The Top 15 Vehicles for Car Title Loans: 

Insights for Subprime Lenders

The subprime lending market is ever-evolving, especially in the subprime car title loan industry.

With the recent statistics unveiled by California-based LoanMart, there’s no doubt that certain vehicles are more popular than others regarding car title loans.

As lenders in this market, it’s crucial to understand these trends to optimize our offerings and ensure continued growth.

LoanMart reported a robust 36% growth in the third quarter compared to the first.

This significant uptick was primarily tied to loans associated with 15 specific vehicle models.

Let’s delve into these vehicles and understand why they’re the top choices for car title loans.

1. Ford F-150: Leading the pack, the Ford F-150 has consistently been the most popular vehicle connected to car title loans for three quarters in a row at LoanMart.

In Q3 alone, this robust truck accounted for over 3% of its loans, with an average loan amount of $6,082.

Its enduring popularity is a testament to its resale value and market demand.

Ford F-Series is America’s best-selling truck for 46 consecutive years and America’s best-selling vehicle for 41 years after selling an average of at least one F-Series Truck every 49 seconds last year.

Texas has the most pickup trucks and is home to the most semi-truck drivers.

[NOTE: An overlooked title loan niche is tractor units, also known as lorry units, power units, prime movers, ten-wheelers, semi-tractors, semi-trucks, semi-lorries, tractor cabs, truck cabs, lorry cabs, big rig tractors, or big rig trucks is a characteristically heavy-duty towing engine. 

Title loan lenders can increase their loan book size dramatically by focusing on big rig loan principals exceeding $50,000 while still maintaining a 40% to 60% “loan to value” [LTV] ratio!

2. Toyota Camry: The Camry’s reputation for reliability and durability makes it a preferred choice for many borrowers. Lenders can trust in the longevity of this vehicle, ensuring secure collateral.

3. Chevrolet Silverado 1500: Another strong truck, the Silverado is widely popular in the U.S., offering lenders a reliable asset to hold against the loan.

4. Honda Accord: Known for its fuel efficiency and dependability, it remains a favorite for drivers and lenders alike.

5. Toyota Corolla: One of the best-selling cars globally, the Corolla’s universal appeal and consistent performance make it a strong contender in the car title loan market.

6. Ford Fusion: A midsize car with a solid track record, Fusion’s popularity in the secondary market makes it a top choice for subprime loans.

7. Nissan Altima: With a balance of style, performance, and reliability, the Altima is frequently chosen as collateral due to its lasting value.

8. Honda Civic: A compact car with a massive following, the Civic’s reputation for reliability and longevity makes it a sought-after vehicle for title loans.

9. Honda CR-V: This compact SUV combines versatility with durability, offering a compelling option for borrowers and lenders.

10. Chevrolet Malibu: A mainstay in the American market, the Malibu’s consistent resale value makes it a prime choice for car title loans.

11. Ford Escape: A compact SUV that’s been consistently popular, the Escape offers a balance of size, efficiency, and value.

12. Ram 1500: A stalwart in the truck sector, the Ram 1500 provides a robust and reliable option for those seeking car title loans.

13. Jeep Wrangler: With a unique market position and loyal following, the Wrangler offers a distinct and valuable proposition for title loans.

14. GMC Sierra 1500: Another heavyweight in the pickup segment, the Sierra 1500’s robust market presence ensures it remains a top choice for lenders.

15. Chevrolet Tahoe: A large SUV with a commanding presence, the Tahoe’s lasting value and popularity make it an excellent vehicle for title loans.

Final Thoughts for Subprime Lenders:

The patterns in vehicle choices for car title loans offer intriguing insights into consumer preferences and market dynamics. The dominance of trucks, especially the Ford F-150, highlights the importance of vehicles that retain value and have a consistent market demand.

Understanding these trends can aid in decision-making, risk management, and portfolio diversification for lenders in the subprime sector.

Lenders can better anticipate market needs, improve profitability, reduce defaults, and adjust their strategies by staying attuned to the vehicles most often associated with car title loans.

In conclusion, the world of car title loans is as dynamic as the automotive industry itself.

By recognizing the top vehicle choices among borrowers, lenders can ensure they remain at the forefront of this evolving market.