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…
