Category: How to Start

24
Dec

How to Start a Title Loan Business

Posted by / How to Start

Want to start a car title loan business? Here are a few tips.

How to Open a Title Loan Business
  • 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.”

How to Start a Loan Business
Click the IMAGE to read the “Table of Contents” and learn how to Start a Title Loan Business
24
Apr

Title Loan Lenders Getting Scammed by Phony .VIN Websites

Posted by / How to Start

If you’re a title loan lender, read on. If not, DELETE NOW.

We offer car title loans in more than a few states.

In Los Angeles, we charge 8% to as much as 18% per month on the loan principal. Depends… Heavy competition!

In Texas, it’s closer to $25/per $100 borrowed.

Every state is different.

Pretty good ROI when everything goes as we planned, right?

We ultimately repo roughly 7% and sell them in order to recover our loan principal.

Sometimes we conduct private sales. Other times, we just run them through the local auction.

Among others, we use CarGurus.com… to list cars for sale.

Lately, our CSR’s are  getting calls and texts from people who claim to be interested in buying our car – but first want to see a car history report.

They request we  get this “car report” from a specific website.

This website requires some info AND pay $20 by credit card for the “report.”

We empower our CSR’s with a LOT of decision making!  One of our CSR’s sent this “report” to the supposed buyer but never heard back.

Weird, huh?

Well, it gets weirder.

The FTC put out the following PR piece about this very thing recently. My Team and I missed it!

This happened to us! Don’t let it happen to your car title loan business.

Here’s what the FTC suggested:

It turns out that when car sellers go to one of these websites, they’re automatically redirected to sites ending in ‘.vin’

Seems like it might be related to your car’s vehicle identification number or VIN, right?

Scammers hope you’ll think that too.

In this case, .vin is a relatively new website “domain” – like .com or .org – that groups can apply to use.

This domain was intended to be used for sites that relate to wine, since “vin” is the French word for wine, but others are not prevented from using it.

So yes, that’s a clever take on .vin for cars, yes, but you still might want to think twice if anyone asks you to do car-related business on a site ending in .vin.

So, if you are selling a car online and someone asks you to get a car history report from a specific site, ask why and think twice.

You may have no way of knowing who operates the site, especially if it’s one you’ve never heard of.

It might be a ruse to get your personal information, including your credit card account number.

It also could be a way for “lead generators” to get information, which they sell to third parties for advertising and marketing purposes.

Your best bet: play it safe.

Go to ftc.gov/usedcars for information on vehicle history reports, recall notices, and how to learn whether a car has been declared salvage.

For example, the National Motor Vehicle Title Information System (NMVTIS) operates vehiclehistory.gov, which lists NMVTIS-approved providers of vehicle history reports. Not all vehicle history reports are available through the NMVTIS website.

Reports from other providers sometimes have additional information, like accident and repair history. Whether you’re familiar with a company or not, it’s always helpful to see what other people are saying online. Simply enter the name of the company, and words like “complaint,” “review,” “rating,” or “scam.”

Meanwhile, go make SOME SERIOUS $$$ in the car title loan business!
Starting a Title Loan Biz? Go here: https://www.AutomobilePawn.com
Jer – Trihouse 702-208-6736 Cell
Knowledge Store: Resources for Lending $$ to the Masses!
https://www.PaydayLoanIndustryBlog.com

27
Nov

Car Title Loan Business Profits Explained-Google Searches for Car Title Loans Increases 33%.

Posted by / How to Start

Are you in “the business of lending money to the masses?”

Do you still think of yourself simply as a payday loan lender? A check casher? A bail bondsman? A personal or installment loan provider?

If you do, you are WRONG! You’re a “Financial Service Center.” You sell money! You sell money in the form of loans. Car title loans. Payday loans. Personal loans. Installment loans.

Does you business offer car title loans? No? Big mistake! Plenty of money to be made with a lot less risk!

Google says “car title loan” searches are up 33%. Here’s the proof:

how to start a car title loan business

Per Google: Car Title Loan Searches Increase 33%

What’s this mean to you? Millions of consumers in the USA want to borrow money by putting  the title to their car up as collateral! Why is that a big deal? Because, if you’re a lender, your loan is collateralized by the car. This is not your mommy’s typical high risk payday loan.If a car title loan is not paid back, the lender takes the collateral- the car!

How’s a car title loan work?

Use one of the many tools revealed in our Manual: “How to Lend Money to the Masses” to determine the “low book value” of the car in your geographic area. Agree to loan up to 50% of this “low book” value to your car title loan customer. Our Course walks you through how to legally become the title holder on your borrower’s car. Then, depending on the state you operate in, you charge fees and interest to this borrower.

EXAMPLE: We operate in Calif. The law allows us to charge any amount we like as long as the loan amount is greater than $2500. The going rate today in Los Angeles varies from 8% to as high as 18% paid monthly on the loan principal.

THE REAL WORLD MATH! So, a Ford pickup that “low books” at $9K warrants a car title loan in the amount of $4000 at let’s say 9%/month. Until this Ford truck owner pays off the $9K, they will be paying you $360/month, month after month after month… in fees.

Worst case? Eventually they stop paying you? You email your repossession service – revealed in our Course. This repo service scans tens of thousands of license plates in Wal-Mart, Best Buy, Target… parking lots. In a few hours/days they get a “hit.” This repo service hooks up the car, delivers it to the auction where it’s refurbished and sold in one of the auction lanes.

The auction sends you a check. How big? In the real world?

Low book value was $9k. Let’s assume the borrower has been paying you $360 per month for 9 months [$4000 loan at 9%/month payment. So… after 9 months this Ford truck is a little worn. It brings $7500 at the auction. The auction charges you $150 refurbishing fee [high] and $350 to perform auction services [high: include repo charges]. You net $7000.

Summing up:

  • You loaned the owner of this Ford truck $4000.
  • You received 9 payments of $360 = $3240 [Note these are FEES NOT LOAN PRINCIPAL PAY DOWN!]
  • You received $7000 from the auction
  • In total, over this 9 month period, you received $10,240 [$3240 + $7000 = ]. You loaned the Ford truck owner $4000. Your NET is $6240.
  • That’s a 253% ROI on your money in .7 years [270 days]

The more likely scenario? The one we experience?

We have car title loan clients who have customers that continue to pay their monthly fee payment for YEARS! In this example, $360/month year after year! The result? After a car title loan borrower pays $360/month – month after month – they still owe you the $4000 loan principal!

Get started now! Let us teach you how we do it. Learn “The Business of Lending Money to the Masses” today.


01
Apr

Starting a Car Title Loan Business

Posted by / How to Start

Starting a title loan business in California?

You want to start a title loan business? Need the basics? What can you charge title loan borrowers in fees and interest? How do car title loans work?

How to Start Title Loan Biz

How to Start Title Loan Biz

(This piece is focused on starting an auto title loan business via the Internet or a store-front in Calififornia. As an entrepreneur contemplating a title loan business startup, know that they are legal in roughly 20 states and we have the license applications, sample contracts and documents, and access to the laws in each state.)

Inspired by a consumer advisory from the California Department of Business Oversite, this Post does a good job of providing California car title loan startup entrepreneurs with the basics about title loan, pink slip loans, auto equity loans…

What’s a car title loan?

Title loans are called many names. Here’s a few auto title loan terms used by consumers to discover a title loan lender:

  • Pink slip loans
  • Auto title loans
  • Automobile title loans
  • Car equity loans
  • Auto equity loans
  • Cash for car title loans
  • Title loans
  • Auto collateral loans
  • Whatever you want to call them…

Basically, car title loan lenders loan money to a borrower in return for the title to the borrower’s car. The borrower is allowed to keep possession of the car and continue to drive it. We charge the borrower whatever we wish for lending the borrower our money. In our California stores, we charge 60% to 120%+ for our loans. (Typically, 8% – 18% per month on the outstanding loan principal.)

If the customer fails to pay us on time AND fails to contact us AND fails to make ANY effort to work with us, we repossess their car. We have it picked up by an independent service. We have the car delivered to the auction. The car is sold at the auction. We deduct our costs, fees and interest from the monies received from the auction company. Any remaining balance is mailed to our borrower.

Title loan Advisory by California Department of Business Oversite

1st, The CDBO advises “caution before borrowing money through an automobile title loan.”

  • Title loans require you to offer your car as collateral for your loan.
  • If you miss a scheduled payment your title loan lender can reposses your vehicle.

Tips for consumers considering an auto title loan:

  • Borrow only as much money as you can afford to fully repay when the payment is due, which may be less than the amount you may be eligible to receive.
  • You have the right to full disclosure in your contract of all interest charges, the annual percentage rate (APR) of the loan and all fees. The final contract must be in the language in which you negotiated it.
  • Before you take out a loan, read the contract thoroughly and be sure you understand all the terms.
  • Once the loan agreement is signed, you are legally responsible to fulfill the obligations in the contract.
  • Be aware some lenders use remote engine shutdown devices that allow them to turn off your car if you don’t make payments. Some of these devices have GPS tracking capability.
  • Although these loans are quick and easy to obtain, you pay higher prices for the convenience.
  • ABOVE ALL, CONSIDER AVAILABLE ALTERNATIVES. Examples include asking your employer for an advance on your next paycheck; finding out if your bank or credit union provides short-term credit products; asking creditors for more time to pay your bills; asking for a loan from a relative or friend.

Auto title loans typically are advertised as short-term loans for people who need money quickly but may not have access to more conventional loans often due to poorcredit scores.

From the California Department of Business Oversight:

“Few assets are more important to Californians’ financial security than their cars. Borrowers who use their auto titles as loan collateral are risking that asset. That’s why we strongly urge
consumers to exercise great care before taking out an auto title loan, and to try other options first. The amount of these loans typically is less than what the car is worth.”

WARNING: FOR ALMOST ALL AUTO TITLE LOANS, THE INTEREST RATE LENDERS CAN CHARGE IS UNLIMITED.

THIS SHOULD BE A LOAN PRODUCT OF LAST RESORT.

“Current California CFL License holders state law does not limit interest rates for consumer loans of $2,500 or more. The annualized interest rate on the vast majority of these loans ranged from 70% to 100% and higher. Even if you don’t have the protection of interest rate limits, the law requires lenders to deal with you fairly and honestly. That means they must fully inform you about the interest you will pay.”

“Carefully review the terms of the loan BEFORE you sign a contract! Always check with the Department of Business Oversight on a company’s license BEFORE entering into an agreement for an auto title loan. www.dbo.ca.gov 1-866-275-2677.”

ATTENTION ENTREPRENEURS: You want to start a car title loan business? Start Here!

How to Start a Loan Business

HOW TO START A TITLE LOAN BUSINESS

02
Feb

Example Bill of Sale for Car Title Loan

Posted by / How to Start

Looking for an “Example Bill of Sale for Car Title Loan” business?

A “bill of sale” is a state or province legal document that transfers ownership of a car, trailer, truck, RV, motorcycle… from one person to another.

It is used in situations where the previous owner retains possession of the vehicle.

A bill of sale is an important part of any vehicle sale; however, it is not the only thing you’ll need to consider.

  • No car title loan is final until you complete a title transfer. Without this step finalized.
  • Many states require a state-specific bill of sale form. In this case, you must fill out the bill of sale form offered by the motor vehicle agency in your state. This list includes some states that require and provide a specific type of bill of sale form when you buy or sell a vehicle:

A bill of sale may be used in a wide variety of transactions: people can sell their goods, exchange them, give them as gifts or mortgage them to get a loan. They can only be used:

  • to transfer ownership of goods that people already own;
  • to transfer ownership of moveable tangible goods; and
  • by individuals and unincorporated businesses.
  • Here’s a link to an example “Bill of Sale:” Bill-of-Sale-Example-81-03
13
Mar

Texas Car Title Loan Business Profits

Posted by / How to Start

How to Start a Texas Car Title Loan Business

You want to learn how to start a car title loan business? Read on…

According to The Texas Star Telegram, the typical Texas household is $40,000 in debt. They don’t make it clear whether this includes all Texas home loan mortgage debt; stupid.

The one thing that is clear is that Texas car title loan borrowers paid $360,000,000 in car title loan fees and interest last year. [Note: That’s an increase of $52,000,000 from the previous year. Car title loan lending is good!] This information was disclosed by the OCCC; the Texas regulatory agency for car title loan and payday loan stores and internet lenders.

Why would Texans spend this kind of money on car title loans? Because there is no where else to turn to in times of financial duress. Many Texans, like residents of California, Georgia, Arizona, Louisiana… would rather borrow from a car title loan lender for a few months than beg for help from their employer, family or friends. Why?

  • Car title loans are quick and easy
  • To qualify, you need to prove you can pay back the money and you have a car, RV, motorcycle… with a clear title. That means, no lien holder.
  • That’s right! Cars, RV’s, motorcycles, boats… all possible collateral for a title loan
  • Car title loan transactions are private

Title Loan Business

Title Loan Business

Critics of car title loan lenders are everywhere. Of course, they rarely experience “hard times” since the majority of these folks work for the government or a so-called consumer protection agency. A great example of this is the Consumers for Irresponsible Lending. [Just kidding; it’s the CRL.]

On the other hand, many consumers for car title loans work for the U.S. Post Office, the Department of Motor Vehicles, local hospitals, etc.

And of course, we have our “outlier’s.” Those consumers and lenders who push everything to the limit and place all financial service products to the point of over-regulaion! Not a day goes by that you don’t read some horror story about a poor, mistreated borrower whose car is repossessed or a car title lender who simply goes over the line of human decency because of greed.

As operators and consultants in the car title loan industry, we can report that the actual number of vehicles we repossessed are less than 3 in 100 funded title loans. In those few circumstances, we called, sent several text messages and letters to the borrowers in an attempt to get them to talk to us. Failing these measures, we simply picked up the phone, called our friendly repossessor and reported the vehicle plate and vehicle identification number to them. Within the week, the license plate scanner [LPS] company got a “hit” and our repossessor picked up the car having the title loan in a Wal-Mart parking lot.

Our car title loan repossessor delivered the vehicle to the Anaheim, Calif Manheim auto auction. There, the vehicle was reconditioned and “run” through the car auction. A week later we received our check from the auction house. We deducted the fees, interest, late charges and storage costs from the amount we received from the auction and sent the balance to our car title loan borrower’s last known address. [Note: This check was cashed :-)]

Car title loan lenders DO NOT WANT YOUR CAR! We just want our money. The fees are clearly explained AND posted on our websites and in the case of store-fronts, on the interior walls of the store.

Here’s an example of the fees we charge for a car title loan:

  • Vehicle “low book value” is $8000.
  • Borrower wanted $3000 for 30 days.
  • We charged her $180 in fees plus a $35 DMV fee.
  • That’s it!
  • Yeah, sure. Extrapolated over 365 days that’s 180%+ APR. So… if the borrower doesn’t like it, no one is forcing her to borrow the cash. Try your local bank. It would cost them $500+ just to do the paper work AND they will not offer these types of loans.

Is this loan predatory? We don’t think so. But it’s a bit like pornography. I can’t tell you for sure but I know it when I see it. In Texas, California, Georgia, Arizona… it’s legal. And for MANY Texan’s, this car title loan appears to be reasonable.

Start your own car title loan business. Get our “How to Start a Car Title Loan Business Manual” now; delivered immediately into your email inbox.

Click HERE to get started. Buy Now.

11
Aug

Car Title Loan Checklist

Posted by / How to Start

When you’re running a car title loan business it’s critical to use a “Car Title Loan Valuation Checklist” to systematically place a value on the car title BEFORE you fund the title loan.

Title loan valuation checklists don’t have to be complicated. Just the basics in addition to a few pictures.

Title loan pictures should include the “Vehicle Identification Number” [VIN], the mileage and various angles of the car. [LF Front, RT Front, Rear, Front, License Plates…]

Car Title Loan Collateral Valuation Checklist

Car Title Loan Collateral Valuation Checklist

If you’d like a version of this “Car Title Loan Collateral Evaluation Checklist,” just email us at Team@AutomobilePawn.com . For a step-by-step guide to starting or improving your own title loan business go here: “Title Loan Startup Manual.”

Once you have completed this checklist, we’ll show you how to determine the maximum LTV – loan to value – to offer your customer. There are several free tools…Vehicle-collateral-title-loan-checklist-V4-lrg

 

05
Sep

How to Set Up a Title Loan

Posted by / How to Start

How to open a title company?

You still trying to figure out how to set up a title loan company?

Still spending hours on your computer “Googling: How to Start a Title Loan Business?” Still haven’t invested in our “How to Start a Car Title Loan Business?”

Here’s some ideas we still use in our title loan and payday loan businesses:

  • First, look around. If there are zero title loan companies in your city they’re probably illegal.
  • Go get a title loan from a competitor. Nothing like getting a car title loan on your dime to see what all the fuss is about. Get copies of everything. Ask lots of questions? Don’t be shy! “Is business good?” “How many car title loans does your store average every month?”
  • Pay off YOUR title loan the following week. If you want to press it and learn about their collection process, push them to the brink of repossing your car 🙂
  • Interview employees of your competition. Setup appointments at the local Starbucks. Be upfront! Tell your title loan applicants you’re new to title loan lending and you’re planning to start a new one. If they’re really good and of value, pay them $50 or more on the spot. Maybe hire one eventually.
  • Run an ad for employees and managers on Craigslist.com like this:

XXXX Cash – Hiring for All Positions
Employment type: full-time
NOW HIRING (All Positions including Management Positions)
(Email Resume or Apply in Person)XXX Cash if you would like to apply.

PT/FT CUSTOMER ADVOCATES
HEALTH BENEFITS & 401K Available for all FT positions.
GREAT BASE PAY, BONUSES & INCENTIVE PLANS
– Bonus Compensation
– Leadership Bonus
– Performance Bonus
– Customer Service Incentive Plans

FLEXIBLE HOURS – PAID TRAINING – A high school degree is required. – XXX Cash will train you on, customer service, all the products and services offered as well as how to perform all duties and tasks.

How to Start Title Loan Biz

How to Start Title Loan Biz

We offer 2 methods to invest in our “How to Start a Car Title Loan Business:”

  • Immediate download in Adobe Acrobat: $237.00
  • We’ll print and ship it to you: $367.00


04
Sep

How to Open a Title Loan Company

Posted by / How to Start

Open a Title Loan Company

To open a title loan company, You Must Do This! 

You want to open a title loan company? READ THIS!  THIS IS CRUCIAL! You, or a member of your team, MUST become familiar with the appropriate title loan laws, statutes, legislation, licensing requirements and specific reporting requirements of your state or province.

How to Open Title Loan Company

How to Start Title Loan Biz

The moment our Car Title Manual was created it became obsolete.  (Note: We update both the digital version of our “How to Open a Car Title Loan Business” and our printed version 4 times each year.) It is for this reason we include links to your state regulatory authorities.

ALWAYS contact your state or provincial regulators for the latest car title loan laws, licensing requirements and fee structures.  This generally includes your Department of Corporations, Department of Finance, Department of Motor Vehicles, and/or city hall.

Additionally, do not fail to contact the car title loan software providers discussed in our Car Title Manual.  Visit their web sites.  Contact them for sample contracts and disclosures; we provide several example car title loan contracts as well.  Finally, Burrell Printing [see our Manual] offers a variety of forms, contracts and more for the auto title loan, payday loan, and check cashing industries.

Just as important is the need for you to actually apply for and receive a car title loan in your state or province.  This is a great way to evaluate your competition and get copies of ALL the appropriate forms, disclosures and contracts appropriate for your title loan company.

Always select your biggest and most successful title loan competitor to target.  Typically, they have spent the required funds and utilized the best legal counsel to review their documentation.  Model your materials after theirs.

If necessary, invest in an appropriate automobile to accomplish this.  Any vehicle having a wholesale value of $2000 to $5000, depending on your locale, will suffice. Your must accomplish this task. It cannot be overly emphasized! If this is “painful” it means you must do it. Stretch yourself!~

Always contact your state or provincial car title loan, pawnshop and payday loan trade organization.  The membership is comprised of your peers.  Their meetings and conventions are great opportunities to learn and connect.  See our chapter entitled “Resources” in our “Title Loan Company Manual.”

Finally, to successfully open a title loan company, subscribe to PawnBroker Magazine and Checklist Magazine at 212-807-0148.  Additionally, follow the Buy-Here-Pay-Here Industry. These two magazines are industry trade magazines offering insight, training, conventions, and new products and services that will help you to be more successful opening your title loan company.


We offer 2 methods to invest in our “How to Open a Car Title Loan Company:”

  • Immediate download in Adobe Acrobat: $237.00
  • We’ll print and ship it to you: $367.00


10
Aug

Start a Title Loan Business?

Posted by / How to Start

Want to start start a car title loan business?

This simple approach works! You want to learn how to start a title loan business? We offer all the information you need in our “How to Start a Car Title Loan Business Manual.”

Start Car Title Loan Business

Start a Title Loan Biz

One easy method we discuss? Place an ad on Craigslist for an employee. Get applications and then meet the candidates at Starbucks. It’s common for this tactic to result in a 60 minute meeting with an experienced car title loan employee who will “spill their guts” and reveal every strategy your future car title loan competitor is using to profit lending $$ on car titles.

You may even hire one of these candidates for your own new car title loan business! Or, find an experienced partner! It’s happened to us many times over the 15+ years we’ve been in the car title loan and payday loan industry.

Now, I’m not suggesting you take advantage of these applicants. Narrow down the candidates to those with real car title loan experience. Tell them you’re researching the title loan space and have not yet decided to start.

At the end of the meeting, offer to pay them for their time. If you learned a lot about the car title loan space, it’s fair to give them a check for $50 – $100 for their time and information. This is your call! It’s about integrity!! I am HAPPY to pay for good information. I think of it as an investment. And paying a great car title loan resource $100 for 60 minutes of their time makes a GREAT deal of sense to me! And again, if you “pull the trigger” and start a car title loan business, this applicant could play a key role in your success!

Here’s a very basic sample script for a “Title Loan Employee Wanted:”

  • Title Loan Rep 

    compensation: will discuss
    employment type: full-time

    Qualifications:Bilingual must peak English/ Spanish
    Have a High School Diploma or GED
    At least 1 year experience in Title Loan Industry
    Reliable transportation
    Detail oriented and have the ability to multi-task
    Employment stability
    Please email your resume!!!

Meanwhile, here’s a chapter-by-chapter description of our 300+ page Manual on “How to Start or Improve a Car Title Loan Business” and make money by lending money on titles to automobiles.

Jer Ayles

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