How to Start an Auto Title Loan Business

How to Start a highly profitable Auto Title Lending business.   

Powerhouse Course 4

  A step by step guide to help you succeed in an exciting, and profitable car title loan business.  A personal loan business you can easily start with a small amount of capital and zero employees. 

Created by: Miro Posavec 

Auto Title Lending Defined:

The Sub-prime (credit score less than 600) consumer has few options to obtain credit.  Because this consumer has high levels of default, the options that ARE available to them need to be EXPENSIVE.

By expensive, we’re talking about 12-30% interest charged per MONTH.  As an Auto Title business owner, you should be able to make between 8-22% per MONTH on your money.  I’ve worked with operations that started with $50,000.00 and by the end of the year, they were bringing in $14,000 per month in fees. 

Here’s how it works in the practical terms: 

A customer walks into a store (or visits a website).  They PLEDGE the title of their car (free of any/all liens etc) as security for a loan.  The AutoTitle company has a contract that the customer signs, and they hold the Title of the car until the loan is satisfied.  IF the customer fails to PAY, the car gets repossessed, and sold (usually at auction).  The proceeds of the sale satisfy the debt (plus fees, expenses etc), and the customer receives any surplus from the sale (providing there is a surplus).

It’s very simple.

Why would a consumer do this loan?  Because it’s fast, easy, and often they have few options to obtain a big chunk of $$$ on short notice.

There is significant opportunity in providing lending to this demographic.  The most common loan options for this market are:

Payday Loans are an option, but are also very expensive, and don’t usually provide a bigger loan (secured with only a signed contract and an authorization to withdraw from a bank account).

Pawn:  Taking a valuable item into a pawn shop and obtaining a loan against that item.

Depending on the State, AUTO pawn is the only option.  The biggest challenge to the consumer if using the AutoPawn service is the loss of possession/use of the vehicle during the loan duration. 

Title loans work for anything valuable that has a title.  It can also be a boat, RV, trailer, or motorcycle.  Although a car is the most common choice.  As an operator, you want to take great care in lending on a recreational asset.  The values are sometimes subjective, and not everybody needs/wants an RV or boat. 

As a loan operator, placing a lien on the customers’ car has real value.

1:  You can offer BIGGER loans than you could with a Payday Loan product.  This allows you to do MORE loan business, while dealing with far fewer customers.  The average AutoTitle loan is $1200.  The Average Payday Loan is $300.00.   In some areas, AutoTitle transactions can be as high as $50,000 for a very high value car. 

2:  Lower levels of defaults.  If the customer fails to pay a Payday loan provider it doesn’t really change their life in any way.  However, if you don’t pay the AutoTitle loan guy, you’re WALKING.

3:  The car has VALUE.  The car is usually the most valuable asset the customer has.

4:  The car is easily sold.  Providing you’ve used sound judgment in your portfolios, a late model car in decent condition is a commodity.  It can be easily converted into cash by going to auction, or even a craigslist posting.  Not quite as liquid as GOLD, but more liquid than a rare stamp, or other esoteric collectable item.


Advanced Payday loan business course

Advanced PDL Course

That’s what this course is about:

HOW to setup, and operate an AutoTitle Loan business.  Either as a stand alone service, or as an addition to an existing operation.



Bottom Line:  AutoTitle Lending is an excellent HEDGE operation if you’re already in Payday.  It makes sense for a small operator, or a HUGE firm.


The scope of this course:

We’re going to focus on how to create, implement and successfully run an AutoTitle lending operation.  If you’re already operating, we hope to show you some new opportunities and ways to safeguard your business.


We’re including everything you need to get started.  Sample Contracts, forms, checklists, and many resources to get MORE information.  This is a turnkey package.   You’re going to get the benefit of a FRANCHISE without paying the fees.  But if you want to pay us a percentage?  That’s awesome too.



We’re providing a framework based on our experience in dozens of operations.  Large and small.  From pure storefronts, to ONline only lenders.  We’ve done startups, and transitions from storefront.  We’ve worked with companies that processes 1000+ leads per day.  (that’s a LOT).

This is a proven blueprint, and we’re providing specific information on how to get started, and if you’re already going, strategies to keep you from losing buckets of money.

You will find checklists and resources to get you going.  As well as contacts with different vendors that are proven in the industry.


The objective here is to get you started.  Gently.  To make intelligent choices in regards to setup, and help you avoid the many opportunities there are to lose your entire pool of capital.   If you’re looking to make a large entry into the market, at least with this resource you can ask the right questions.

Within this course, I’m going to caution you over and over about how quickly you can lose an obscene amount of money.  If you get careless it will cost you.

If you’re new to the industry, you’re going to have to change your thinking.  First, your asset is not your receivables.  This is completely against conventional banking and finance.  You are in the business of collecting fees.  The On-the-street numbers, while certainly important are not as important as the number and quality of your steady customers.

If you’re already a storefront operator.  You have an advantage, as you are probably already licensed in your state.  You have a familiarity with this business.  You can leverage your existing client base, and move into online lending on a step by step basis.  However, the ONLINE world is very different.  You will be trying to collect money from people that you’ve never seen or met.  The BAD debt rates will shock and AWE you.  You will run home like a little girl crying to your mama.  MOST store owners that have wandered online have run been CRUSHED.  Be smart.  Get prepared.

After that inspirational pep-talk? Let’s get started!!

Table of contents:

1:  Auto Title Lending defined:


2:  The scope of this course.


3:  Compare online vs storefront, and outline Auto title lending models


4:  Your job description as Owner/Director.

5:  The power and profit of being professional.


6:  The location.


7:  Store opening Checklist


8:  Online presence


9:  Physical location appearance


10:  What is TLO?


11:  How to record everything on video and audio.


12:  How to setup and use the tools of Google.

13:  How to shoot, upload and display a video.


14:  The magical powers of ACH.


15:  Loan Management Software.

16:  Looking into the bank account.

17:  The four laws of Auto title loans.


18:  Underwriting!


19:  Procedures for Giving an AutoTitle Loan:


20:  Car inspection checklist


21:  How to inspect cars if you’re on the internet.


22:  Starting script to answer phones, and in person.

23:  Installment Loan.


24:  Disclose everything.  Especially your rates.


25:  Co-signor.

26:  Income Tax Prep service.


27:  Collections.


28:  How do you repo?


29:  Do you Repo?


30:  Online lending definitions.


31:  Understanding Lead providers.


32:  How deals flow in an online system.

33:  What about online loan operators:

34:  How to find talent.

35:  Should you have store managers?

36:  A quiet store becomes solitary confinement.


37:  Employee supervision, training, and motivation.


38:  CSR Job description.

39:  Stop getting in the way.


40:  How to do a mailing, and why 6 is the most important number.

41:  Facts about marketing methods and tools.


42:  Testimonials.

43:  Client Survey sample.


44:  Questions that I would ask you, if you hired me to consult on your business.

45:  Know your customer and know your numbers.

46:  17 Marketing ideas to get your numbers on the street up right now!


47:  Notes on Web design


47:  Sample of letter to send asking for referrals from customers.


48:  Samples of contracts and forms.


49:  State by State quick summary of laws/ regulations.

Advanced Payday loan business course

Advanced PDL Course

Click here to get the Powerhouse Course 4


Payday Loans, CFPB, Trump Divorce Update

By: Jer Ayles-Trihouse Consulting. Get ready my friends! Small dollar  lenders [payday loans, title loans, micro-lenders, Fintech…] will likely experience a renaissance as early as 2017. The CFPB structure has already been determined to be unconstitutional. Congress cannot digest the ability of the CFPB to get funding directly from the Federal Reserve Board – really tax payer money – thus circumventuing congessional purse strings and oversite. And today, the second in command of the payday loan CFPB attack dogs took a drubbing from the Republicans who will likely determine the fate of the CFPB. Will the CFPB have ANY teeth left? Unlikely…

GABE RUBIN over at Morning Consult wrote an exciting piece describing a fractious conversation that took place between President Trump’s potential pick for head of the CFPB [Randy Neugebauer (R-Texas)] and a CFPB staffer (Silberman).

The bottom line is that these CFPB bureaucrats, who are determining the spectrum of financial products and services Americans have access to ADMITTED TO NEVER SO MUCH AS VISITING A PAYDAY LOAN STORE IN THEIR LIVES!

Jer Trihouse Consulting

Jer Trihouse

Meanwhile, the CFPB is proposing regulations that have, and will continue, to destroy jobs, drive entrepreneurs into banktruptcy, empty store-fronts thereby increasing commercial property vacancies and crushing commercial property valuations, while MOST IMPORTANTLY denying consumers the right to choose what financial product BEST SERVES THEIR NEEDS!

As Gabe reports it, “The hearing started off testily, with House Financial Services Financial Institutions and Consumer Credit Subcommittee Chairman Randy Neugebauer (R-Texas) decrying the CFPB’s “paternalistic erosion of consumer product choices” in short-term, small-dollar lending.”

‘It got worse from there. “What the heck is a scholar on payday lending? Is it someone like you, who has never been to a store?” Rep. Roger Williams (R-Texas), asked Silberman to rollicking laughter of his fellow Republicans on the committee.’

[Gabe wrote that Silberman had conceded earlier in the hearing that he had not personally been to a payday lender storefront, though his staff had.]

“It would be great if you’d back off a little bit and realize that consumers know better,” Williams said.

Are you ready to jump into the business of making money by lending money? Get started! Learn the ropes! Get our Book. Schedule a call! It’s going to be fun times for those few entrepreneurs who have access to a few bucks and some guts!

Jer and Miro at 



For Lenders, There’s Dancing in the Streets Again

Lenders Dancing in the Streets Again!

How to Make Money by Lending Money

By Miro Posavec. A few months ago I wrote an article called, “There’s PANIC in the Streets.”

Let me start by saying that I don’t care too much for politics. I care about what happens to my country, my businesses, my family, and to me. I believe that’s true of most people.

And these past few years have shown how much damage can be done by public servants who don’t understand that the public has NEED of our payday and installment loan services, and by limiting options, they’re making life HARDER for those that most need every available choice.

With the support of the current administration, the CFPB has been attacking our industry on multiple fronts. Through negative press, discontinuing ACH transactions, limiting rates/ fees, and squeezing our banking partners.

How to start a payday loan businessIt was ugly. And all the projections were that the Democrats would win.  We lenders were all getting ready for the worst. Our consulting clients weren’t calling about methods to grow or expand their businesses. They were calling to get out, or wondering how to survive in such a hostile environment.

As always, we advocate good business practices, taking care of customers, and having a variety of services and revenue streams. This is true if you’re one location or 10,000.

If you’re lending money online, we recommend a few brick and mortars, and if you’re a store front, we advise dipping your toes into the online world. Diversity gives you power over adversity.

Moving forward, it appears we’re going to have a government that’s friendly to our industry. It looks like the CFPB is going to be “de-clawed,” and we’re going to be able to grow our lending operations.

We’re witnessing loan portfolios and enterprise valuations going up while our consulting clients are calling us with different questions. Now, we’re getting more of, “how do I grow?”, “I want to capture market share…”

Regarding “the business of lending money to make money,” here’s what we’re working on for you right now. 

We’ve created a Google Local solution. If you don’t know what I’m talking about, you’d better pay attention. Most consumers now look for a local business on their phones. And that means they do a google search.

Let me be clear. Our “Google Local Solution” is probably the most important marketing tool for your business TODAY. Here’s why:

  • Your customers are in their cars, driving towards a solution to their financial problem.
  • This scenario isn’t a fantasy or brand building exercise.
  • This is the most effective way to present your offer to people at the very moment they are about to buy your product or service.
  • We know the payday loan space! We own stores! We run Boot Camps. We talk and meet and counsel both successful and starving lenders of money EVERY DAY from all over the USA and MANY countries!
  • We’ve been doing this since 1998 AND  STILL GOING STRONG!
    • After all, how many years have you been reading our stuff 🙂 You can admit it! Even you vendors; loan management software providers, ACH processors, credit reporting agencies, lawyers, the staff of Congressman and Senators, OLA, CFSA, and FISCA members and staff, reporters, tribe leaders, call center providers, consultants… EVERYONE of you have invested in at at least ONE of our “Payday Loan Bibles!” This isn’t braggadocio; IT’S A FACT! And you dear reader know it]
  • It doesn’t get any better than this.

There are hundreds of directories, and services that promise to get you onto page one of Google’s search results. But Google is too smart to be played. There are no shortcuts, and no substitute for quality content.

Google has recently changed all of their algorithms, and there is no magic bullet that’s going to guarantee your top spot.  You’re probably getting a dozen sales calls per day promising control of Google.

Over the next week or so, we’re releasing an UP TO THE MINUTE Google local solution for lenders.  (Some changes came down just in the past 2 weeks).

So… we’re offering you three levels of participation in our new Google Local Program specifically targeted to lenders and rellated financial services businesses.

Join our waiting list! Click here to Sign up  As your reward, you’ll receive free our #1: “The 5 Things You Must Have on Your Google Local Listing for It to Be Effective.”

  • #1: “The 5 Things You Must Have on Your Google Local Listing for It to Be Effective.” (Free! And you can use our checklist against your current setup to make sure that you have it all covered)
  • #2: A Step-by-Step Video Course that will walk you through all the steps you need to make sure your Google Local setting is the best it can possibly be. You can delegate the tasks to your own people.
  • #3: Done for you solution. We have staff that’s been researching and developing this program for the past year. Since we already have our regular consulting clients on the schedule for this, we can get you on the calendar for implementation and review.  (Cost: to be determined by number of locations)
  • Apply to be considered here: Get Me On Google!
  • In closing, on behalf of Jer and myself, we wish you all the best for 2017.  May you have great health, prosperity, and enjoy the ride in this new year!
By Miro Posavec: Co-Founder
  1. Apply to be considered here: Get Me On Google!