THE BLOG

21
Aug

Utah Car Title Loans: Laws

Utah Title Lending Registration Act Chapter 24

General Provisions 7-24-101 Title.

This chapter is known as the “Title Lending Registration Act.”

7-24-102 Definitions.
As used in this chapter:
(1) “Nationwide database” means the Nationwide Mortgage Licensing System and Registry,
authorized under 12 U.S.C. Sec. 5101 for federal licensing of mortgage loan originators.
(2) “Rollover” means the extension or renewal of the term of a title loan.
(3)
(a) “Title lender” means a person that extends a title loan.
(b) “Title lender” includes a person that:
(i) arranges a title loan on behalf of a title lender;
(ii) acts as an agent for a title lender; or
(iii) assists a title lender in the extension of a title loan.
(4)
(a) “Title loan” means a loan secured by the title to Continue Reading..

08
Mar

Virginia Car Title Loan Business Startup

Here’s the 2014 Virginia car title loan statistics as reported by the Virginia State Corporate Commission. 2014 is the latest available as of today.

Virginia average title loan principal is $1048.00.

There were just over 155,000 Virginia car title loans made.

Average number of Virginia car title loans per borrower was 1.2.

The average APR for Virginia car title loans was 222%.

There were 19,000+ Virginia title loans repossessed (12%. This is much higher than our title loan stores.)

Want to start a title loan business in your State? Begin here: “How to Start a Car Title Loan Business.”

 

Virginia-Title-Loan-Statistics-61-03

Virginia Auto Title Loans Report-61-10-VA State

22
Dec

Are Car Title Loan Businesses Profitable?

Profits & ROI: Lending $$ on Car Titles

Title loan business profits.

Before you invest any more time in considering a car title loan business start-up, let me explain how much MONEY you can make!

Let’s begin with a real transaction. We have equity in California stores. We offer payday loans, car title lending, scrap gold buying and tax services.

In one of our California title loan locations, a new customer walked-in requesting a title loan on his truck. We determined the “low-book” value of his collateral was $15,000. We loaned $3000 at 9% per month ($270/month) for 36 months with zero pre-payment penalty. If this customer chooses to, he’ll pay us a total of $9720 in fees AND will still owe us $3000 in loan principal.

What’s the worse case? Our borrower doesn’t pay us back the $3000. We call our repo guy and he picks up the truck. He delivers it to the auction. The auction company cleans it up and sells it for us. We get a check from the auction for $12,500. We add on our repo fees, auction fees, late fees… and send our truck owner the balance. All we did is pick up the phone!

The point?
You really don’t need to read any further to grasp the profit potential in the title loan industry.

If you’re interested, I delve DEEPLY into PROFITS in our “Title Loan Manual” here: http://www.AutomobilePawn.com

Title Loan Business

Title Loan Business

Once you get rockin & rollin, it’s not a huge leap to make 100+ title loans via one store or website.
100 title loans averaging $3000/ea = $300,000 “on the street.”
$300,000 X 9%/month = $27,000/month in gross fee income!

As you can see, deduct for 1.5 employees, rent, phones, software… AND YOU”RE MAKING SERIOUS MONEY!

You will read a daily newspaper somewhere and stories like these will appear:

A single mom, Amy Poormom in Iowa, received a $350 auto title loan for 14 days, paid only the interest portion 8 times with no portion applied to the principal, in total paying $977.

An auto mechanic in Tyler, Texas paid $1211 in interest and fees over 11 months; only having reduced the principal balance by $15.

Burdened by medical expenses, Amy Poormom applied for and received a $500 auto title loan secured by her 1995 Ford Taurus.  This was a loan for 30 days and specified a loan fee of $30 per $100 borrowed.  Amy renewed (paid only the interest/fee of $150) for 12 months.  At this point Amy had paid a total of $1800 in interest/fees while still owing a balance of $500.

Of course, the “mean” car title loan company repossessed Amy’s car (which she needed for work) and sold it for $750 at an auction.  Now Amy can no longer get to work.  Amy lost her job.  Worry and stress put her in the hospital.  Now, the hospital is suing her for non-payment; she has no job so she has no insurance.

What is not mentioned or even considered is that Amy Poormom needed the initial title loan because no one in her family was willing to provide her with the $500 she needed for tires and brakes on the car.  The auto title loan company actually enabled her to gain another 12 months to get her life back on track.  It could be said that had the auto title loan company not come to her aid and provided some hope for Amy, the ultimate outcome would have come earlier.  Perhaps the family should have performed an intervention to help her with her crack habit?

Ok, if you’re reading this you may think we are getting carried away. But these are real-life events.

ENOUGH OF THIS!  If you’re so inclined, make some serious cash and use your profits to give back to your community any way you see fit. (Note that Warren Buffet owns MANY mobile home parks. He makes a LOT of money with them. He takes a LOT of heat because of the way they are operated. Warren gives $$$ back…)

Back to title loan business profits.

States and provinces having specific auto title loan statutes and fee structures typically prescribe 3% – 30% per month on the principal loaned; 25% being the average in the USA.  Thus, a $1500 loan for a 30 day time period could yield total interest payments of $45 to $375 with no portion applied to the principal.  Thus, if after 6 months, the consumer continues to “roll-over” this loan they will have paid as much as $2250 in fees/interest.  The balance due would remain $1500!

$500.00 borrowed for a 30 day term will typically cost $125 including miscellaneous fees.  The actual range is roughly $75 to $190 depending on the state/province and the exact circumstances of the borrower.

After you enter the title loan business, you’ll be pleasantly surprised by the number of customers who will have a late model Lexus or Mercedes.  It’s amazing how many people receive settlements and use the proceeds to purchase a new luxury car.  Later they experience cash-flow problems and need your help.  And they have the car titles!

Even in a state like Florida where the title loan statutes prescribe an interest rate of 30% per annum, it’s a simple matter to put $250,000 “on the street” in auto title loans.  This would yield a gross of $75,000/year versus a CD earning $15,000. By the way, Florida title lenders are very creative. They add on road service fees, application fees, up-front loan matching fees… achieving SUBSTANTIAL ROI’s.

Title loan clients may not be totally bereft, but they are in trouble and are willing to borrow money at interest rates dwarfing those of a conventional bank loan; ranging from 17 percent a month (204 percent APR) on $500 or less to 10%, 20%, 30%  percent a month  on more than $5,000.

“Your job is your credit” rings very true in our industry.  We have a Texas title loan operator having 300 people bringing him $40 per week.  That’s $12,000 per week!  If the car breaks down, he has it fixed and adds it to their loan.

A great number of auto title loan lenders add on several fees to improve their ROI’s and provide incentives to their clients to pay on time.  These include but are not limited to:

* A $15 fee if a collection letter must be mailed to the consumer
* A $25 returned check fee Late fees (5% is typical)
* Should a collector be sent to their door, a $50 to $100 fee is imposed
* Deficiency fees are collected should a sale of the vehicle yields less than the amount owed.

Alright. If you found this interesting, PLEASE TELL ME: Jer@AutomobilePawn.com

And, if you’re ready to jump into the Title Loan Industry,
GO HERE and invest in our 300+ page “How to Start a Title Loan Business Manual.”

26
Nov

Virginia Car Title Loan Laws

Virginia Car Title Loans

What is a Virginia car title loan? A car title loan is a short term, high interest loan secured by the borrower’s car title as collateral. If the borrower defaults on the loan, the car title lender has the right to repossess and sell the vehicle. Nearly 150,000 Virginia households reported using an auto title loan last year.

How does a car title loan work? To receive an auto title loan, borrowers are required to provide:

  • a driver’s license or photo identification,
  • a clear vehicle title, the car (to be inspected), and
  • proof of income.

Title loans made to Virginia residents may range from a minimum term of four months to a maximum loan term of one year.

How to Start Title Loan Biz

How to Start Title Loan Biz

The borrower remains sole owner of the car until the point at which the car is legally repossessed.

The loan issued can be no more than half of the market value of the car.

Virginia title loans must have a clear due date and repayment must be in substantially equal monthly installments of principle and interest Interest rates on loans are capped at:

  • 22% per month (264% APR) for that portion of the loan under $700
  • 18% per month (216% APR) for that portion of the loan between $700 and $1400
  • 15% per month (180% APR) for that portion of the loan over $1400

Virginia Car Title Lenders are prohibited from:

  • Making more than one loan at a time per borrower
  • Refinancing, renewing or rolling over loans
  • Electronically debiting of borrower’s deposit account
  • Making loans to members of the military or their direct dependents

Always consult your legal counsel to make certain that you have the latest Virginia car title loan laws, fees, compliance and licensing information

12
Sep

Virginia Title Loan Business

Virginia Title Loan Business

State AG misstates Virginia car title repossessions.

“Nearly 20,000 Virginia car title loan transactions resulted in a repossession last year? Virginia AG Cracks Down on Car Title Loan Companies What a load! Where is the data? It doesn’t exist.

California Title Loan Business Startup

Click to Invest Now!

What’s more likely? Credit unions and banks repossessed 98% of these cars having title loan liens registered against them. Where did this guy get his facts? Who will these car title loan customers rob, borrow, embezzle funds from to meet their emergency financial needs?

Who puts a gun to the head of these car title loan borrowers and forces them to take the money?

Mr. AG, you want to put a stop to car title loans in Virginia? Create JOBS!

Want to start your own car title loan business? Check out or newly updated Manual: “How to Start a Car Title Loan Business.”

05
Sep

How to Set Up a Title Loan

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

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


20
Aug

Oregon Car Title Loans

Title Loan Business

Title Loan Business

How to Start a Oregon Car Title Loan Business

Oregon car title loan companies are regulated by Oregon Division of Finance and Corporate Securities:
Toll-free: 866-814-9710
Email: dcbs.dfcsmail@state.or.us
Office Hours: Monday-Friday, 8:00 AM – 5:00 PM Pacific Time

Paying too much for your Oregon title loan? Internet lenders are overcharging residents of Oregon.

Here is the most you should pay for a Oregon payday loan or car title title loan.

Loan Amount

Origination Fee + Interest

Total Loan Cost

$100

$13.06

$113.06

$200

$26.12

$226.12

$300

$39.17

$339.17


If your Oregon car title loan cost is higher, your lender is probably unlicensed in Oregon.

In Oregon the legal limits on what can be charged are:

  • A one-time 10 percent loan origination fee, up to a maximum $30, for a new loan.
  • 36 percent interest.*
  • Only two renewals, or “roll overs,” on an existing loan. After two renewals, you must pay the loan amount and interest in full.
  • The payday or title loan must be for at least 31 days and not longer than 60 days.

Payday or title loan lenders must give you a written loan agreement clearly explaining the fees, percentage rate, payment due dates, and what happens if you’re late with your payments or you default.

All payday loan or car title lenders, including those online, must be licensed by the State of Oregon.

*The annual percentage rate (APR) – the total of all interest and fees calculated on an annual basis – will be 153.77 percent if the lender charges the maximum interest rate (36 percent) and the maximum origination fees allowed.

10
Aug

Start a Title Loan Business?

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.

08
Aug

Title Loan Marketing Ideas

Car Title Loan Marketing Ideas for your Title Loan Business

One of the most frequent questions I receive is, “How do I get more customers for my car title loan business.”

There are a million ways! Let’s begin with a free, simple method: CraigsList.org. Pull up CraigsList.org on your computer and post your car title loan service. It’s not rocket science. Assign this task to a specific employee to be done weekly. In no time this individual will become proficient at this task. Rinse and repeat REGULARLY! There is no reason why you can’t pickup at least a few new car title loan customers; no matter how small your town. And don’t forget to check their work.

CraigsList-300X249-car-title-loan

Car Title Loan Marketing Ideas

Here’s a nice, real world example of a Posting on Craigslist: This is a real listing!
Title Loans — Instant Cash, Keep your car!!
No Credit Check Necessary!
Get Up To $20,000 Same Day

Need a loan? Have bad credit?… NO PROBLEM!!

We specialize in Automotive Financing and collateral CASH loans. We can give you up to $20,000 instantly, no application fee’s, no pre-payment penalties, and guaranteed lowest interest rates on title loans. You don’t have to sell your car, in fact, you can keep your car and drive it while making payments.

Short Term or Long Term loans up to 36 months financing.

Services we offer. . .
– DMV Registration
– Short and Long Term Loans
– Late Payment Forgiveness
– Your personal online account to view and maintain your loan
– Many payment options to choose from
– No Application Fee’s
– No Pre-Payment Penalties
– Guaranteed lowest rates in the industry
– Up to $20,000
– Same day approval & same day funding
– We credit your account for new referrals

The process is simple and takes only minutes to complete, all you need is the title to your car and you can take home your money the same day. If you have a paid off vehicle and need cash, we can give you a loan based on the value of your car.

We guarantee we will beat any one else’s rates on title loans in the industry.
We can even renew your registration at the time of signing.

Qualifications:
– Car must be 2004 or newer
– Car must be paid off
– Maximum Mileage of 150,000
– You must have the title in your possession

Our company is Licensed and Bonded by the state of California, and we have direct access to the DMV, so we can process your loan immediately.
Do NOT contact me with unsolicited services or offers.
*****************************************************

Are you in the car title loan industry? Or, do you want to get started? Get our “How to Start or Improve Your Car Title Loan Business” now. We have 15+ years of experience in the title loan industry. Let us show you how to make money by lending money. Get our “Bible.”