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.
- Valid identification/driver’s license
- Your vehicle/car
- Your title to this car – lien-free
- You’ll likely be offered 45% of the “rough value” indicated at https://www.nadaguides.com/
- 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.”
