THE BLOG

19
May

CFPB Car Title Loan Study

CFPB Car Title Loan Study

“About 1 million households use car title loans annually, according to the Federal Deposit Insurance Corp., and the Pew Charitable Trusts figures that consumers spend approximately $3 billion annually in fees.”

“The CFPB car title loan study also found that four-in-five car title loans aren’t repaid in a single payment as intended because the borrowers can’t afford to do so. Instead, those consumers renew their car title loans the day they are due. For more than half of the car title loans, borrowers take out four or more consecutive loans.”

The CFPB car title loan study found that these car title loans often have issues similar to payday loans, including high rates of consumer reborrowing, which can create long-term debt traps. A borrower who cannot repay the initial loan by the due date must re-borrow or risk losing their vehicle. Such reborrowing can trigger high costs in fees and interest and other collateral damage to a consumer’s life and finances. Specifically, the study found that:

  • One-in-five borrowers have their vehicle seized by the lender: Single-payment auto title loans have a high rate of default, and one-in-five borrowers have their car or truck seized or repossessed by the lender for failure to repay. This may occur if they cannot repay the loan in full either in a single payment or after taking out repeated loans. This may compromise the consumer’s ability to get to a job or obtain medical care.[Note: This number is highly suspect! How the CFPB determined this percentage is anyone’s guess. For us, it’s closer to 5%.]
  • Four-in-five auto title loans are not repaid in a single payment: Auto title loans are marketed as single-payment loans, but most borrowers take out more loans to repay their initial debt. More than four-in-five auto title loans are renewed the day they are due because borrowers cannot afford to pay them off with a single payment. In only about 12 percent of cases do borrowers manage to be one-and-done – paying back their loan, fees, and interest with a single payment without quickly reborrowing.
  • More than half of auto title loans become long-term debt burdens: In more than half of instances, borrowers take out four or more consecutive loans. This repeated reborrowing quickly adds additional fees and interest to the original amount owed. What starts out as a short-term, emergency loan turns into an unaffordable, long-term debt load for an already struggling consumer.
    • Vehicle title loans typically have terms of about a month to conform to laws in many states that specify allowable loan terms. For example, at least 8 states—Alabama, Georgia, Idaho, Mississippi, Nevada, New Hampshire, South Dakota, and Tennessee—set a maximum loan term of about 30 days (or one month), although loans can be renewed beyond this initial term.
  • Borrowers stuck in debt for seven months or more supply two-thirds of title loan business: Single-payment car title lenders rely on borrowers taking out repeated loans to generate high-fee income. More than two-thirds of title loan business is generated by consumers who reborrow six or more times. In contrast, loans paid in full in a single payment without reborrowing make up less than 20 percent of a lender’s overall business.
    • Single-payment vehicle title loans are available in 20 states. Thirteen states allow lenders to offer both singlepayment and installment vehicle title loans, and five states only allow these loans if they are repayable installments.

“Today, we are releasing our fourth report on this market, which is a study of single-payment auto title loans. Our study analyzed nearly 3.5 million loans made to more than 400,000 borrowers over a period of several years. We examined loan usage patterns, with a focus on the repeated use of these loans, how long it takes borrowers to repay, how often they fall behind, how many borrowers default, and how many have their vehicle seized by the lender. ”

“A typical single-payment auto title loan is taken out by a borrower to cover a cash-flow shortage between paychecks or other income. Borrowers who own their vehicle outright can put up their auto title for collateral in exchange for a loan. If the loan is repaid, the title is returned to the borrower. This credit is costly, as it is typically set at an annualized interest rate around 300 percent. Single-payment auto title loans are available in 20 states; another five states allow only auto title installment loans. ”

“Our report also found that few of these so-called single-payment loans are actually resolved with a single payment. These loans typically have a 30-day term, and most borrowers cannot afford to repay what they owe when the time comes.  In fact, our report found that more than four out of five auto title loans are reborrowed on their due date, rather than paid off. Only about 12 percent of borrowers manage to be one-and-done – paying back their loan, fees, and interest in a single payment without borrowing again soon afterward. ”

“Most borrowers resort to rolling over loans through repeated reborrowing, paying high fees each and every time. More than half of single-payment title loans lead to reborrowing three or more times after their first payment is due, and fully one-third are reborrowed six or more times.”

“In fact, auto title lenders typically generate about two-thirds of their business from the borrowers who end up being mired in debt for most of the year.”

“These loans thus present issues that are similar to those we have found with payday loans. High rates of reborrowing drive up costs, with the consumer eventually paying interest and fees that are far more than they expected. Indeed, for a sizable percentage of borrowers, the fees and interest exceed the amount of the initial loan itself. The Bureau has consistently recognized that consumers may need affordable credit to cover emergency expenses. If the product is structured to make repayment realistic, then such loans may help tide consumers over in their time of need. But if the payments are not affordable, those in a financial jam with nowhere else to turn may find themselves on a perpetual treadmill of debt, laden with mounting costs that disrupt the precarious balance of their financial lives. Although these products are usually marketed for short-term financial emergencies, the long-term costs of such loans often just make a bad situation even worse. ”

Title Loan Business

Title Loan Business

Like payday loans, vehicle title loans are made by non-depository lenders. The cost is typically expressed in dollars per $100 borrowed, and annual percentage rates (APRs) are in the triple digits. However, there are several key differences between the two products. While the repayment of a payday loan is timed to coincide with a borrower’s payday or other income receipt, car title loans are due in about a month regardless of the borrower’s pay frequency. In addition, instead of giving the lender a post-dated check or authorizing the lender to withdraw payments from a bank account, a vehicle title borrower provides the lender with the title to her car, which generally must be owned free and clear.5 The vehicle’s value is the primary consideration for the amount that can be borrowed. 6 Although the borrower retains use of her car while the loan is outstanding, a lender can repossess and sell the vehicle to satisfy the amount owed if loan payments are not made on time. Because account access is not required, vehicle title borrowers may not have an account with a bank or credit union. Finally, while payday loans are offered both through storefronts and online, vehicle title lending is typically conducted in storefronts so that the lender can assess the vehicle’s condition.

Link to original CFPB Study on car title loan businesses.

19
Apr

Title Loan Companies are Profitable?

So… you’ve been “googling” for weeks trying to figure out if a car title loan business you’ve been thinking about starting is gonna make money.

Title Loan Companies Profitable?

You see the title loan stores all around you. Maybe you’ve even noticed a few new title loan companies opening up in your city.

Do Title Loan Stores Make Money?

Let’s take a look at some real world numbers:

A title loan customer walked into our California store after “finding” us on her phone. [Yep, it’s important your website look great on a cellphone!]

She had a job and a 2009 Toyota 4Runner with 84,000 miles loaded with equipment. This truck was in fair shape. Low book value was close to $15K. She needed $3000 for 30 days. She had a clear title…

How could we go wrong in this scenario? We couldn’t! In Calif., under the Department of Business Oversight CFL licensing rules, we can charge whatever interest rate we choose to. Of course, as so often stated in our “Car Title Loan Training Manual,” we know what our competitors are charging because we mystery shop them monthly.

So… $3000 at 9% per month is what we proposed. She accepted. For the math challenged – like me – that works out to $270/month in interest for as long as she chooses to keep our $3000.

That’s $270/month for a car title loan month after month until she pays back our $3000 loan principal. So, she could conceiveably pay us $270/month for 8 months, as just one example, $2160 in fees AND still owe us $3000! Let’s not forget we have the title to a truck worth at least $12K in a fire sale!

Now, every State is different. [We have the car title loan State license applications and fee structures for every State these loans are legal in.]

Car title loan fees in the USA range from 3%/month to 25%+ per month!

It doesn’t take much of an imagination to realize that if in California, for example, we have $100,000 “on the street” in the form of car title loans earning 9% per month in gross fee income that equals $9,000/month. If our title oans average $3000, we only need 33 title loans; that’s ONE PER DAY. You think one employee can handle this volume 🙂 Will your city demographics support this?

Car title loan monthly store expenses:

  • Rent = $750
  • Employee (22 days/month at $20/hr all in = $3520 [High]
  • Insurance, advertising, phones, software, licenses, accting, etc. = $500
  • Misc. B.S. = $200/month
  • NET before taxes = $4000/month ABSENTEE OPERATED = $48K/year
California Title Loan Business Startup

Start a Title Loan Biz

Now, this takes care of all your fixed costs. What if, after working your ass-off or an investor came forward, you could put together another $100K to “work on the street.”

$9,000 per month less your variable overhead = roughly $75,600/year + the $48,000/year totals $123,600! Recall that you would certainly not need another employee for this scenario!

So… YES! CAR TITLE LOAN LENDING IS PROFITABLE!

More info? Jer@AutomobilePawn.com 702-208-6736

 

29
Mar

Are Title Loan Franchises Profitable?

Title Loan Franchises Profitable!

Are car title loan businesses profitable? Is buying a title loan company franchise necessary?

Here’s your next installment of our Car Title Loan Business mini-course.

Car Title Loan non-franchise company profits: (See our actual financial metrics below.)

$50,000 in car title loans “on the street.”

Each “Title Loan” principal avg. = $1185.

Total car title loans outstanding = 42

Fees = $25/$100 loan principal. $12,500/month gross fee income.

So… the question you have to ask is “Can I achieve $100,000 “on the street” eventually? In my town? At this rate?

That’s $25,000 per month in gross income plus late fees, revenue generated from other services you offer such as tax returns, bill pay, money transfer, money orders…

Car title loan franchise profitable

Title Loan Business

Following our guidelines on our AutomobilePawn.com website at http://www.AutomobilePawn.com you can hit these numbers with 1.5 employees and run this location from anywhere via the Internet.

Overview of the Car Title Loan Industry

Known as title loans, pink slip loans, title pawn loans, car-title-loans, auto-title, automobile title loans, title loan business, motor vehicle equity lines of credit… Basically the borrower offers the title of their vehicle as collateral for a loan. The traditional car title loan is similar to a payday loan in that they are typically single-payment loans with one month terms. At the end of each term, the car title loan is renewed by paying the fees due. In many cases, the borrower will “pay-down” a portion of the principal due as well.

A title loan is a way for a consumer or small business owner to borrow against the equity in their motor vehicle.

Most title loan customers do not own real estate so their vehicle is their most valuable asset.

Typically these are small loans. The USA average is less than $1000.

Like payday loans, car title loans are marketed as small, quick and easy emergency loans.  The major differences are the car title loan is collateralized (Collateral: assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default) by a vehicle (car, boat, RV, motorcycle…) and, in many states, the maximum loan amount is set higher by statute.

Loan terms vary depending on state or provincial statute as well.  30 days is typical but terms do vary by geographic area.  Refer to the State Laws Sections at the end of this Manual for specific data.

The finance charge is simple interest.

Rarely are there fees, points, penalties, hidden charges, etc.  Rates are commonly in the range of 25% interest on the principal for a 30 day period.

Credit reports are not used to determine whether an auto title loan customer will qualify.  Generally the critical factors are:

  •  Value of the collateral. It must be 100% unencumbered. Or, you can use a portion of the loan principal to pay off any liens in order to “clear” the title. This is a hassle but many car title lenders will “jump through the hoops” when the collateral is highly      valued. Examples? Trucks, RV’s, boats, high-dollar sports cars…
  •  Ability of the auto title loan customer to make the payments.  Contrary to what the consumer protectionists’ claim, we do want our customer to successfully pay us back!

There are two auto title loan models we use:

  • Auto title loan: we take possession of the unencumbered title or “pink slip” to the vehicle.  The consumer continues to maintain possession and drive the car.
  • Auto pawn: we take possession of the vehicle and store it.

This Manual is appropriate for both approaches. The major differences are fees imposed on the borrower and the specific license issued by your state or province to carry out each activity.

Car Title Loan Metrics (Avg. for Trihouse Consulting & Clients)

Median Loan Principal: $1185

Median Car Value (Low Kelly Blue Book): $3285

Median Loan to Value Ratio: 32%

Median APR: 300%

Avg. Number Repos/100: 4.5

Avg. Number Rollovers: 8

Typical Costs for U.S. Borrower

  • Average “low book” value: $2800
  • Average loan principal: $1185
  • Principal and fees due in 30 days: $1481.25 ($296.25 fee + $1185 principal)
  • Average  loan fee: 25% per month
  • Average  total: fees paid (8 rollovers) $2370
  • Total paid in principal & fees (8 rollovers: $3555

NOTE: often additional DMV & Reg. fees. Depends on State/Province.

So… should you buy a car title loan franchise? We say no. Take the $25K to $45K franchise fee and loan it out instead in the form of car title loans. Depending on your State, these funds will put another $2000 to as much as $11,250+ on your top line income statement!

Jer@AutomobilePawn.com

Tactics & Strategies for Title Loan Lenders http://www.AutomobilePawn.com

702-208-6736 [10 AM – 4 PM PDT]

 

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.