Tag: start title loan business

02
Oct

How to Get Your Subprime Car Title Loan Google My Business Listing

Hi Car Title Loan Lender,
 
Often, it’s the simple things that work well and yet we overlook them.
 
I received an update from TurnKey Lender & it sparked an idea for our car title loan portfolios.
 
Why not focus on car repair companies to acquire customers for car title loan Lenders? Transmission shops, tire shops, radiator repair… Do the “Enterprise Rent-a-Car thing” and bring donuts!
 
If you’re a brick-n-mortar, simply have one of your CSR’s spend a few hours every week canvassing your local auto repair service centers. Additionally, have your CSR gather business cards, phone numbers, email address, key employee titles & names… Enter them into an Excel spreadsheet at a minimum. Lacking the skillset/time, hire someone on Fiverr.com to perform this task for you, You won’t spend  more than $20!
 
PS: Although Google “hates” >36% APR loan products, you CAN get your location to appear in Google My Business Listings. Add plenty of pictures, get reviews [Refer to our Manual for tips & tricks to secure reviews and improve your listing.]
 
Check out these search results for 92663 Car Title Loan within Google.com:
 
Car Title Loan Locations in 92663 Zip Code
Slowly, build an outbound campaign for future marketing campaigns.
 
Offer $50+ cash to the car repair employees for every funded car title loan. CASH PAID IMMEDIATELY. Have the employee come to your location to pickup the $$$. [This way, they know you & may even use your services themselves one day.]
 
If you offer car title loans Online, even better! Buy lists from lead providers for automobile service centers in the geographic area you’re targeting. [Refer to our Manual for List Brokers.] 
 
Remember from studying the statistics in our Manual that the lifetime value of one car title loan customer can exceed $10,000?
 
That’s all for now. As you likely know, I’ve spent the past 7 weeks on a Fintech Project in Paris. So, I’ll report back to you on the results in a few weeks. Au Revoir, Jer and Team Trihouse Consulting.
 
 
24
Dec

How to Start a Title Loan Business

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

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%.

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.


31
Jul

Car Title Loan Business License & Profits

Car Title Loan Business, License & Profits.

Consumers today are in need of quick access to cash without having to jump through hoops. Demand for car title loans continues to increase while “big brother” attempts to put a stop to it. To entrepreneurs on the “outside,” it’s becoming more difficult to start a car title loan business much less operate one without running afoul of the law.

This is an error in perception. Car title loan businesses can be highly profitable. Witness TMX Finance as but one example. Even in a state such as Florida, where the car title loan laws can be a challenge, the creative Team at TMX Finance manage to offer car title loan products. From its Georgia headquarters, TMX Finance operates more than 1,470 stores in 18 states with plans to grow by more than 20 percent each year through 2017.

How to start a title loan business

TMX Finance Car Title

Of course, there are those who question the TMX Finance car title loan product. They rant and rave about the 100%+ APR. But their car title loan customers don’t complain. More and more consumers caught in a financial challenge seek out TMX Finance and the rest of us to solve their emergency.

Yes, there are always a few knucklehead consumers who abuse the product. Be it a loan, a drug, alcohol, sex, chocolate, Coca Cola… someone somewhere is going to misuse our services.

And, of course, there are product and service providers who take advantage of consumers as well. Witness the front page of the Wall Street Journal every day. Banks, hedge funds, car makers, drug companies, and yes LENDERS do stupid things.

Malcolm Gladwell refers to them as “Outliers.”

But does this mean all these loan product offerings should be outlawed? Certainly not. New entries into the lending industry are appearing almost daily. Technology combined with “big data” underwriting are enabling entrepreneurs to offer financial products to consumers at rates that make sense given the circumstance. At the other end of the scale, your local title loan lender/payday loan providers – now called installment loan lenders – still remain. Why? Because they’re needed. Because of DEMAND! Because the solo-store lender can still make a good profit AND serve her neighbors in need.

Typically, a car title loan is 30 days in duration. Borrowers give the title to their cars, RV’s, boats, motorcycles… for a loan ranging from $100 to several thousand dollars. On the due date, the borrower can pay the interest/fee and renew the loan for the amount of the principal. If the borrower defaults on the loan, the lender can repossess and eventually auction the car to get their loan principal back.

What the anti-title loan contingent doesn’t realize is that we don’t want the car. We would rather “work” with our customer and get them back on track. If this means waiving a late fee or helping our title loan customer avoid a series of NSF’s we’re more than willing.

Fees paid by title loan borrowers are generally in the 8% to 20% per month range. Borrow $1000 for 30 days and it will cost you $80 to $200 per month. These fees are clearly and plainly discussed with each car title loan borrower. No one puts a gun to the head of a borrower. And, despite the claims of our adversaries, we don’t hide the fees or use a 6pt font to disclose the fees.

In Florida, the max interest rate on a title loan is 30%. TMX changed the format of its loans, charging borrowers the maximum interest rate, and then typically adding fees for two types of insurance.  One of the policies reimburses InstaLoan if the car (collateral) is damaged. Borrowers who can’t repay their loans must pay fees for a new round of insurance each month to keep their cars.

This Florida lending strategy can achieve an effective annual APR rate of 100+ percent. It enables TMX Finance to continue to serve customers in need. The insurance sold through InstaLoan is provided by Lyndon Southern Insurance Co., a subsidiary of the publicly traded Fortegra Financial Corp.

Do your homework to apply for a car title loan business! Florida title lender applicants seek a license from the Florida Office of Financial Regulation. The lender registers under a statute for for consumer finance companies that offer longer-term installment loans. The title lender law bans the inclusion of insurance with loans. The consumer finance law doesn’t. Our “Car Title Bible” covers each state. If they already exist in your State, you know they’re legal.

How to Start Title Loan Biz

How to Start Title Loan Biz

Bottom line? Car title loan products are in demand. Title loan lenders can make a profit and serve their neighbors without abusing them. Lacking your local car title lender, where does a borrower of a few hundred to a few thousand dollars go? Hopefully, their first stop will not be a gun shop! To learn how to start your own car title loan business in any state, check out our “How to Start a Car Title Loan Bible.”

 

 

Share