THE BLOG

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    
https://AutomobilePawn.com
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
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.
 
 
08
Feb

California AB539 Solutions for Lenders

<36%: Do you want to remain in business? We offer a turnkey program that will enable you to start/continue offering <36% APR title loans while maintaining a 200%+ ROI on your portfolio.

These solutions for continuing to offer <36% APR collateralized loan products “work” in all states!

1 in 3 Californians Struggle!

Nearly 1 in 3 Californians have a subprime credit score or no credit score at all,6 meaning they likely struggle to access credit through a traditional bank or credit union. Here’s the New York Fed Study: Click

We have 2 Solutions to choose for all States:

Offer CPI: “Collateral Protection Insurance” coverage to your title loan/collateralized borrowers.
OR
Collaborate with a federally recognized Native American Indian tribe. LeaningRockFinance.com ] #consultingservices #ab539 #tribelending #smalldollarloans

California AB539: The law became effective January, 1st, 2020. California Department of Business Oversight Law: Click Here CDBO

California Sub-36% APR AB539 Transaction Volume

Solutions for <36% APR Lenders

We’ve reviewed hundreds of existing California CFL consumer contracts. The majority already reference the forced-placement of collateral protection insurance to protect the lienholder from a catastrophic loss.

If your contracts do not already have this language, allow our 25-year experienced Team to provide your contract language free of charge.

Additionally, we offer a 100% turnkey package enabling your title loan company – in any State – to offer <36% APR collateralized loan products while still earning superior ROI on your business investment.

Simply email: TrihouseConsulting@gmail.com to schedule an exploration.

Native American Indian Tribe Collaborations

Additionally, if your offering consumer personal loans at ANY APR, we provide collaborations with Native American Indian tribes. This “works” just like the “bank model.” Visit LeaningRockFinance.com for an introduction.

06
Feb

How to Start an Alabama Car Title Loan Company

Opening a car title loan business in Alabama is easy, and can be very profitable. Alabama has specific licensing, regulatory and compliance statutes in place. You can access all the Alabama car title loan, pawn, small-dollar loan and payday loan license applications here: Alabama Department of Financial Institutions.

FAQ’s [Alabama Frequently Asked Questions] for entrepreneurs interested in launching or buying a small-dollar loan company are available there as well. Regarding payday loans in Alabama, there is a statewide database.

Frequently Asked Questions: Statewide Database for Deferred Presentment Providers Updated February 15, 2019
Frequently Asked Questions: Statewide Database for Deferred Presentment Providers Updated February 15, 2019

If you have invested in our “bible:” How to Loan Money to the Masses Profitably, you know that we advise readers of our course to study our Course carefully and then actually get a loan yourself.

How to Start a Loan Business
How to Start a Consumer Loan Business.

Here’s some interesting commentary from JD Supra regarding maintaining secured creditor rights in regards to Alabama car title loans & pawn.

Secured creditors must be ever mindful of their rights in consumer bankruptcy cases. Details that might seem technical or insignificant can mean the difference between a creditor’s obligation being secured and being unsecured, having a claim denied or having collateral released from the bankruptcy estate into the hands of the creditor, allowing the creditor to mitigate its financial loss.

In a recent case from the U.S. Bankruptcy Court for the Middle District of Alabama, a secured creditor was able to protect its interest in collateral in two bankruptcy cases where its title pawn transaction customers failed to redeem their pledged vehicles during the required time period. As a result, the secured creditor was able to obtain relief from the automatic stay and exercise rights against the collateral, resulting in a better financial result for the creditor.

As always, the technical details were important to the end result for the creditor. Donna Thompson and Kisha Daniel entered into title pawn transactions and several renewals with TitleMax of Alabama, Inc. Each customer provided TitleMax with the certificate of title to her vehicle, and those certificates of title identified TitleMax as the first and only lienholder.

Each customer then filed for protection under Chapter 13 of the U.S. Bankruptcy Code and declared her intention to repay TitleMax through her Chapter 13 plan. TitleMax objected to confirmation of both Chapter 13 plans and asked the court to grant it relief from the automatic stay with respect to both debtors’ vehicles, claiming that the vehicles were not the property of the debtors’ bankruptcy estates and were not subject to the automatic stay. TitleMax argued that the debtors failed to redeem their vehicles within the time period allowed under Alabama law and the Bankruptcy Code and that the court should grant TitleMax relief from the automatic stay with respect to both vehicles.

The debtors argued, among other things, that their transactions… the Pawnshop Act… Read more below,

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