These are AVERAGES based on 274,000 “single payment” car title loans and refinances. (No installment lending)
- Assumes $50,000 “on the street” in car title loans.
- Average loan principal: $992.00
- Dollars per $100 loaned: $23.73
- Percent of borrowers who refinanced: 36%
- Average number of refinances per borrower: 4.37
Average loan fees earned per transaction: $235 per car title loan per month
Total fees earned over life of average loan: $1027.40
Average number of loans on the books each month: 50.4
Monthly Fee Income: ($50K on the street)$11,865
Other Income (late fees, remarketed leads, tax prep, scrap gold, bill pay…): $ 1,200
Total Monthly Gross Income: $13,065
Sub-prime consumer reporting: $63
Voip Phone: $45
Website hosting: $30
Lenders License & fees: $130
Insurance + Business Policy + legal: $150
ADT Security: $30
Bad debt: $209
Office Expenses: $130
Lending Management Software $135
Bldg Repairs and Maintenance: $45
Travel, Meals & Entertainment: $150
Repo fees: $327
Total Expenses: $2,573
Net before taxes: $10,492/month
* Assumes owner/operator provides labor
* Your task? How much you charge borrowers in your state/province!
* Startup costs vary. Usually between $5,000 & $15,000 (Rent, signage, deposits, licensing…)
* Your results maybe better or worse. Who knows?
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