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9/22/2017 12:11:25 AM
Posted: 9/9/2005 3:49:16 AM EDT
With all the different professions I've seen represented here I wonder if someone is in this business. If we do have someone here that dose (or did) this, any chance I could pick your brainask you a few questions about the industry via PM?

echo6
Link Posted: 9/9/2005 3:59:17 AM EDT
There is one around the corner from where I live.

From what I gather, the interest rates are such that if you miss a payment you'll never get caught up.

Periodically the lot is filled with repo'd cars on their way to auction.

If a friend was thinking about doing business with one of those joints I'd steer him away from it.
Link Posted: 9/9/2005 4:07:31 AM EDT
At my pawn shop, we do title "pawns" - there is a HUGE difference in a loan and a pawn. Email me if you need info but I'm only familiar with the Georgia laws.

I do know that the interest is astronomical at most places and most will repo your car the minute you are late.

If you only need a small amout of money, say $200 or less, a title "pawn" is as cheap as a finance company, but for anything more than that, see a bank, credit union, finance/loan company or borrow from family or friends.
Link Posted: 9/9/2005 5:16:55 AM EDT
Thanks for the replies so far. FWIW I'm not thinking about getting a loan from an auto title loan company, I'm trying to get some information so I can decide if I want to start an auto title loan company.

echo6
Link Posted: 9/9/2005 6:05:20 AM EDT
The hardest part is finding the vehicles when they default! Some people will hide them, block them in, etc.

You might consider taking a job a a title pawn company or pawn shop to check it out and see if it's for you.

It's a lucrative but high risk business.
Link Posted: 9/9/2005 6:06:05 AM EDT

Originally Posted By echo6:
Thanks for the replies so far. FWIW I'm not thinking about getting a loan from an auto title loan company, I'm trying to get some information so I can decide if I want to start an auto title loan company.

echo6



That might depend on your conscience.
Link Posted: 9/9/2005 6:56:16 AM EDT

Originally Posted By Brohawk:

Originally Posted By echo6:
Thanks for the replies so far. FWIW I'm not thinking about getting a loan from an auto title loan company, I'm trying to get some information so I can decide if I want to start an auto title loan company.

echo6



That might depend on your conscience.



Unless you've been in the business, you don't have a clue.

MOST of the people we deal with are people that can't manage money and therefore can't obtain cash from any other source such as a bank, finance/loan company or any other place.

I haven't borrowed money in years, but my understanding is that most banks won't loan on older cars and won't do a car loan for less that $3000 or so - any bankers out there feel free to state facts on this.

These people pawn their car titles as a last resort before their power/gas/water/car insurance, etc is cut off. They have no where else to go except a title loan/pawn place.

It IS a high risk deal because if the car is wrecked, towed in for a DUI, loses an engine or transmission, IF we can find it, it's not worth fixing most of the time and we can't take these people to court because most don't own anything - not to mention the liberal judges to contend with.... We just lose on those.

You mentioned something about "conscience", We work with most of these people far more than ANY of the other title people and have done well on some but lost our shirts on others. The ones that pay hopefully make up for the ones that don't and at at the end of the month, we're not "ahead" as much as you would think.

Like I said, it's a high risk business......
Link Posted: 9/9/2005 7:02:08 AM EDT
I've seen some that have "Predatory Opportunist Vulture" written all over them. They take advantage of people who are in a tight spot or lack sense/money management skills.

If you aren't in that category and run an ethical business don't take offense, because that perception obviously wouldn't apply to you.
Link Posted: 9/9/2005 9:12:38 AM EDT
[Last Edit: 9/9/2005 9:14:23 AM EDT by echo6]
In doing reasearch regarding this I've found the rules seem pretty straightforward and the Lic. required not to hard to get.


Effective 10/01/00, Chapter 537, F.S., the Florida Title Loan Act, requires licensure by the Department of Banking and Finance to act as a Title Loan Lender.



Under the Florida Title Loan Act, a title loan lender may charge a maximum interest rate of 30 percent per annum computed on the first $2,000 of the principal amount, 24 percent per annum on that part of the principal amount exceeding $2,000 and not exceeding $3,000, and 18 percent per annum on that part of the principal amount exceeding 3,000.



The maturity date of the title loan agreement, which shall be 30 days after the date the title loan agreement is executed by the title loan lender and the borrower.



A title loan agreement may be extended for one or more 30-day periods by mutual consent of the title loan lender and the borrower. Each extension of a title loan agreement shall be executed in a separate extension agreement each of which shall comply with the requirements for executing a title loan agreement as provided in this act. The interest rate charged in any title loan extension agreement shall not exceed the interest rate charged in the related title loan agreement. A title loan lender may not capitalize in any title loan extension agreement any unpaid interest due on the related title loan agreement or any subsequent extensions to that title loan agreement.



Taken from www.fldfs.com/OFR/licensing/titleloanco.htm

Interestig that the state changed the rules in 2000 and before 10/01/00 the max APR that a title loan company could charge was 264% per annum.

IMHO 18% to 30% is plenty to make a decent return on your investment but Holy Crap 264% ?
How did these people sleep at night?

echo6
Link Posted: 9/9/2005 9:21:44 AM EDT
[Last Edit: 9/9/2005 9:21:55 AM EDT by bigscrun]
Link Posted: 9/9/2005 9:30:07 AM EDT
It's a sleazy, predatory business ranked right with check cashing shops.
Link Posted: 9/9/2005 9:36:29 AM EDT

Originally Posted By bigscrun:

Originally Posted By daddy_steve:
The hardest part is finding the vehicles when they default! Some people will hide them, block them in, etc.

You might consider taking a job a a title pawn company or pawn shop to check it out and see if it's for you.

It's a lucrative but high risk business.




Nope. I sell GPS tracking units that are batteried powered, (4 aaa) and the size of a packs of cigarettes. We hide those bad boys everywhere.



The GPS tracking was an angle that I had already thought of, but not yet researched.
How much do the GPS tracking units cost? What’s included- installation, monitoring, removal, etc?

echo6
Link Posted: 9/9/2005 9:36:51 AM EDT

Originally Posted By AeroE:
It's a sleazy, predatory business ranked right with check cashing shops.




Pray to whatever kind of god you believe in that you never get down and out and desperate for cash since you don't believe in this type of business. Not all businesses like this are the same.

Of course, you probably don't shop at pawn shops either since they're basically the same...
Link Posted: 9/9/2005 9:42:08 AM EDT

Originally Posted By echo6:
Interestig that the state changed the rules in 2000 and before 10/01/00 the max APR that a title loan company could charge was 264% per annum.

IMHO 18% to 30% is plenty to make a decent return on your investment but Holy Crap 264% ?
How did these people sleep at night?

echo6




I seriously doubt that 18-30% would work out. There are MANY things you are not taking into account. How many just out and out default and leave town only to leave you holding a piece of paper? What kind of condition is the car in? How much is it *actually* worth? Since you are dealing with people that have money problems, I seriously doubt that routine maintanance, etc. has been done or ever been done to the vehicle. I would venture a guess that most of the vehicles you repo are better candidates for the lunch box factory than for the car lot. In other words, there is a VERY high risk in doing this kind of "work."

BTW, I do NOT do this for a living and NEVER will.
Link Posted: 9/9/2005 3:11:44 PM EDT

Originally Posted By daddy_steve:

Originally Posted By AeroE:
It's a sleazy, predatory business ranked right with check cashing shops.




Pray to whatever kind of god you believe in that you never get down and out and desperate for cash since you don't believe in this type of business. Not all businesses like this are the same.

Of course, you probably don't shop at pawn shops either since they're basically the same...



I just said they are sleazy and predatory. I believe in everyone's right to get ripped off while their eyes are wide open.
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