Buyer beware, I am a former employee of Titlemax of TN and I felt that I should share a few things. Titlemax uses catchy TV commercials and print advertisement to seduce hard working lower middle class people into pawning their vehicle. They tell you over the phone that they charge "about half" of what others charge. This is true. The interest rate (and fee's) come to 12.9% MONTHLY (which is 154.8% APR). Wow what a deal.
By TN state law you can renew the pawn up to 22 times (or 22 months). Your first two payments are interest and fee's only and the third payment goes up. On the third payment TitleMax requires that you pay at least 5% of the principal balance. For example, if you pawn your car for $1,000.00 your first two payments will be 129. Xx each a total of 258. Xx.
Assuming you make only the minimum payment your third payment will be 179. Xx, So over 90 days you would have paid a total of 437. Xx and only 50.00 of that has gone to principle, Remember you still have 19 payments to make... Now when you go in to do the pawn they tell you that titlemax does not have a grace period and to make payment on the due date, they will also tell you that if there is a emergency and you cannot make payment on the due date then come into the office to "discuss your options". They are referring to three options that they give you if you are late and come into the office.
The options are as follows: 1. Make your minimum payment. 2. Pay the account balance in full. 3. Surrender your vehicle and we will hold it for 30 days until you make your payment. The funny thing about this is that titlemax will not take your vehicle until your pawn is over 30 days past due (employees will not tell you this). If your pawn does go 31 days past due then they will attempt to recover the vehicle. Once the vehicle is repossessed they will give you a last chance to pay the account in full or send it to a auto auction or sell it to a dealer.
Titlemax does not care about people. Titlemax is a multimillion dollar corporation and they don't care what happens to you as long as they get their money! They do their employees and customers wrong. I felt compelled to share this information and hope that it saves at least 1 person from making a big mistake!
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