THE BLOG

23
Oct

Maximizing Profits: Best Practices for Efficient Car Title Loan Operations

How to Start a Title Loan Business

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.

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20
Sep

🎯 Subprime Lenders, Take Note: ENOVA’s Q2 Success is Your Masterclass

Why ENOVA's Q2 2023 Financial Performance Is a Lesson for Subprime Lenders

Lending to financially challenged consumers and small-to-medium businesses (SMBs) is rewarding and risky—the success of any lending business pivots around the dual axes of growth and risk management.

The recent Q2 2023 earnings report from Enova International, a publicly traded lender, is a case study in this balance.

As a seasoned consultant in the lending space, I see the Enova report not just as an affirmation of the company’s solid strategies but also as a treasure trove of insights for my clients.

The Pros of Following Publicly Traded Lenders Like Enova

  1. Benchmarking: Understanding the performance metrics of successful companies can serve as a benchmark for your business.
  2. Risk Management: Observing how Enova manages its credit risk can offer valuable insights into creating robust risk management systems.
  3. Strategic Moves: Companies like Enova often lead the way regarding strategic initiatives, portfolio diversification, or technological investments.
  4. Financial Planning: The financial statements and earnings calls can serve as an excellent educational resource for understanding financial planning in the lending industry.
  5. Market Trends: Following publicly traded lenders can help you stay abreast of industry trends, aiding in strategic planning.
  6. Publicly traded lenders are required to disclose their financial performance quarterly. This provides valuable insights into the performance of the lending industry.
  7. Publicly traded lenders are also subject to greater scrutiny by investors and analysts. This helps to ensure that they are operating responsibly and sustainably.
  8. By following publicly traded lenders, business lenders can learn from the best practices of their peers. This can help them to improve their business lending performance.
160 Million USA Households live paycheck to paycheck

So What?

Enova International’s Q2 2023 earnings report is more than just an overview of the company’s excellent performance; it’s a learning tool for anyone in the lending space, especially those focusing on financially challenged consumers and SMBs.

The report offers multiple takeaways, from understanding the importance of portfolio diversification to the need for robust risk management systems.

As a consultant and teacher, I highly recommend that my clients keep an eye on such publicly traded lenders; their performance and strategies can serve as a valuable guide to navigating the challenges and opportunities in the lending landscape. 

Publicly traded lenders provide valuable insights into the performance of the lending industry, and they are subject to greater scrutiny by investors and analysts. By following publicly traded lenders, business lenders can learn from their peers’ best practices and improve their business lending performance.

To those who aim for a sustainable and growing lending business, the path ahead is more straightforward when guided by proven success stories like Enova International.

Additional tips:

When following publicly traded lenders, it is essential to pay attention to a variety of metrics, including revenue, profitability, asset quality, and capital strength.

It is also essential to consider the specific business model of each lender. Some lenders specialize in certain types of loans, such as financially strapped line-of-credit, installment, collateralized, or small business loans.

Pay attention to your targets’ infrastructure plan! Is this lender employing a 100% storefront footprint, an online channel, or a blended model?

ENOVA: Key Takaways

Enova’s diversified portfolio continues to drive growth. Business products represented 62% of its total portfolio in the second quarter, up from 57% in the same quarter last year.

Consumer revenue increased by 19% year-over-year, driven mainly by strong demand for line-of-credit products.

Enova’s revenue increased by 22% year-over-year to $499 million in the second quarter of 2023.

Adjusted EBITDA increased by 24% year-over-year to $126 million.

Portfolio Diversification: A greater focus on business products, making up 62% of their total portfolio.

The company is continuing to de-emphasize its longer-term near-prime installment loans. The percentage of consumer installment loans in the company’s portfolio decreased in the second quarter.

Enova is also continuing to invest in its technology and analytics capabilities. These investments are helping Enova to manage risk better and grow its business.

Credit Quality: Net charge-offs decreased from 8.2% in Q1 to 7.6% in Q2.

Adjusted EPS increased by 5% year-over-year to $1.72.

For the seventh consecutive quarter, the company originated more than $1 billion in loans in the quarter.

Enova’s balance sheet is strong, with $1.1 billion in total liquidity.

The company is exploring ways to further unlock shareholder value, including repurchasing shares and bonds.

Financial Strength

The 22% increase in Enova’s revenue to $499 million is a stellar indicator of the company’s growth trajectory. Their Adjusted EBITDA rose by 24% to $126 million.

Significantly, this growth has not come at the cost of increased risk. The reduction in net charge-offs from 8.2% to 7.6% demonstrates that Enova has a handle on credit quality. 

Portfolio Diversification 

Enova’s strategic move to diversify its portfolio towards business products—accounting for 62% of the portfolio this quarter—has paid off. This is a critical lesson for lenders in the subprime and SMB lending space, signaling that diversification is vital to minimizing risk and tapping into new revenue streams.

Technology and Analytics Investments

Enova continues to invest in its technology and analytics capabilities, which it credits to its ability to manage risk effectively. Given that analytics play an integral role in modern lending, this emphasis is an essential takeaway for my clients.

Ready to Become a lender to the masses?

Your investment? $150.00 Immediate PDF delivery to your Inbox.

How to start a payday loan and Car Title Loan Business

Table of Contents

Your First Steps: Page 17

Macro View of the Consumer Loan Industry. Page 19

State of the Consumer Lending Industry. Page 23

Hang-In There! The Future is Ours! Page 30

Flash – It’s a Whole New Business. Page 33

The Future of the Consumer Loan Industry. Page 47

Executive Summary. Page 56

Consumer Loans Defined. Page 58

The Demand Side. Page 59

Customer Profile. Page 62

The Numbers. Page 64

Regulatory Environment. Page 68

Legislative Survey. Page 70

Trends in Financing & Valuations. Page 70

The Future of Lending. Page 72

The Loan Process: an Overview. Page 74

Step-by-Step Procedures. Page 75

Consumer loan Procedures Step-By-Step Overview. Page 75

Telephone Qualifications: Your Most Important Skill. Page 79

In Your Office, Step 2. Page 84

How to Calculate the APR Formula. Page 85

General Tactics. Page 90

Exhibits. Page 94

Loan Extension Procedures. Page 102

Typical Installment Loan Breakout. Page 105

Title Loans: Overview of the Product & Industry. Page 106

How Big Is the Title Loan Market? Page 107

How Title Lending Works. Page 108

Who Uses Auto-Title Loans. Page 110

Title Loan Profits. Page 112

Regarding Title Loan Legislation. Page 116

Laws & Regulations. Page 117

Title Loans: Documents You Need. Page 120

Recording the Title. Page 123

Title Loan Add-On Fees. Page 126

Title Loans: Repossession. Page 126

Title Loan Repossession Checklist. Page 129

Repossession: The Consumer’s Point of View. Page 134

Defaults and Repossessions in Motor Vehicle Transactions. Page 147

Title Loan GPS, Starter Interrupt Devices – Payment Assurance Devices. Page 151

How to Value Your Loan Collateral. Page 161

Title Loan Lender Philosophies. Page 166

Title Loan Lenders Serving Active-Duty Service Members NO-NO! Page 166

Title Loan Resources. Page 169

Detecting Title Fraud. Page 170

Title Loan Forms. Page 173

Man loading & Personnel Page 178

Consumers typically apply for consumer loans as follows: Page 178

Profits: How Much Can You Make? Page 180

Sub-Prime Consumer Reporting, ID Validation & Credit Bureaus. Page 185

Software for the Business of Lending Money. Page 200

Features & Issues to Consider: Page 203

Consumer loan Software Vendors. Page 206

Electronic Funds Transfer (ACH & EFT). Page 211

Internet Lending: How to & Strategies. Page 228

How Internet Lending Works. Page 229

Your First Steps to Reverse Engineer an Internet Lender’s Loan Process. Page 230

Web Site Development. Page 233

Choosing a Domain Name. Page 233

Web Site Hosting. Page 234

Web Site Development. Page 235

In-House Development. Page 235

Out Sourcing. Page 237

Turnkey Websites. Page 239

Search Engine Positioning. Page 241

Keywords and Key Phrases. Page 246

Final Note on Google’s PPC Policy. Page 247

More on Pay-per-Click Search Engines. Page 251

Definitions. Page 252

Marketing Other Than Search Engines. Page 254

Affiliate Programs. Page 254

CFSI Small Dollar Loan Data. Page 257

Purchasing Loan Leads & Applications. Page 270

Buying Consumer Loan Leads. Page 270

Percentage of Applications Funded. Page 272

Fees to Charge. Page 272

Email Strategies. Page 274

Mobile-Friendly Web Sites. Page 277

Faxing of Loan Documents. Page 281

Collections. Page 283

Debt Collector’s Phone Communication Required Statements. Page 291

List of Techniques & Procedures for Your Collection Campaign: In-House Approach. Page 292

Collection Record Keeping and Data Entry. Page 292

Typical Collection Letter Template. Page 300

Taking the Risk Out of Consumer Advances. Page 301

Collections: Final Thoughts. Page 301

Extended Payment Plans. Page 302

Consumer Perspective on Collectors. Page 304

Collections. Page 306

Collection Letters & Practices. 307

Avoiding the Pitfalls of Debt Collection. Page 307

Small Claims. Page 313

ID-Verification Systems. Page 325

Instant Bank Verification. Page 327

Selling Your Debt. Page 329

How to Calculate the True Annual Percentage Rate on a Consumer loan? Page 330

The APR Formula. Page 331

APR for Deferred Presentment Loans. Page 332

Default Rates. Page 333

Compliance Issues. Page 335

Arbitration Clauses. Page 346

Licensing & Legislation. Page 350

Current Licensing Models. Page 352

•      Choice-of-Law Model: Page 352

•      State-by-State Licensing Model: Page 352

•      Offshore Model: Page 352

•      Sovereign Nation: Page 352

•      Credit Services Organization (CSO) Model: Page 352

•      Bank Model: Page 352

•      Creative Models: Page 352

Scenario 1. Page 353

Scenario 2. Page 353

Scenario 3. Page 353

Scenario 4. Page 355

Scenario 5. Page 355

Final Thoughts. Page 355

Consumer Loan Demographics. Page 357

Marketing/Branding/Advertising. Page 359

Craigs List. Page 365

Tactics & Strategies. Page 370

Tactics: Niches. Page 370

Tactics: How to Make Money & Not Fund Consumer Loans. Page 370

Tactics: Contact Info on Your Web Site. Page 371

Tactics: Choosing a Name for Your Company. Page 371

Tactics: Contract Language & Arbitration. Page 372

Tactics: Additional Web Site Resources. Page 372

Tactics: Stress the Benefits. Page 372

Tactics: Make it Easy. Page 372

Tactics: Repayment Options. Page 372

Tactics: Gathering Intelligence on your Market. Page 373

Your Competition: Tactics. Page 374

Site Selection. Page 376

Zoning. Page 376

Criteria for a Consumer Loan Store. Page 377

Motion Loft: A Tool for Site Selection. Page 378

Zoning. Page 380

Leasing Checklist. Page 381

Site Location Criteria. Page 383

Site Criteria Table Checklist. Page 384

Top 10 Do’s. Page 385

Top 10 Don’ts. Page 385

Consumer Lending & the Internet. Page 389

Licensing. Page 389

Internet Lending Topics. Page 390

Internet Default Rates. Page 390

Internet Volume & Capital Requirements. Page 390

Web Site Marketing. Page 391

Obtaining your Client Documents. Page 391

Delivery of the Funds to the Client. Page 391

Call Centers & Outsourcing. Page 392

Prepaid, Stored Value & Reloadable Cards. Page 394

What Are They? Page 394

Consult legal Counsel and the Vendors. Page 396

Kiosks or Automated Financial Centers. Page 397

Consumer Loan Product Alternatives. Page 398

Sales-Leaseback. Page 399

Cash Back Ad Sales. Page 402

Catalog Sales. Page 402

Delivery Document Center. Page 403

Cash Rebates. Page 403

Additional Income Opportunities & Traffic Builders. Page 406

Obtaining Funds for Your Loan Business. Page 408

Lender Resources. Page 409

Lender Surety Bonds & Insurance. Page 411

List of State Regulatory Agencies. Page 413

Definitions. Page 419

Customer acquisition Cost. Page 419

Consumer Lenders. Page 419

APR. Page 419

Cash Advance Loan. Page 419

Cash Advance Industry. Page 419

Consumer. Page 419

Contract. Page 419

Credit. Page 420

Customer Service Reps. Page 420

Deferred Deposit. Page 420

Extension. Page 420

Financial Accommodation. Page 420

Flip. Page 420

NSF. Page 420

Consumer loan. Page 420

Refinance. Page 421

Renewals. Page 421

Rollovers. Page 421

Short-Term Loans. Page 421

Typical Guide to Buying a Franchise. Page 422

Industry Associations. Page 435

Legal Resources for Lenders, Check Cashing & Car Title Lending. Page 438

Business Plan Outline. Page 441

Excel Business Plan Spreadsheets. Page 441

Conservative 1st Year Projected Cash Flow: Single Payment Loans. Page 449

Typical Minimum Equipment List for a Single Payment Startup. Page 450

I. WHAT IS A BUSINESS PLAN. Page 450

II. WHY WRITE A BUSINESS PLAN. Page . 450

III. KNOW YOUR BUSINESS. Page 451

IV. BUSINESS TRENDS TO CONSIDER. Page 451

V. BUDGETING – HOW AND WHY. Page 452

VI. MANAGING YOUR BUSINESS PLAN. Page 455

VII. SUMMARY. Page 456

VIII. OTHER CONSIDERATIONS. Page 456

PERSONAL TRAITS. Page 456

WHAT DO BANKERS LOOK FOR? Page 456

YOUR OWN PERSONAL DEVELOPMENT. Page 456

MARKETING THOUGHTS. Page 457

Sample Loan Forms. Page 461

Consumer Loan Document Checklist. Page 480

Final Thoughts on Launching & Operating a Successful Consumer Loan Business. Page 510

$150.00 PDF Download Immediately

Thorough coverage of both Internet and store-front consumer lending.

08
Jul

Supreme Court Says Bankruptcy Code Applies to Native American Tribes, Too

You're a Subprime Lender Partnered with a Tribe?

You borrow money from tribes?

This new court decision will affect you.

Key Takeaways:

According to a recent Supreme Court case, Lac Du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin, the Bankruptcy Code takes away immunity from all governments, including Native American tribes.

This means that when it comes to bankruptcy law, tribes are treated just like any other government.

If you’re involved with lending or doing business with tribal entities, this is a pretty big deal.

 

Here’s the backstory:

The Lac du Flambeau Band, a recognized Native American tribe, runs a payday loan business named Lendgreen.

 

They lent money to Brian Coughlin, who almost immediately filed for bankruptcy under Chapter 13.

 

This filing usually stops collections efforts, but Lendgreen kept trying to get their money back.

 

Coughlin wasn’t happy about it, so he took them to Court to stop the collections and asked for damages because of the stress.

 

  1. The case first landed in the Bankruptcy Court, where it got dismissed because of the tribe’s sovereign immunity, which means they’re usually protected from certain lawsuits. But the First Circuit Court disagreed and reversed the decision, stating that the Bankruptcy Code could take away a tribe’s immunity.
  2. The main point from Justice Jackson, who was on the winning side of the Supreme Court ruling, revolves around two parts of the Bankruptcy Code. One part, Section 106(a), takes away governmental units’ immunity for specific bankruptcy provisions. Another part, Section 101(27), defines a governmental unit to include other foreign or domestic governments. With these definitions, the Court said that Congress meant for the Bankruptcy Code to apply to Native American tribes.
  3. On the other hand, Justice Gorsuch, who disagreed with the majority, made the point that tribes aren’t exactly foreign or domestic governments – they have a unique status. He didn’t believe Congress clarified enough that they wanted to remove the tribe’s immunity.

For lenders who partner with Native American Indian tribes and the 60% of consumers living paycheck to paycheck who borrow money from them, this is a case where the lines are blurred on how Native American tribes are treated legally.

 

This decision means that, in terms of bankruptcy, they’re viewed just like any other government.

 

It’s a complex issue that has implications for how tribes and their businesses operate in the future.

How to Loan Money to the Masses

How to Start a Loan Business

Want to learn more?

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Improve profits

Reduce regulatory Friction

03
Feb

Car Title Loan Contract

Ready to learn more about launching a car title loan business?

"The Loan that Puts the 'Fun' Back in Funds"

Car title loans are a fantastic financial solution for individuals needing quick cash.

They offer a fast and convenient way to obtain money without the hassle of traditional loans or credit checks.

In this blog post, we’ll explore the many benefits of Car title loans and why they’re a great option for those facing financial emergencies.

  1. Fast and Convenient Car title loans are one of the quickest and easiest forms of lending available. You simply bring in your car, and the auto title lender will evaluate its worth. If you agree on the loan amount, you receive the cash right then and there. The process is simple, straightforward, and hassle-free.

  2. No Credit Checks. Car title shop loans don’t require a credit check, making them an excellent option for individuals with bad credit or no credit history. You won’t have to worry about your credit score affecting your ability to get a loan.

  3. Flexible Repayment Options. Car title loan shops are designed to be flexible and accommodating, giving you the peace of mind you need during tough financial times. The repayment period is usually between 30-60 days, with the option to renew the loan if necessary.

  4. Low-Interest Rates. Car title loans have significantly lower interest rates compared to payday loans or cash advances. This makes them a more affordable option for those needing quick cash.

  5. Confidential and Discreet. Car title loans are confidential and discreet, which is essential for those who are private about their financial situation. You can obtain a loan without having to share your personal information with anyone other than your lender.

In conclusion, Car title loans are a fantastic financial solution for those needing quick cash. They offer fast, convenient, and low-interest loans without the hassle of credit checks or lengthy applications.

So next time you’re facing a financial emergency, consider the benefits of a Car title loan and get the cash you need to get back on your feet.

Title loans from the customer's perspective

Revving up for something new?

I’m thrilled to announce the expansion of title loan businesses across the country.

Auto title loan businesses.

This innovative approach to personal finance offers a unique advantage for those in need of fast cash.

Use your car as collateral and get the money you need in a snap.

No credit checks, no hassle.

Drive off with financial stability and peace of mind.

So if you’re ready to trade in financial stress for a revved-up financial future, let’s get started!

21
Jan

Are car title loan businesses profitable?

Car title loan businesses can be profitable, but the profitability varies depending on the business model, local market conditions, and the specific regulations in place. These types of loans tend to have high-interest rates and fees, which can generate significant revenue for the lender.

Some states have stricter regulations on car title loans, which can limit the profitability of these businesses in those areas.

How do car title loan businesses earn profits?

Car title loan businesses earn profits by charging high-interest rates and fees on loans that are secured by the borrower’s car title.

The loan amount is usually a percentage of the car’s value, and the loan term is usually 30 days.

The interest rates for these types of loans can be as high as 10%+ per month, which is an annual percentage rate (APR) of around 240%.

In addition to the interest, businesses may also charge additional fees such as origination fees, late fees, and non-sufficient funds fees.

These high rates and fees can generate significant revenue for the lender!

15
Jan

Bulletproof Way to Avoid Car Title Loans?

Attention Car title loan lenders! there's a new kid in town!! [Link below]

As an industry expert, having launched and invested in car title loan businesses, I know that the car title loan industry generates billions of dollars in revenue each year.

For example, in Texas, nearly 26,000 car title loans were originated YTD [Year to Date].

Car Title Loan Business Loan originations in Texas

A car title loan business can be very profitable! Title loans enable consumers with poor credit to access cash fast with almost zero hassle.


Consumers borrow money using their vehicles as collateral. These types of loans are typically high-interest and have short repayment periods.


Title loan lenders typically charge their borrowers $15 – $30 per $100 borrowed. 

Title loan principals average between $500 and $5000. The term of these loans is usually 30 days. 

For example, a $1000 car title loan having a 30-day term at $20/$100 = $200 in fees. The total loan principal and fees paid by the car title loan customer equals $1200. 


It’s not uncommon for these borrowers to “extend” their loans beyond the 30-day term. [Refer to the Texas OCCC stats above.]

The interest rates – as measured by the Annual Percentage Rate [APR] – on these loans can be quite high, with some companies charging annual percentage rates (APRs) of 300% or more.

APRs are Just not the way!

But APRs don’t tell the real story. They’re a poor measurement for determining the cost and appropriateness of a car title loan! [Or a Payday Loan for that matter!] 

The truth about APRs and car title loans

The fees paid by customers of car title loan businesses can result in significant profits for a car title loan lender employing the latest 3rd-party vendors and platforms that provide:

IBV [Instant Bank Verification]

IWV [Instant Wage Verification]

A strong loan management software solution [LMS]

Various other underwriting tools, funding mechanisms, and collection systems.

It’s important to note that car title loans carry a high risk for borrowers.

Many borrowers cannot repay the loan on time and can lose their vehicle as a result.

Typically, title loan lenders accommodate their clients in every way possible to avoid repossessions! After all, lenders don’t want the vehicles. 

In Texas, the car title loan industry is regulated by the Office of Consumer Credit Commissioner (OCCC).

Lenders are required to disclose the terms of the loan, including the APR, to borrowers. The OCCC also sets limits on the amount that can be borrowed and the length of the loan. Texas car title loan lenders generally use the Texas CAB/CSO Model for offering loans online and in storefront locations.

It is important to comply with all state regulations, be transparent with borrowers and make sure they understand the terms and risks of the loan before signing any agreement.

25
Aug

Why Start a Car Title Loan Business?

How to start a successful car title loan company

Easy steps for starting a car title loans business

How to start your own car title loan company

This article is a complete guide to starting and operating an efficient and profitable car title loan business. It covers the basics of the industry to marketing strategies.

It’s your responsibility to find creative ways to stand out from your competitors to be successful. This article will provide you with some insights on how you can accomplish this.

What Criteria Do I Need To Meet To Open A Car Title Loan Company?

Opening a car title loan company is not as easy as it may seem. There are several criteria you need to meet before you can open your own car title loan company.

  • The main ones are:
  • You must be at least 18 years old.
  • You must have a valid driver’s license.
  • You must get licensed in your state.
  • You need capital [$25K minimum is recommended]
  • You don’t need a physical location

How much does it cost?

Car title loans are a type of collateralized loan. They are used to provide short-term loans for people who need money to purchase cars, pay for car repairs, or to cover other expenses.

The cost of starting up a car title loan company depends on your location and the type of business you want to start. You will need to consider the costs of getting a license, getting the necessary insurance, and setting up your office space.

1st Step? Get a car title loan from a competitor in your area.

  • Invest in a 3-ring binder to organize your car title loan project
  • Visit a car title loan location
  • Your first visit should be on a busy day
  • Watch, look, and listen
  • Take photos of licensing info and fee structures on the store walls
  • Take a photo of the State licensing authority for your state. [Hint: It;s mounted in public view!]
  • Learn all you can on this first exploratory visit. Listen to the Customer Service Representatives

2nd Step?

  • Call the State licensing authority you took the photo of. Ask about licensing a car title loan business.
  • What do you need?
  • Can you download the application?
  • Do you need a bond?
  • Must you have a store? Can you operate online instead?

3rd Step?

  • Time to get a car title loan
  • Grab your title to your car/truck/RV/boat/motorcycle…
    • Don’t have your title? Get a shill. A family member. A friend.
  • Experience the car title loan process
  • Get copies of EVERYTHING
  • Record the process on your phone. [Surreptitiously]
  • Borrow the minimum $$$ possible.
  • Leave the store
  • Return to your 3-ring binder and write down everything you can about your experience

To be continued.

Eventual Conclusion? The Benefits of Starting Your Own Car Title Loan Company

Start your own car title loan company, and you will have the opportunity to make a lot of money. You will be able to provide financial assistance to people who need it while making a hefty profit.

Car title loan lenders typically charge from $10 per $100 loaned each month to $35 per $100 loaned. For example, in Texas, the average is $20 to $35 per $100. In Florida, it’s $10 per $100 loaned PLUS add-on fees like insurance, inspections, DMV fees… This will depend on your state laws. [Even if your car title loan operation is an online model.]

It is not that hard to start your own car title loan company. All you need is a few thousand dollars and some patience.

Shameless Plug! To jumpstart your entry into launching a successful car title loan business, grab a copy of our Manual: ” How to Loan Money to the Masses.” We thoroughly cover -500+ pages – payday loans, car title loans, installment loans…

Your Investment? $297.00 Immediate PDF delivery to your Inbox.


Upcoming topics we’ll discuss?

How to Create an Effective Marketing Strategy for a Start-Up Car Title Loan Company

The ABCs of Successfully Running a Successful Car Title Loan Business

What are the Benefits of Owning Your Own Car Title Loans Company?

6 Tips on the Best Ways to Make Money in Your Automobile Titles Loan Business

How to Start a Car Title Loan Business: Handy Tips for Success

Introduction: What is a Car Title Loan?

Why You Should Consider Starting a Car Title Loan Business

How to Get Started with Your Car Title Loan Business

Marketing Your Car Title Loans Company & Building Goodwill in the Community

More coming in our next installment…

 

23
Aug

Car Title Loan Business Idea: RallyRD

Very Cool Fractionalized Car Lending Platform

Hello!  

I’m always reverse engineering new lending platforms!  

In December of 2018, Rally RD came to my attention.

I immediately bought shares of this 1961 Jaguar XKE Convertible.  Rally invests in collectibles like cars, sneakers, art, wine, watches, comic books, sports memorabilia… Then, it sells fractionalized shares in the item to investors.  

You can exit your investment at any time.  You have the option of investing as little as $25 to $1000’s.  

It’s a very cool platform! 

ONE NEW IDEA WE CAME UP WITH?  

After “playing” with it for several months, we’ve launched a new title loan business offering fractionalized title loans to our investor network. [SORRY! We closed our last capital round.] 

However, our Newsletter and Blog are read by thousands of entrepreneurs in the lending space. I’m certain many of you will come up with unique, profitable ideas after exploring Rally RD!  

Join Rally with my link & make your 1st investment in winning cool stuff!
NOTE: This LINK is a referral link entitling you and me to prizes. If you prefer, just type Rally RD Dot Com into your favorite Browser. 

Check it out: RallyRD.  

And, don’t hesitate to reach out anytime to discuss “The Business of Lending to the Masses.”  
TrihouseConsulting
https://www.linkedin.com/in/jerryayles/ 
https://twitter.com/JerAyles    
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07
Apr

Car Title Loan Lender Tip

If you’re funding car title loans, there’s a cool, free tool by Trucar.com.


You can get a collateral valuation instantly: https://www.truecar.com/trade/


Just enter the VIN, Make & Model, or License Plate Number and you’ll get an instant cash offer from a dealer. How do we use this tool? Just enter the VIN, Make & Model, or License Plate Number and get an instant cash offer from a dealer. We get the dealer value and offer our borrowers a title loan from 30% to 50% of this value. It seems to be a good barometer for LTV calculations.


That’s all folks!

03
Nov

How to Start a Car Title Loan Business

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…
 
Consultant: How to Start a Car Title Loan Business
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