Evan Paul Motorcars in Newport Beach, Calif. expands its services with asset-backed cash loans.
BY RICK WEINBERG, CALIFORNIA BUSINESS JOURNAL
First it was one phone call. Then another. And another.
Evan Paul was caught off guard, never expecting some of his wealthiest clients to be inquiring about getting short-term loans and using their exotic cars as collateral.
But Mr. Paul quickly realized that this was another level of service he could add to flourishing Southern California business, Evan Paul Motorcars. The boutique dealership features the finest selection of pre-owned exotic cars on the market from Ferrari, Lamborghini and Rolls Royce to McLaren, Bentley, Maserati, Aston Martin and Porsche, most of which are sitting in his jaw-dropping showroom just a stone’s throw away from Pacific Coast Highway.
Shortly after receiving the initial phone call inquiring about a short-term loan, Mr. Paul whipped out pen and paper and began doing some calculations … loaning $50,000 at 1.99% interest meant a quick $995 monthly.
Yes, this was definitely a viable business opportunity, he thought to himself.
The first opportunity for Evan Paul Auto Capital came in the form of the most luxurious Range Rover in the world — a 2015 Autobiography, black on black, with 22,000 miles. The owner needed $50,000 quickly. No problem, Mr. Paul said. He transferred the funds and took the vehicle into his showroom.
“For clients such as real estate developers who are in need of additional capital to complete a project, leveraging a vehicle or car collection in exchange for short term cash is quite an attractive solution,” says Mr. Paul, an entrepreneur who founded several multi-million dollar companies, including eGamePlace, which was valued at $12 million at its sale.
The next opportunity for his new venture was the owner of a 2012 Porsche 911S with only 10,000 miles. He needed $65,000. He made the transfer and stored the vehicle. Quick turnaround, quick profit.
“Two percent interest is stomach-able,” Mr. Paul says, sitting on the second floor of his plush building overlooking more than $3 million of exotic vehicles. “When you go up to 4-5% a month, that’s where someone has to be in dire straits to get a loan.”
The three programs he designed for clients to choose from include Sale Advance Loans, Storage Loans and Title Loans.
Sale Advance Loans are immediate cash loans and the client’s luxury vehicle is listed for sale through Evan Paul Motorcars.
“We’ll lend up to 75% of the agreed on value,” Mr. Paul says. “It’s a huge win-win: our clients are able to get cash up front while still getting the maximum amount for their vehicle upon sale.”
Storage Loans are immediate cash loans backed by the client’s vehicle.
“These loans are a little more discreet and confidential – and we can fund in an hour,” he says.
For clients who have collectible vehicles that are appreciating in value and are in need of capital for events such as growing a business or investing in a new business, “the storage loan is a really convenient solution,” Mr. Paul says.
The client is able to attain the necessary capital while the vehicle is in secured storage, allowing them to utilize liquid funds without parting permanently with their treasured automobile.
Title Loans is the third option.
“This offers the best of both worlds,” Mr. Paul says. “Clients again receive up to 75% of the agreed value of the vehicle while remaining in possession of their automobile.”
These private title loans have flexible terms with refinance options and no prepayment penalties. The only requirement: an unencumbered vehicle title.
“For clients who have vehicles with titles they own free and clear, the Title Loan features premium flexibility,” Mr. Paul says. “The client can attain the capital they are looking for while still being in possession of their car. It’s an ideal solution to a financial or capital problem or issue.”
Evan Paul Motorcars
1805 Placentia Ave.
Costa Mesa, Calif. 92627