Beginning car title loan lenders often ask about typical title loan borrower repayment schedules. Based on over 30,000 title loans over the past 3 years, here’s the average breakdown. Of course, if you’ve been a title loan lender for a while, your car title loan software should reveal your actual statistics.
Basically, car title loan borrowers repayment schedules breakdown like this:
- 3 borrowers in 10 pay off their title loan in full within 30 days
- 1 borower in 10 will renew their title loan 1 time before paying off their loan in full
- 1.5 borrowers in 10 will renew their car title loan 2 to 4 times before paying off their title loan in full
- 4.5 title loan borrowers will renew their car title loan 5 or more times or will NEVER pay off their loan.
Needless to say, the title loan business can be very profitable.
Add other revenue streams [Insurance, tax preparation, DMV services…] to your product offerings and you can make some serious MONEY!