Quote:
Originally Posted by crockett
Back when I got my dealers lic in FL, I had to take a class that was required by the state. One of the others in the class had one of these title loan companies and had to get a dealers lics because they ended up with so many cars due to people defaulting on the loans.
So you have people getting a loan based on a percent of what the car is worth, mostly likely getting charged a processing fee of some sort, paying interest of 30% and then many of them still losing their cars.
Yet you can't figure out how they are making money? Keep in mind many of these places also do payroll loans which is yet another shady as fuck business.
|
Payday loans are wonderful. 390% and all of that... and an owner told me less than 5% default and he sells that paper for a little bit of money back. That is an awesome business.
As I understand title loans in FL - they have to "use a licensed dealer" to dispose of vehicles they suck up.... so I don't think they're required to BE dealers any more. I guess you mean because most states force a dealer license on you if you want to sell more than X times per year?