If you need to take out a loan you’re not alone. In the past year, 34% of Americans had to take out a loan.
Are you exploring your different loan options but not sure which to choose?
In this article, find out about some of the best pawn loans for vehicles. Read on to learn about these loans and finally feel financially secure again!
Secured vs Unsecured Loans
Before diving into the different pawn loans for vehicles you can get, it’s vital you understand the difference between secured vs unsecured loans.
Pawnshop loans are considered what’s called secured. A secured loan lets you borrow a lump sum from a lender. At the same time, you’re required to use collateral in case you default on payments.
Collateral is something valuable such as your car, boat, home, etc. If you default on the payment, then the lender will keep your valuable item.
The benefit of a secured loan is you can normally get one even if you don’t have the best credit. Also, interest rates tend to be lower since it’s less risky for the lender.
Whereas, an unsecured loan isn’t tied to any assets. This type of loan is more of a risk for a lender since they can’t seize property or valuables. You’ll normally need to have a good income and credit history for a lender to approve you.
Sell or Loan?
When you need cash fast you have the option to use your property as collateral or sell it. Whether you decide to sell or loan, make sure you have your title with you.
If you decide to go the loan route, speak with your pawnshop broker about the terms of the loan, and when it needs to be paid off.
When your item is being stored at a pawn shop, you’ll need to let your insurance company know where it’s located. That might change your premium.
Remember, since it’s a loan, you’re paying the amount of the loan plus interest.
Once your loan is paid off, you’ll receive your item back.
Some examples of what can be used as collateral are:
What Are Car Pawn Loans?
You might be wondering, how do auto pawn loans work? When you choose an auto pawn loan, they work very similarly to auto title loans.
When you have your car’s title, you can receive a short-term loan. The short-term loan amount is based on your ability to pay, and the value of your car.
The difference is, pawnshops will keep your car. When you receive the loan, you’re given a timetable for paying it back. These loans have the amount financed and finance charge which equals the total of payments.
Since you’re using your car as collateral, the interest rates tend to be lower than payday loans.
Before taking out an auto pawn loan, make sure you can pay off your loan. If the loan isn’t paid, you can lose your vehicle.
To qualify for pawn loans for vehicles, it’s vital you have all of the requirements before heading over. From your age to employment, there are certain requirements that need to be met.
- Have a proof of identity to show you’re at least 18
- Proof of residence
- Name of employer
- Proof of income
- Your clear motor vehicle title
- Your car
The Benefits of Auto Pawn Loans
There are several benefits of auto pawn loans from quick access to cash, to lower interest rates. When you’re in need of money fast, an auto loan is a great option for you.
Since an auto pawn loan is considered a secured loan since you’re using your car as collateral, you won’t need to meet any credit requirements.
You can also skip some of the monotonous paperwork that’s necessary with other loans.
Lower Interest Rates
Since it’s a secured loan, your interest rates are lower than say an unsecured or payday loan. Just make sure you can pay the loan on time to avoid forfeiting the collateral.
When you’re looking for fast cash, an auto pawn loan is the right choice for you. Pawn lenders can get you your loan within an hour. Traditional loans, you normally have to wait much longer.
RV Pawn Loans
Pawn loans come in a variety of options. From trucks, cars, motorcycles, and trailers too.
RV Pawn Loan Requirements
If you’re unsure how an RV pawn loan works, it works similar to other auto pawn loans.
You need to have:
- The key to your RV
- Proof of insurance
- The RV or motorhome title
- government-issued ID
- Your motorhome or RV camper
There are minimum pawn amounts that each location will accept, so speak with your pawn shop professional today.
Boat Pawn Loans
If you have a boat, it has a title. But, the process of pawning a boat requires that your title is free and clear of any liens. Like other pawn loans for vehicles, you’ll receive money against your boat as collateral.
Normally, most pawn shops will store your boat during the term of the loan in a secure location.
When you’ve finished paying back the pawn loan, then you’ll get your boat back.
You might wonder, why use a boat as collateral? If your boat is just sitting in the marina, why not pawn it for cash?
Boats Lose Value
One thing to keep in mind is that boats are not appreciating assets, but instead depreciating assets. Once you buy your boat it loses value immediately.
So, while you still have good value you can use it to secure a boat pawn loan.
Let’s face it, while you love your boat, the maintenance costs are expensive. If you’re looking for cash fast, you probably don’t want to be spending money on maintenance costs when funds are low.
When you take your boat out it comes with high costs. Don’t forget about storage yard fees and marina slip fees.
Once you’re in a better spot financially, then you’ll be able to pay the maintenance costs and fees much easier.
Trailer Pawn Loans
If your trailer meets the minimum value threshold, then you can enjoy fast cash when you need it most. Have all accessories included with your trailer when you bring it in.
The better condition your trailer is in, the more value you’ll receive for it. Your travel trailer will be held and stored securely until the payment of the loan is met.
You’ll need your trailer registration and driver’s license when you decide to pawn it. You’ll need to prove ownership. Of course, make sure it’s in good and working condition.
No Maximum Limit
There’s no maximum limit for your trailer, only a minimum. It’s required for your trailer to be worth at least $2,000.
Motorcycle Pawn Loans
Did you know you can have your motorcycle used for a pawn loan? That’s pretty convenient if you have another mode of transportation.
If you decide to use your motorcycle as collateral, your motorcycle will be kept in a secure facility. Once the loan plus interest is paid off, then you’ll receive your motorcycle back.
Your motorcycle needs to be worth more than $1,500. If that’s the case, you’ll receive a loan for at least $500. There’s also no maximum limit on motorcycle pawn loans as long as it has a higher value and maintained in tip-top shape.
You don’t have to worry about credit checks with this option. Also, you can receive same-day funding.
Pay What You Owe
Pawnshops will give you the option to pay your loan back in monthly payments or as one lump sum. Choose what option will work best for you financially.
Speak with your pawnbroker before signing the paperwork. Find out about any late fees that will be assessed for late payments.
Should You Get a Pawn Loan?
While there are different lending options out there, a pawn loan is one of the best options. Not only do you not have to worry about your credit, but you’ll enjoy lower interest rates.
The reason why pawnshops can offer a lower interest rate is due to the collateral on the loan. If you’re currently in a bind and need a way out fast, consider a pawn loan today.
This is a great way for you to get cash fast, and then receive your valuable item back after you pay back the loan. Your valuable item will also be kept in secure storage as well.
Exploring Different Pawn Loans for Vehicles
After exploring different pawn loans for vehicles you should have a better understanding of your different options.
Are you struggling for money and need help now? Contact us today and we’ll ensure you get a great rate and get cash fast.