Title (Auto) Loans in the USA
In the modern world, auto (title) loans are popular in many countries. This business was first born in the United States in the fifties of the 20th century. It is actively developing and has become widespread in most countries.
How did auto loans appear?
The first such auto loan company was founded by entrepreneur E. Dorian and originated in Massachusetts, America. The owner organized a large car parking where any car owner could park a car on time. The amount of “borrowing” depended on the length of such a stay: more time – more quick easy loan amount. The only pitfall: Dorian could use all the cars while they were parked on its territory.
In the 60s, the government of America began to issue licenses for such activities. This auto loan service is widespread. Due to the fact that at that time every second family in the United States had its own car and could use these services to get money for any needs, especially when the economic situation in the country was unstable.
Over time, this type of business began to undergo various changes and develop in different cities and countries. To date, the conditions have changed significantly, but the meaning remains the same.
American auto loans today
Now the auto loan service also remains in demand in America. This is due to the speed of issuing money and minimal costs for processing the transaction.
The main goal of auto loans in the USA is the formation and maintenance of a positive image of microloan organizations.
Today, the United States has 40,000 auto loan organizations providing loans secured by titles. A feature of such activities in America is the presence of many branches and networks in different cities. All of them operate in accordance with local law. For example, after a car is got as a title, the loan organization is obliged to transfer information about the car owner to the police station.
Most services have a loan grace period ranging from 10 to 90 days.
Profitability of business in the country annually exceeds 100%. Thanks to these indicators, investing in auto loan shares has become popular among Americans, despite the fact that only 5 residents of the sphere are represented on the stock market.
Auto loan services often become salvation when you need fast money loans. Among modern borrowers, the popularity of such services is growing day by day. Taking an easy loan on the security of a car is simple and safe. An easy personal loan is granted under simplified conditions and is issued in a couple of days. The main thing is to choose the right and reliable service that offers the most favorable conditions.
To what pay attention when choosing the auto loan service?
First of all, the activity of a title loan service should be controlled by the State. Despite commercial activities, such organizations carry out their work in accordance with the current law. Be sure to check the documents and certificates of the company to make sure that all future transactions and approvals are secure. In this case, you don’t have to worry that you will not be returned the car if you are late in payment. The pawnshop only accrues late interest, the car will remain the owner’s property.
Also pay attention to the terms of the loan: interest rate, loan term, payment conditions, car return guarantees and the deposit amount. If any of these positions make you doubt on the compamy’s professionalism, it is better to refuse to work with it.
Before visiting an auto loan service, read reviews about it on the Internet. Often, you can find a lot of useful information left by real customers on the web.
You can also independently evaluate the quality of the service. Pay attention to the competence of employees, the attitude of managers to work and their customers.
How to identify unscrupulous services?
There are several simple indicators, using which, you can easily identify unscrupulous services:
- you are told that there is no cash at the cashbox. A reliable company always works with cash, so such a statement immediately challenges the company’s professionalism.
- incorrect statements in the contract. Read the contract carefully before signing. In a legal auto loan company, all clauses of the contract are transparent and drawn up in accordance with the current legislation.
- additional services. If a pawnshop offers a loan without providing documents for a car or cannot show its parking, then you should not cooperate with such an organization.
- you are required to pay additional parking fees or expertise. Conscientious pawnshops provide such services for free and do not charge extra money for any transaction services.