If you need cash fast, then a pawn loan may be just what you’re looking for. Pawning your vehicle is both quick and easy. There are no credit checks involved and you simply have to leave your car and a few other items as collateral.
If you don’t use your car that often and are looking for an emergency loan, you should definitely consider getting a pawn loan. However, before you go ahead with it, there are several things that you need to know. So continue reading and we’ll walk you through everything you need to know if you want to pawn your car.
1. Know What’s Required
There are five things that are required when attempting to get a pawn loan from a broker. These are:
- Valid Drivers License
- Vehicle Registration
- Clear Car Title
- Proof of Insurance
It should be noted that the clear car title and vehicle are staying with the pawnbroker for the duration of the loan. You do not get to take them with you. The pawnbroker will make a copy of your driver’s license, vehicle registration, and your proof of insurance.
2. Understand the Terms of the Loan
It’s important that you understand the difference between pawning a car and pawning a car title. When pawning a car title, the broker holds onto the title while you get to keep the car. This is not the case when pawning a car.
When you pawn a car, the car stays with the broker as collateral.
It’s also important to point out that a pawn loan lasts for thirty days. However, you can extend the length of the loan by paying the interest for an additional thirty days. A Florida title loan, on the other hand, is an installment loan with a duration of around one year.
It’s crucial that you fully understand the kind of loan that you are engaging in before making the transaction.
3. Don’t Allow Things to Expire
Just because you’re giving your car to someone else doesn’t mean you’re free of all obligations. If you plan on keeping your car, you’ll have to keep the insurance on it, even when it’s under the pawnshop’s possession.
The same goes for the plates. You have keep your plates valid, even while you have a pawn loan.
4. Understand Your Car Will Likely Be Inspected
It’s standard procedure at pawnshops for employees to inspect the car. Furthermore, the year, make, model, and condition of the vehicle will be used to help assess the value of the car. This process usually only takes a few minutes.
The amount of cash you receive will be based on the value of the car and your cash needs. Some pawnshops also have minimums that they loan out and they also have no maximums.
The Importance of Knowing How to Pawn Your Car
When you pawn your car, you’ll be able to receive cash in a quick and simple fashion. However, it’s important that you understand what kind of deal you are making so that there are no unexpected surprises or issues.
Are you looking to pawn your car? If so, then contact us today and see what we can do for you!