If you are thinking about getting some quick cash for an emergency, then you may consider visiting an auto pawn shop. Pawning is the easiest way of getting quick cash on your vehicle.
Although you will walk away with money in your pocket, if you are a novice in auto pawning you need to learn about how these transactions work before you even enter in any pawn shop. In this article, we will tell you what you need to know before you pawn your car with a pawn shop so that you continue driving freely.
The Vehicle Title Must be in Your Name
Before you take your car to a pawn shop you need to make sure that the car title is in your name and your name only. You can’t pawn a car if you are still making payments on another loan and you can’t pawn a car if someone else’s name is on the title with yours. You must be the sole owner of the vehicle.
Every Auto Pawn Shop is Different
The most important aspect of pawning your car is finding a reputable pawn shop around you. Each dealer has his or her own set of rules. Each lender will vary in the way they assess your vehicle and the loan amount they are willing to give you plus the period you are allowed to repay the loan.
Getting the Loan
The loans offered by pawn shops are collateral based loans meaning that the loan is secured by something of value- in this case, it is your car. This can be an ideal situation for someone who doesn’t have any credit or who doesn’t have very good credit because the loan isn’t based on your credit score. In fact, depending on the pawn shop, your credit doesn’t come into to play at all because the pawnbroker will take custody of your car until you fully repay the loan.
Repaying the Loan
If you want to get your car back you will have to pay back the loan amount plus the fee or interest charged by the pawn shop within a specified period of time. Many pawn shops will allow you to extend the time period to repay the loan for an additional fee. If you fail to repay the loan in time or you do not extend the loan period, the pawn shop will become the new owner of your vehicle. Understanding the terms and conditions set by the pawn shop is extremely important, especially if you want to keep your car.