Automobile title loans are stupid in Florida

[MrMaxwell]

"The maximum interest rate shall be 30 percent per annum, computed on the first $2,000 of the principal amount as computed from time to time; 24 percent per annum on that part of the principal amount as computed from time to time exceeding $2,000 and not exceeding $3,000; and 18 percent per annum on that part of the principal amount as computed from time to time exceeding $3,000 and not exceeding $25,000."

I wouldn't give someone a title loan at 30% if it was ice cream day in hell. That's an outrage. How in the world do the lenders stay in business?! Things get dumber every day in this country.

"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. "

[Due]

They earn 30% per year and you don't know how they stay on business ?

[MrMaxwell]

Originally Posted by Due

They earn 30% per year and you don't know how they stay on business ?

This is title loans
They're for people who can't get a loan ANYWHERE

The lender deserves far more for extending this type of credit to someone. Far more. As far as I know most states allow them to charge that much in a MONTH.

[Supz]

Youre far out there Maxwell. Do you know how bye here pay here lots work in Florida?

[L-Pink]

Lets see, 30 % a year interest on a car they charged 50 to 100% more for than they paid. I think they got it covered.

[purecane]

Remember that a title loan is not risky for the lender but it may be very risky for you. Nice research.

[DBS.US]

It cost to much to be poor

[MrMaxwell]

Originally Posted by Supz

Youre far out there Maxwell. Do you know how bye here pay here lots work in Florida?

I'm not talking about that, at all

[MrMaxwell]

Originally Posted by L-Pink

Lets see, 30 % a year interest on a car they charged 50 to 100% more for than they paid. I think they got it covered.

I'm not talking about that...

[JFK]

Originally Posted by MrMaxwell

I'm not talking about that...

What, are you talking about then ? splain

[Supz]

Originally Posted by MrMaxwell

I'm not talking about that, at all

It really doesnt matter. In any state. There is a maximum interest rate you can charge people. Buy here pay here is much more risk then what you are talking about here, and they can only charge STATE MAX %. I was a Finance Manager for a large auto group in South Florida. A few reasons for this are. 30% is still astranomical. It managed the interest rates so people dont get ripped off. In the beginning of financing cars. You can buy the money from the bank at 3% and sell it to the customer at 30%. You cannot do that anymore. Based on the model year of the car you can make anywhere from 3% down on the actual interest. and this is mainly on low risk loans. On higher risk loans the seller only makes 1.5-2% of the actual interest.

30% is a very very high interest rate. Almost loan shark rates. You also have to have it at a point where people are going to purchase things. Charge people 100%. They will stop buying, and no buying means no selling. No selling means no business.

There are many reasons why the government regulates interest rates and why there is a credit system. The mortgage crisis should have taught you more.

[MrMaxwell]

I am talking about TITLE LOANS like say some moron is driving around in his automobile. He owns the automobile. It's his. So let's say genius needs some drugs or food and his credit sucks, he can't get a loan anywhere because he never pays anything. So he goes and gets a TITLE LOAN. He walks into this hellhole where most people get payday loans and they write him a TITLE LOAN against the value of his automobile.

See.

[MrMaxwell]

^Like this

[BIGTYMER]

Brush your teeth..

[MrMaxwell]

Originally Posted by BIGTYMER

Brush your teeth..

Now you're up to copying things I said
I know you don't like me but be original would you

[MrMaxwell]

Originally Posted by Supz

It really doesnt matter. In any state. There is a maximum interest rate you can charge people. Buy here pay here is much more risk then what you are talking about here, and they can only charge STATE MAX %. I was a Finance Manager for a large auto group in South Florida. A few reasons for this are. 30% is still astranomical. It managed the interest rates so people dont get ripped off. In the beginning of financing cars. You can buy the money from the bank at 3% and sell it to the customer at 30%. You cannot do that anymore. Based on the model year of the car you can make anywhere from 3% down on the actual interest. and this is mainly on low risk loans. On higher risk loans the seller only makes 1.5-2% of the actual interest.

30% is a very very high interest rate. Almost loan shark rates. You also have to have it at a point where people are going to purchase things. Charge people 100%. They will stop buying, and no buying means no selling. No selling means no business.

There are many reasons why the government regulates interest rates and why there is a credit system. The mortgage crisis should have taught you more.

The mortgage crisis taught me that the government regulation caused the whole thing by encouraging (forcing) lenders to make bad paper to morons with racial issues and then raped us ALL to fix it for the big guys. Hell, even the part of the bailout money that was supposed to help individuals still did nothing. My grandmother fought through a "loan modification" for FOUR YEARS and they ended up cutting her rate a quarter of a point. YaY.

To all of the morons who bought in hyper inflated markets and whine that they can't keep their 400k house while making 25k because they used some exotic financing they can't understand and didn't even read and people who bought "investment" property that doesn't cashflow and other morons who borrowed all of their "equity" out and lost their ass--- fuck them. I hate the government but they didn't force these retarded morons to do any of that shit.

Buy here pay here if done right isn't all that risky. You can get a down that is very close to what you have in the vehicle. The state limits interest because people could care less what the price/interest is- they want to know "UH WATZ DA PAYMENTZ" ..... in MO they were charging OVER 100% annual interest and morons were still hearded up in a line to buy

With title loans, 30% annual limit is insane. In most states as far as I know they're charging at least eight times that. We're in agreeance about 30% being a ridiculously high rate on an automobile purchase loan, though. Most beat on pete finance lots I've been on just charge full retail (a huge rape price on older automobiles) and "zero interest".

[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.

edit.. also is FL you can't charge interest on "buy here pay here" sales. The payment is based solely on the price of the car there is no interest involved and legally the cash price is supposed to be same as payment price. That's a state law but of course it's not often followed as dealers always jack up the price if they are doing buy here pay here.

[MrMaxwell]

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?

[MrMaxwell]

Title loans are also a great business in states that are not florida, apparently. I have a small title loan out on an automobile in Kansas and the interest is 240%. It's a straight 20% per month, very similar to the way a pawn ticket would work. Now that is an awesome business. Not skater boy awesome, but like when the hand of god made breasts awesome.

[epitome]

Why do people even entertain him? He'll disappear, take some adderall and be back with a hundred new things he doesn't understand in a week.

[MrMaxwell]

Originally Posted by epitome

Why do people even entertain him? He'll disappear, take some adderall and be back with a hundred new things he doesn't understand in a week.

Tell me how I don't understand all of this, again... tough guy
Big bad 24/7 GFY hater patrol
I told you
Go hate someone successful
You "failin' at hatin'"

[JSWENSON]

Originally Posted by MrMaxwell

Tell me how I don't understand all of this, again... tough guy
Big bad 24/7 GFY hater patrol
I told you
Go hate someone successful
You "failin' at hatin'"

Your whole premise is pretty dumb. 30% is high but expected for high risk. The part you are missing is that they offer $2000 on a $8000 car at 30% so they get guaranteed money. 30% interest that compounds for months on end or a car worth multiples of what they loaned. They are fine.

[MrMaxwell]

Originally Posted by JSWENSON

Your whole premise is pretty dumb. 30% is high but expected for high risk. The part you are missing is that they offer $2000 on a $8000 car at 30% so they get guaranteed money. 30% interest that compounds for months on end or a car worth multiples of what they loaned. They are fine.

They're still being robbed by the 30% limit because these idiots would pay far far more. Who in the world would want to loan money at 30% when they could loan it out at 200%+++ in another state?

[MrMaxwell]

http://www.responsiblelending.org/ot...-by-state.html

[Penny24Seven]

30% and banks charge 2% to 12% so who is making more on a loan? Money is money dude, who cares what another state is doing. It is the law and they bank big time. I know this for a fact.

[MrMaxwell]

Originally Posted by Brian837

30% and banks charge 2% to 12% so who is making more on a loan? Money is money dude, who cares what another state is doing. It is the law and they bank big time. I know this for a fact.

Banks are lending to white people who would have a heart attack if they were late on a bill "um like evar".. when 90% of what they could be making is not there, they're still making money but nowhere near what they should be.