Auto Title Loans (2024)

Between 6 and 11 percent of title loan borrowers have a car repossessed annually.TWEET

One-third of all title loan borrowers do not have another working vehicle in their households.TWEET

Only one-quarter of title loan borrowers use the loans for an unexpected expense.TWEET

Half of borrowers report using title loans to pay regular bills. More than 9 in 10 title loans are taken out for personal reasons, compared with just 3 percent for a business owned by the borrower.TWEET

Title loan borrowers believe the industry should be more regulated.TWEET

Borrowers overwhelmingly favor regulation mandating that they be allowed to repay the loans in affordable installments.TWEET

Auto title loan customers spend about $1,200 in fees each per year for loans that average $1,000.TWEET

Title loan customers pay a total of about $3 billion in fees annually. The typical annual percentage rate for an auto title loan is 300 percent.TWEET

On average, lump-sum title loan payments consume 50 percent of a typical borrower’s gross monthly income.TWEET

That’s far more than most borrowers can afford. By contrast, a typical payday loan payment takes 36 percent of a typical borrower’s paycheck.TWEET