brutal. However, a seasoned car title loan store can compute life-time value approximately $3800; add to this family & friends. [Secret: Pay referrals a “spiff” of $75!]
“The business of lending to the masses” can be lucrative but it certainly is not EZ. A huge development today is the ability to initiate and fund car title loans via the Internet. The industry has developed several fabulous platforms for eliminating the need for face-to-face transactions! This is a game changer! Get a license in one city and serve your entire State! No need to rely on customers who live within a 20-20 mile radius!
If you want to learn more, I always recommend the Author’s tip; look around you. Do they already exist? Yes? Then you know they are legal and can be VERY profitable. Next step? Get one; get a car title loan. Get copies of everything! Go through the process. Strike up a conversation with the store CSR. Reverse engineer! Next, reach out to me. Jer Trihouse Let’s explore…
Often, it’s the simple things that work well and yet we overlook them.
I received an update from TurnKey Lender & it sparked an idea for our car title loan portfolios.
Why not focus on car repair companies to acquire customers for car title loan Lenders? Transmission shops, tire shops, radiator repair… Do the “Enterprise Rent-a-Car thing” and bring donuts!
If you’re a brick-n-mortar, simply have one of your CSR’s spend a few hours every week canvassing your local auto repair service centers. Additionally, have your CSR gather business cards, phone numbers, email address, key employee titles & names… Enter them into an Excel spreadsheet at a minimum. Lacking the skillset/time, hire someone on Fiverr.com to perform this task for you, You won’t spend more than $20!
PS: Although Google “hates” >36% APR loan products, you CAN get your location to appear in Google My Business Listings. Add plenty of pictures, get reviews [Refer to our Manual for tips & tricks to secure reviews and improve your listing.]
Check out these search results for 92663 Car Title Loan within Google.com:
Car Title Loan Locations in 92663 Zip Code
Slowly, build an outbound campaign for future marketing campaigns.
Offer $50+ cash to the car repair employees for every funded car title loan. CASH PAID IMMEDIATELY. Have the employee come to your location to pickup the $$$. [This way, they know you & may even use your services themselves one day.]
If you offer car title loans Online, even better! Buy lists from lead providers for automobile service centers in the geographic area you’re targeting. [Refer to our Manual for List Brokers.]
Remember from studying the statistics in our Manual that the lifetime value of one car title loan customer can exceed $10,000?
That’s all for now. As you likely know, I’ve spent the past 7 weeks on a Fintech Project in Paris. So, I’ll report back to you on the results in a few weeks. Au Revoir, Jer and Team Trihouse Consulting.
<36%: Do you want to remain in business? We offer a turnkey program that will enable you to start/continue offering <36% APR title loans while maintaining a 200%+ ROI on your portfolio.
These solutions for continuing to offer <36% APR collateralized loan products “work” in all states!
1 in 3 Californians Struggle!
Nearly 1 in 3 Californians have a subprime credit score or no credit score at all,6 meaning they likely struggle to access credit through a traditional bank or credit union. Here’s the New York Fed Study: Click
We have 2 Solutions to choose for all States:
Offer CPI: “Collateral Protection Insurance” coverage to your title loan/collateralized borrowers. OR Collaborate with a federally recognized Native American Indian tribe. LeaningRockFinance.com ] #consultingservices #ab539 #tribelending #smalldollarloans
California AB539: The law became effective January, 1st, 2020. California Department of Business Oversight Law: Click Here CDBO
Solutions for <36% APR Lenders
We’ve reviewed hundreds of existing California CFL consumer contracts. The majority already reference the forced-placement of collateral protection insurance to protect the lienholder from a catastrophic loss.
If your contracts do not already have this language, allow our 25-year experienced Team to provide your contract language free of charge.
Additionally, we offer a 100% turnkey package enabling your title loan company – in any State – to offer <36% APR collateralized loan products while still earning superior ROI on your business investment.
Additionally, if your offering consumer personal loans at ANY APR, we provide collaborations with Native American Indian tribes. This “works” just like the “bank model.” Visit LeaningRockFinance.com for an introduction.
Opening a car title loan business in Alabama is easy, and can be very profitable. Alabama has specific licensing, regulatory and compliance statutes in place. You can access all the Alabama car title loan, pawn, small-dollar loan and payday loan license applications here: Alabama Department of Financial Institutions.
FAQ’s [Alabama Frequently Asked Questions] for entrepreneurs interested in launching or buying a small-dollar loan company are available there as well. Regarding payday loans in Alabama, there is a statewide database.
If you have invested in our “bible:” How to Loan Money to the Masses Profitably, you know that we advise readers of our course to study our Course carefully and then actually get a loan yourself.
How to Start a Consumer Loan Business.
Here’s some interesting commentary from JD Supra regarding maintaining secured creditor rights in regards to Alabama car title loans & pawn.
Secured creditors must be ever mindful of their rights in consumer bankruptcy cases. Details that might seem technical or insignificant can mean the difference between a creditor’s obligation being secured and being unsecured, having a claim denied or having collateral released from the bankruptcy estate into the hands of the creditor, allowing the creditor to mitigate its financial loss.
In a recent case from the U.S. Bankruptcy Court for the Middle District of Alabama, a secured creditor was able to protect its interest in collateral in two bankruptcy cases where its title pawn transaction customers failed to redeem their pledged vehicles during the required time period. As a result, the secured creditor was able to obtain relief from the automatic stay and exercise rights against the collateral, resulting in a better financial result for the creditor.
As always, the technical details were important to the end result for the creditor. Donna Thompson and Kisha Daniel entered into title pawn transactions and several renewals with TitleMax of Alabama, Inc. Each customer provided TitleMax with the certificate of title to her vehicle, and those certificates of title identified TitleMax as the first and only lienholder.
Each customer then filed for protection under Chapter 13 of the U.S. Bankruptcy Code and declared her intention to repay TitleMax through her Chapter 13 plan. TitleMax objected to confirmation of both Chapter 13 plans and asked the court to grant it relief from the automatic stay with respect to both debtors’ vehicles, claiming that the vehicles were not the property of the debtors’ bankruptcy estates and were not subject to the automatic stay. TitleMax argued that the debtors failed to redeem their vehicles within the time period allowed under Alabama law and the Bankruptcy Code and that the court should grant TitleMax relief from the automatic stay with respect to both vehicles.
The debtors argued, among other things, that their transactions… the Pawnshop Act… Read more below,
Car title loan lenders get a bad rap from the majority of society because most people are unable to put themselves in their “brother’s shoes.”
Here is an example of a real-world car title loan lender who enables average folks who need a car in order to get to work, pick up their kids…
Setting the scene
Every weekday around 6 a.m. Don Hankey, 76, arrives by chauffeured car at his office near Hancock Park. Hankey started in the auto business nearly 50 years ago, when he took over his father’s car dealership at Vermont and Beverly. That business eventually grew into The Hankey Group, a collection of seven mostly car-related companies: Insurance, rentals, technology, but also real estate. The real moneymaker of the group, however, is Westlake Financial Services, a huge subprime auto lender that does business throughout the U.S., Mexico, India and the Philippines.
On a recent morning at 7 a.m., the company had already approved 286 deals. By the end of the day, Hankey said, he expected that number to hit 20,000. Interest rates for these loans can reach as high as 30% (versus the national average rate of about 4% on a 60-month loan). “We try not to say no,” said Hankey. “We just try to make it impossible to buy the deal,” either through high-interest rates or demanding more money down.
On accusations of predatory lending:
“Let’s say you have somebody with bad credit, so they either have to pay 18% interest or not get a car at all. Are we better off just not giving them a car? I think they need a car. Maybe it provides a job for them that they wouldn’t otherwise have. There’s good and there’s bad to it, but I think that I think the good [out]weighs the bad.”
On the origins of the subprime auto lending boom:
“You know, people say they’re going to pay their house payment first. And then a funny thing happened in 2008, 2009 [during the mortgage meltdown] … Many people let their house go, but they needed that car, and they couldn’t go to work without the car. They left their house…and kept their car payments current.”
That means Hankey, and other lenders can make money two ways: From their borrowers paying back those high-interest loans, and by selling those loans off to Wall Street, where demand increased post-recession.
“People buy that credit. They were very concerned during the Great Recession that these things would default. But what happened is that almost all of them got paid in full, and you saw the defaults on real estate. People go out of their way to hold onto their car in a bad period of time.”
As long as people need cars to get to work, Hankey says, he’s not worried about a massive wave of defaults like what happened in the housing market a decade ago.
By: Jer Ayles. Are you a California Lender operating per the CFL licensing model? Ready to throw in the towel, sell off your portfolio, collaborate with a federally recognized Native American Indian tribe, layoff your employees, tell the average Joe’s and Jills you simply can no longer serve them when they face a sudden financial emergency… Are you going to give up the business of lending money to the masses?
WHAT: California AB539 bans loans between $2500 and $10,000 with APR’s exceeding 36%. It became effective January 1st, 2020. This is huge. But, there are two fixes for this IF you choose to start or continue to loan money to the nearly 50% of Californians unable to access $400 cash in an emergency!
WHY: A $100 loan for 12 months yields the Lender $36.00 PER YEAR! Lenders cannot pay to acquire customers, pay their rent, pay their employees, process loan applications, spend capital on radio, TV, direct marketing, Google, Facebook, Instagram… process the loan applications [production costs] they secure via all these efforts… And then attempt to collect their hard-earned money by reaching out to customers by phone, text, letters…
RESULT: California loans of less than $4,000 = $5,000+ WILL NO LONGER BE OFFERED to consumers with “shitty credit.”
That’s life!
Consumers with poor credit, thin files, maxed credit cards, friends and families in the same boat, communities of color, low wage earners, Latino owned businesses, even the President of the NAACP said his constituents… “cannot qualify for a short term small-dollar loan ANYWHERE in California!” [Except perhaps from an illegal, unlicensed loan shark, by pawning the stuff in your garage, knock you over the head while you dodge the needles and excrement in the streets of your city, outrun the tent cites along your bicycle trails…
BANKS and CREDIT UNIONS [CU’s do are non-profits and do not pay taxes by the way] DO NOT WANT TO SERVE THESE BORROWERS! “It’s expensive, a hassle, and they do not pay back their loans in a timely fashion,” said a banker at Lend360!
Where are these ordinary Americans supposed to get their hands on $400 FAST to keep on the lights, pay for their kid’s prescription, fix the car so they can participate in the gig economy, or serve you your Big Mac?
READ ON! This may be a long read BUT it will save your business, your investment, your employees, your customers, your landlord, and your life’s work and contribute to the tax base enabling our elected officials to continue to abuse all Americans!!
Are you aware that the “big boys” sponsored AB539? They spent huge sums of $$$ on PACs and politicians in California to make certain all of us “little guys” cannot compete? Do you know that this 36% APR cap calculation does not include ancillary fees such as non-refundable loan origination fees, credit insurance [that only subsidizes the Lender and consumers must pay again each time their loan is renewed], club memberships, life insurance, accident, health, and disability insurance, involuntary unemployment insurance, property insurance, “nonfiling” fees, accidental death & dismemberment insurance, automobile security plans… MY Point? THE ALL IN APR – annual percentage rate – our sub-prime borrowers pay is HIGHER than the stated APR on their loan contract.
Why? They implement a “loan packing” strategy. They add on all the “ancillary” products I mention here; none of which benefit the borrower!
Example? “Credit insurance premiums” are paid ALL UPFRONT! Credit insurance increases the cost of consumer borrowing by 33% while providing ZIP benefits for consumers. And again, these fees are NOT included in APR calculations!
THE REAL WORLD: A stated APR for a nine-month loan, $511 is 43% but the “ALL-IN APR” is 138%! Why? How? Because the so-called “big boy” PAC & politician enabled installment lender charges “credit insurance” with this loan and finances the lump-sum premium payment – $203. Thus, the amount financed increases from $511 to $714 and results in a 138% APR!
Do you know 10M+ US residents take out loans ranging from $100 – $10,000 and pay more than $10 Billion dollars in fees?
Do you know that banks and credit unions make the majority of their profits on NSF fees? They hate small-dollar lenders; unless of course they can provide $300M credit lines to the very lenders who sponsored AB539!
It’s CRIMINAL!
Smaller loans <$2500 MUST HAVE higher APR’s The operating costs for a Lender serving the sub-prime are simply TOO high. The fixed costs for a $500 loan are the same as for a $2500 loan! Upfront and customer acquisition costs are a much smaller share of the revenue from a $2500 loan vs a $500 loan.
California AB539: 36% APR Rate Cap = Devastation = Disruption = Opportunity
By now, the thousands of you who follow my rantings know that the Calif. Department of Business Oversight has begun enforcing the 36% APR rate cap [AB-539] on consumer loans between $2500 > $10,000. This bill impacts both title loans and personal, noncollateralized loans.
What’s this mean? 70% – 80%+ of the Lenders serving California consumers today will STOP funding these loans. 20 million consumers facing temporary financial hardships will have nowhere to turn to for a no-hassle, small-dollar loan FAST! 70% to 80%+ of California Lenders are shutting their doors, laying off their employees, shunning their landlord, not paying taxes… and wishing their thin-file, no file gig economy customers “SO LONG!”
DEVASTATION
Jorge Jones has a landscaping job in Los Angeles. His wife Francis works at a restaurant. Auntie, who lives 14 miles [a rent-controlled one-bedroom apt.] and 4 bus routes away, takes care of the Jones’ two kids.
Jorge’s 12-year-old Toyota pickup needs engine work. The bank turned Jorge down for a loan. Jorge’s credit card is maxed. He’s already borrowed from friends and family in the past; owes them money.
Mary, single with a 3-year old daughter, works for 2nd Chance Community Loans, a chain of 15 small-dollar loan stores in So. Calif. She knows the 1st names of all her customers, their kids’ names, their family situation… Her customers borrow money a few times per year when the washing machine breaks down, the oven takes a dive, the family car needs work…
They all live paycheck to paycheck; virtually no savings in spite of having tried. Life happens…
Carlos owns 3 strip malls. One each in Garden Grove, Santa Ana & Costa Mesa. He’s 55 years old. Worked his ass off as a carpenter, saved money, read real estate books, invested with a buddy in a run-down strip mall, refurbished it and eventually added two more. Each strip mall has the usual mix of Circle-K, a couple of restaurants, dry cleaner, a 2nd Chance Community Loan franchise…
Carlos just received “The Letter.” 2nd Chance community Loans is pulling out of California…
The Costs for Producing a 36% APR Loan
So what you say, dear reader? A $2500 loan at 36% interest is ridiculous anyway! “Good riddance to these loan sharks!”
OPPORTUNITY
My Team has invested hundreds of man-hours researching, talking and meeting with savants in “the business of lending money to the masses.” It’s been a whirlwind of action and creativity. The results? Success.
We have solutions [ancillary products, tribal collaborations, automation and fraud reduction strategies, lower CAC and FTPD metrics… for you that offer safe and profitable solutions for you to continue to serve your California communities with emergency funds! Reach out to TrihouseConsulting@gmail.com ASAP for details. We’ve invested the past 6 months evaluating and preparing for January 1st and AB539! We have assembled a Team…
Email Jer at TrihouseConsulting@gmail.com! Include details! Are you a CFL? What type[s] of loan products do you offer? Are you a storefront or internet Lender? Ballpark, how many loans/month? Average term? Avg. loan principal. Installment? Balloon? Additional “color” will move you to the front of the line… We’ll send you an MNDA and share the solutions available for your specific situation!
[Again: want to explore the tribe sovereign nation model? Click Here: https://LeaningRockFinance.com DISCREET is the word.]
PS: If you plan to simply “throw in the towel, to give up… let us know! We are buyers! We are happy to take your California Market share and SCALE big time. The regulators and paid-off politicians can make the business of lending to the masses more difficult BUT they cannot regulate DEMAND away. Demand for loans by credit-challenged consumers is going nowhere but UP! We want your data, your portfolios, your IP, your websites..!
You too can “play” like the big boys! It just takes creativity, iteration, knowledge, and a little help!
Collateralized [Title] Lenders: Don’t abandon California consumers and your employees in need of your help! If you’re a title loan lender, you can remain in business by submitting to this crazy 36% APR while offering “Lender Collateral Protection” to your customers in dire need of your help while still earning a very respectable ROI. And, since the majority of your competitors are not reading this, YOU CAN EASILY SCALE and TAKE MARKET SHARE! A 25-year-old, Triple A-rated insurance company executive Team has a complete turn-key solution ready for you to implement in <30 days! Your out of pocket start-up costs to get up and running? MINIMAL!
Non-Collateralized [Personal Loan/Installment] Lenders: I have another proven strategy for you as well.
Want to start a car title loan business? Here are a few tips.
Visit a car title loan company and get a title loan! Yes, step one is to actually go through the loan process as a real car title loan customer would. The best way to learn the “behind the scenes” process is to get in your car and go get a title loan. Borrow the minimum amount your future competitor will loan you on your car title.
3 to 4 days later, go back into the car title loan store and pay off this loan. Again, go through the process.
Depending on your state, these steps will likely cost you $200 – $400. The information you gain by actually going through the car title loan procedures and the process is invaluable. Consider these fees the cost of your education.
Get copies of EVERYTHING during the loan process. Take notes the moment you leave the car title loan store. Take pictures with your phone. Take pictures of the disclosures on the walls, the interior, and exterior signage, the point-of-sale materials… EVERYTHING possible.
Be smart. First, just visit several stores. Inquire about their car title loan product. Ask the customer service representative (CSR) about their requirements. If you luck out, you may even be able to engage the CSR in lengthy conversations about the business! Talk it up!
Eventually, you’ll need the following documents to actually get a loan from your “target” future title loan competitor.
Proof of residency. Bring a utility bill, lease, rent statement.
Proof of your last payday. Check stub, bank statement…
Miliary exemption? The car title lender will run a check on you.
Vehicle Evaluation Checklist: The car title lender will review the condition of the car you are offering them for your “research project” car.
That’s all. Now, go back to your office, Starbucks… and write down ALL your observations. How were you greeted? Treated? What was the process? document everything!
Again, three or 4 days later, go back to this car title loan lender and pay off your title loan. Once more, DOCUMENT EVERYTHING! Get copies of EVERYTHING.
Lastly, get our bible: “How to Lend Money to the Masses.” In it, we thoroughly discuss the strategies and tactics, licensing, marketing, websites, store & online lending model… CLICK HERE for the ‘Table of Contents.”
Click the IMAGE to read the “Table of Contents” and learn how to Start a Title Loan Business
