Unsecured loans/car loans - whats the market like?

[crazihos]

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Im just wondering what the markets like for unsecured loans - I am in talks with a lender to offer unsecured loans through lookingforloans.co.uk and lookingforcarloans.co.uk (to be developed).

I know the big boys like A&L do them but they only accept you if your credit history is amazing so that they can keep their typical APR down for advertising purposes so I assume they are diffiicult to convert.

Talks continue to go well our rates will be 7.9% to 13.9% with a typical apr of 9.9%.

and I believe we could pay around £50 per conversion or £7-£10 per lead.

I would really appreciate some help on this one as if I can go into further talks armed with some stats of what affiliate think they could generate things will be much easier to organise.

PM me or keep it open but please let me know what you think you could do with this?

cheers everyone

Russell

[Malcolm Cowley]

Hi Russell

APR is key and avg 9.9% might be a struggle - people tend to go for the rate and that one does not look so competitive

£15 - £30 an app is available for well known high street brands with rates lower than the one mentioned so I would think it might be hard for you to get the traffic you need if your looking for volume.

Sorry its not better news but better to know up front.

Mal

[crazihos]

Cheers Mel - not the best news going but your right its better to have it straight.

Im aiming to specialise a bit more really possibly by branding it as car loans which may help as there arent many car loan specialists out there (that i know of?).

The thing with the big names is they turn down litterally thousands of people as if they have to offer someone a rate of 9.9% it damages their typical apr too much. Would there be a market to pick up these people do you think?

thanks for your help

Russell

PS - the volume I would need is around 400 a month so its not vast numbers.

[Malcolm Cowley]

Hi

Yeah possibly more luck with the market they dont want and steering it to Car Loans maybe.

Good Luck with it anyway

Mal

[Brains]

Car loans....far more clicks on advertised rates of 7.9% than others at near the 10%


BRAINS

[crazihos]

Cheers brains - looking on your site they all seem to be secured loans though, I have been told that most car buyers look for unsecured loans for car purchses as secured loans take a month+ to come through or do you do unsecured loans also?

cheers

Russell

[Brains]

I do a mix of secured and unsecured and switch between to see what is favoured. Not much difference. Also, as you already know, I work a lot on PPC.

BRAINS

[Steve Jennings]

The good news is the unsecured marker is huge, if you are looking at 400 leads per month they should be very easy for you to generate - 400 completions is a different matter!

I think you would be better looking at paying per completion rather than lead, certainly at the sort of figures your talking about, at £7 to £10 per lead I'd expect you to have to reverse a lot of leads.

Even at rates of 13.9% your still not going to be able to complete a loan for anyone who is anywhere near "sub-prime", in reality as a broker at those sorts of rates the clients you will complete a loan for are the ones who could get single digit APR's direct with one of the big banks.

If you are specifically targeting car loans it might be worth hooking up with a big car broker, that way the client can get the funds put in place and go and pick the car of their choice from the dealer of their choice, because the loan is secured on the car the underwriting is less strict so you could complete more.