Auto Factors Inc.

is an automobile finance company founded in 1932. We specialize in financing customers who are either establishing or rebuilding their credit. We also provide excellent service to used-car dealers, helping them to achieve their goal in obtaining financing for their buyers.

Fair Lending Practice

Auto Factors Inc. is committed to the spirit and letter of fair lending laws that are designed to promote fair and equal access to credit in all states in which we are currently licensed.

Serving New York, New Jersey and Texas.
Florida (coming soon)

Location:
99 West Hawthorne Ave, Suite 200
Valley Stream, New York 11580


Phone: (516) 872-8153


New P2P LENDING

  • Disruption and Innovation
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Disruption of Auto Lending Industry

Peer-to-peer (P2P) lending for car purchases, utilizing car titles as collateral, offers a dynamic avenue for private lenders and borrowers to engage in mutually beneficial transactions. Private lenders, leveraging online platforms, assess potential borrowers' profiles, including credit history and the vehicle's value against the loan amount. With the collateral of the car title, lenders mitigate risk, making the investment enticing.

Diversification is a key strategy for lenders. By spreading their investments across multiple borrowers, they minimize exposure to individual default risks. P2P platforms facilitate this diversification by offering a range of borrowers with varying risk profiles and loan requirements. Lenders can allocate funds across different loans based on their risk appetite and return expectations.

For borrowers, P2P lending provides an alternative financing option with potentially competitive interest rates compared to traditional lenders. The process is streamlined, with online platforms offering convenience and accessibility.

In the event of default, lenders can repossess the vehicle, safeguarding their investment. However, the goal is for borrowers to fulfill their repayment obligations, maintaining trust and fostering a positive lending environment.

Overall, P2P lending with car title collateral empowers both lenders and borrowers by facilitating efficient transactions, risk mitigation through diversification, and accessible financing for car purchases.

Our Disruption Lending Model

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Advantages of Our Model

  • Competitive interest rates for investors
  • Potentially high returns for investors
  • Accessibility and convenience
  • Diverse loan options
  • Security & Transparency of Blockchain smart contracts
  • Reputable, licensed Auto Finance company founded in 1934
  • Diversification across borrowers
  • Low transaction Fees

How It Works

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    Scenario 1:

    Karen is a recent college graduate with a brilliant carrier ahead of her. She needs to buy a car in order to drive to her first employment she secured. Traditional banks are hesitant to extend a loan without substantial credit, leaving her struggling. Karen has only $2k available to buy a used but reliable automobile costing $7k. She decides to use our P2P lending platform to borrow $5k.
    She managed to then secure the funding she needs to bring her entrepreneurial dream to life.

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    Scenario 2:

    Michael, a busy professional earning only $40k per year, with limited time and a poor credit score, but he needs to buy a track to visit his customers.
    He prefers an online application process that allows him to complete the loan application during his lunch break. Because of multiple missed credit card payments, Michael's credit score is below the minimum requirements of traditional lenders. He chooses a P2P lending platform, where he can easily apply for a loan online and receives offers from multiple lenders.

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    Scenario 3:

    Elizabeth, the Tech-Savvy Investor
    Elizabeth, an experienced investor, is looking to diversify her investment portfolio. She’s drawn to the potential for higher returns offered by P2P lending. She allocates some of her investment capital to fund loans on a P2P lending platform. By spreading her investments across multiple loans, lending money to Karen and Michael, she mitigates risk by holding titles for both Karen's and Michael's cars and enjoys the 12% earning on her investment which outperform traditional savings accounts or bonds.

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New, state of the art CRM for Lender’s, Dealer’s & Customers

Our ongoing development focuses on creating an integrated CRM system that serves as the backbone of a comprehensive Mobile App. Presently, car and truck dealerships grapple with the necessity of subscribing to various costly software solutions like MegaSys, Dealer Track, Dealer Center, Route One, Nada, and GPS Tracking, incurring an annual expense of $35,000. Moreover, there's a glaring absence of a comprehensive CRM system catering to the needs of both peer-to-peer (P2P) lenders and borrowers within the automotive industry.

Our innovative CRM solution addresses these challenges by offering a single platform that seamlessly connects Car/Truck dealerships, P2P lenders, and borrowers. Not only does it consolidate essential functionalities such as inventory management, customer relationship management, and GPS tracking, but it also facilitates P2P lending operations. The system calculates monthly payments, interest, and principal, while automating late payment charges and connecting dealers with repossession companies through GPS tracking if borrower failed to pay monthly fees.

By replacing multiple costly software subscriptions with our all-encompassing CRM system, we significantly reduce expenses for dealerships while offering a comprehensive solution for P2P lending activities. This represents a paradigm shift in efficiency and affordability within the automotive industry.