Can you pawn your car for an instant loan?
The short answer is, yes. You can pawn your car, truck, or any other automobile for that matter, and when you pawn your vehicle, you can get an instant cash loan.
The other question to ask, though, is should you pawn your car?
For many of us, our vehicles are the most valuable thing we own besides the roofs over our heads, so if you are in need of a large sum of cash, pawning a car may be the most obvious choice. There are two kinds of pawn shops that you can choose to pawn your vehicle to. Auto-pawn shops are a particular kind of pawn shop that only work in pawning vehicles, or, you can find a jack-of-all-trades pawn shop, like Loan Star, that will also give you an auto pawn loan on any kind of vehicle.
There are two ways to pawn your vehicle: a classic auto pawn or a title loan.
Pawning Your Car: Auto Pawn
The first is like any other pawn, you drive up, hand over the keys to your car and get the money you need. If you don’t need to continue to drive your vehicle, such as it’s an extra car or you predominantly use public transportation, the classic auto pawn may be your best choice.
Auto pawns have the pawn shop store and look after your vehicle while they possess it, and at Loan Star, the vehicle storage is locked, secured, and patrolled to keep everything safe. Auto pawns allow for better interest rates as the pawn shop physically possesses your vehicle until you return to purchase it back, so there is less risk on the pawn shop’s end.
One drawback is auto pawns tend to be short term loans, so if you need a long-term loan, an auto pawn may not be your best option.
Pawning Your Car: Title Loans
Title loans, on the other hand, offer a few more choices than an auto pawn. Title loans allow you to continue driving your vehicle while you still have the loan, and you can often extend them to longer terms. The average title loan needs to be paid back in full within 30 days; however, title loans are a little more flexible in the contract, so some title loans can be for up to a year.
Title loans have you sign over the title to your vehicle, rather than handing over the keys like an auto pawn. When you sign over the title, you are saying in the contract that if you do not pay back the loan and interest within a certain period of time, the title holder becomes the legal owner and can repossess the car in any way they see fit. Some title loan companies will install GPS tracking devices into your car, so as to mitigate risk.
The disadvantage of title loans is that, although you get to continue driving your vehicle, the interest rates tend to be much higher than an auto pawn. The interest rates are higher because there is a lot more administrative labour needed to repossess the car if the loan is not repaid.
If you are able to go without a vehicle for a period of time, auto pawns are often the better option when it comes to pawning your car for an instant loan. The interest rates provided my Loan Star will be significantly lower than any title loan company, but it does mean that you forgo the ability to use your vehicle until you pay back your loan. If you simply cannot go without a vehicle but need cash fast, a title loan is a good option, but you have to ensure that you know what the interest rates would amount to.
Final Thoughts on Pawning Your Car
You can pawn your car, truck, motorcycle, and any other vehicle if you need a quick loan of a larger sum, but deciding whether to pawn it for the lower interest rate, or get a title loan to continue using the vehicle, depends entirely on what is best for you.