Every industry has it’s little secrets and this is one of them. You are about to learn some interesting tidbits about the title loan industry and maybe you will see why Max Cash Title Loans is critical to keeping things “in check”. Brace yourself. you may not like what you are about to read:
APPLYING ON SOME SITES IS REALLY INVITING SPAM OR WORSE
Max Cash is a consumer resource and a broker, not the lender. We choose qualified and stable lenders with good track records and only ONE application per lender – not several. It’s us and our lender and our lenders only use the information for themselves. This is more the exception then the rule and here is why:
Leads are big money nowadays. So big that some industries (especially colleges and insurance sites) are really just sites to get your information. They sell that application information to aggregators and lead buyers who sell it again to several companies all automatically and all at the same time. Try to imagine getting 10 responses from one application and all from different pushy companies! Wait… they are not done yet… because your information may still have life a few months down the road so they sell AGAIN your information to people buying email lists and guess what… you are suddenly getting spam! Think it’s over? Nope! They also then sell it AGAIN to people who send out mailing lists and you get junk mail! All from that little application.
You will NEVER get that experience from the Max Cash Title Loan Information form found on our site. We don’t play that game. Although we work with multiple lenders they do NOT get your info until you tell us which one you want to work with. To do this trick we work with the highest rated company from Consumer Affairs called TMG Loan Processing. We just use the ONE lender who can help you that you want and we DONT EVER sell your information to the “wheel of horrors” spam tree companies. Really help you… and that’s it.
YOU MAYBE DEALING WITH A 3rd PARTY PLAYING LIKE THEY ARE THE LENDER
Some title loan companies online are middle men for larger companies. They are “agents” for the main lender who is really the company or person who funds the loan. Is this wrong? Maybe yes because you never know really who you are dealing with unless they are a licensed broker or a licensed lender. You can usually spot these companies because they won’t give you a price over the phone or they won’t get you in touch with the lender if you need to. Simply ask if they are the company that is lending the money themselves or if they are a broker. They will tell you if they are legit. Brokers are awesome companies but make sure that they are licensed so that there is someone looking over them.
To prove we are legitimate… We posted our brokers license. Ask them to produce theirs. If they can’t run away.
2017 SCAM WARNING – IMPORTANT TO READ THIS PART!
Actually this started in 2016. Pieces of garbage callers contact you and say that they approved you for a title loan. They purchased the info like we stated above. They are REAL GOOD at making you believe that in fact they are the title loan company. Then it happens… they ask you send them money as an application fee or something like that. Some will even ask to have to you send more personal information to them before the offer and request for money (which actually is normal in getting a car title loan). REAL LENDERS AND BROKERS NEVER and we mean this strongly NEVER EVER ask you to send them money! A loan is a loan and you should not be asked to send money to them.
True story: We recently got a call from a person asking us for help. He stated that he sent $250 “application” fee to a company promising him $4500 at a real low interest arte. He claimed the company said to use our website and our loan processor’s website to validate who he was but in fact that was garbage because he was neither. They sent him two checks. BOTH of them was from bogus banks and non cashable. He asked what we could do to help and we would him to call the police. He did get a loan from us after trying to help with the thief company. We could not help him with the past but we did help him with a REAL car title loan.
TELEVISION MAY FOOL YOU
You have seen the commercial of the puppet talking about getting a loan? Good company (actually pretty big and reputable) but they are a lead generator and they rake in millions of dollars selling your information. Lenders pay them for that information but so do others. They are not alone. Some spend millions of dollars but they make hundreds of millions doing it.
Now is that a bad thing? Not really but there are laws coming out now that these companies MUST disclose to the consumer that they are reselling the information and more importantly how it will be used. Privacy is important here.
YOU COULD GET MORE MONEY FOR LESS COST:
The amount of your loan has LOTS of wiggle room. It all depends on who is the person who is dealing with your loan. Customers walk out the door sometimes with totally different interest rates for the same amount loaned! Why? Because they negotiated! They asked for a point to be shaved off and that might mean hundreds. When someone says they can’t, they can. They just don’t have the authority to do it but someone in that office does. After all, you are one click away from their competition.
So here is how your conversation should go:
- THEM: We can loan you $4000 at 9% per month
- YOU: That won’t work for me. I am looking for something like 7% per month
- THEM: Not sure if we can do that.
- YOU: Well I will just have to look around and get back with you unless you can do that.
- THEM: Let me ask my supervisor…. ok she said go ahead at 7%
- See? It’s just that easy.
Cha-Ching! You just saved hundreds of dollars.
Also the amount of the loan varies FOR THE SAME CAR! It depends on what method they are using. Get this… you can use Retail, Wholesale, Auction, Trade-in and companies use Blue Book, Black Book and Mannheim (three different companies to evaluate worth) and even one more has it’s OWN rating system. THEN then company can use any percentage they want of those prices! Example… lets say you had a 2004 Lincoln Towncar with 150000 miles in fair condition. Using Kelly Blue Book your car is trading in at $4,538. Same car… to a private party $6, 678! Okay so let’s use the low price… take that number and multiply it by 40%. Your loan would be $1815. Same car, same price at 60%…$2723!
So what you just learned is that the method they use, the percentage they choose and they way they do it is ALL UP TO THEM. So if you ask for about 10-15% more than what they offer… they usually will say okay!
[HINT] Use an industry term on them to fish this out… Ask them what the LTV is. LTV = Loan to Value. The higher the number the more money you will get. Some will do 50% while other will do 85%. Big difference…same car. If they have a high LTV you won’t be getting more money then what they said but if it’s low, they have room to offer more money if you can afford to repay it.
SOME COMPANIES WANT YOU TO DEFAULT
The larger title loan companies do NOT want your car. Worse case for them. They will get so much bad press out taking people’s cars that they will never grow their business… and that is why the largest companies are large… they work things out with slow paying customers.
The truth is any company that plans on staying in business for a while hates having to repo. Worse thing to do. They don’t want your car and they don’t want someone screaming and crying at them. The reps who handle this in their repo department actually can get PTSD from all the distressed people they deal with everyday. Turnover is high and the job is ugly. It ruins your week and you end up feeling like dirt even when you had no other choice.
BUT. some companies LIVE and wait and look forward to your default. We have seen some small title loan companies owners driving their “prize” repo. Here is how to sniff them out:
So how do you spot them? Easy! Look to see if they have “interest only” loans. This means you are only making payments each month on the interest only and then at some point you have to pay it all back in one lump sum! How many people can do that? Not many.
“Interest only” title loans are very dangerous. They make the payment look real low which attracts people. If you are a company doing that, you may not want to take the clients car but you may trap them into a situation they cannot get out of and you know it. Switch your system to fully amortized loans (some payment goes to the interest while the rest goes to the principal amount) and finally get a good nights sleep. Make sure people can afford to repay the loan and don’t take out more then what they can pay back.
ONE FOR THE TITLE LOAN COMPANIES – THIS ONES FOR YOU
Customers… yes you. The ones who have title loans out. If you are planning on defaulting on the loan (and statistics show that the first payment missed usually means you will default the loan) then don’t cry when the title loan lender actively tries to get you to pay or recover the money. If you are the type of person that gets a credit card and never pays the first bill once you rack up the charges or someone who rents a car only to steal it then you might just deserve the barrage of calls to fix this. In fairness to the lenders. borrow what you can repay… never borrow more than what you know you can deal with… treat title loan lenders like they are your friends and they will treat you with respect and don’t expect all lenders to be shady. They will soon go away and the remaining high class ones will sadly have to deal with the old guys bad reputations.
If you have been paying the monthly amount is too steep… many title loan companies will buy out the loan of the other and at a lower rate. We can help with this refinance a title loan issue because the ability to repay any loan is critical to getting the loan itself.