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Ever Wonder How To Pawn A Vehicle? Wonder No Longer

17 May 2020 No Comment

Do you have urgent bills to settle but your savings are nearly depleted? Do you have an old car that you are meaning to sell for a long time?

Then you may want to consider pawning your vehicle.

Though not too many Americans pawn their vehicles when they need money, it is still one of those items that yield substantial amounts of money. Furthermore, pawning your vehicle’s title is one of the fastest ways to make quick cash.

But the question is do you know how to pawn a vehicle? Do you know the requirements and steps you need to go through?

Continue reading below as we share the secrets on how to pawn your car in the most efficient way possible.

Start With the Preps

If you want to know the secrets on how to pawn a vehicle the right way, you need to go through the proper process. And this begins with the necessary preparations.

This means preparing your vehicle and completing all the pertinent requirements before heading to your nearest vehicle pawn shop. Spruce up your vehicle by taking it for a trip to your nearest car wash.

Furthermore, give it a good round of waxing and buffing. Restoring your vehicle’s old shine will make it look more pleasing in the eyes of the pawnshop owner.

If you can no longer remember that last time you gave your vehicle some TLC, then you may even need to spend on some cosmetic enhancements.

Applying some ceramic paint coating will certainly increase the look and appeal of your vehicle.

After sprucing up your vehicle, your next agenda is to look for the car title. The title is your proof that you indeed own the vehicle. Hence, you need to make sure that you have your name on the vehicle’s title.

Aside from the title, you need to prepare the vehicle registration. Also, ready the proof of insurance and bring a government-issued ID.

Last but not least, make sure that you already paid for the vehicle in full.

Begin the Dirty Work

After preparing all the requirements, you can now start with the dirty work. First, you need to know how much is the current value of your vehicle. Never go to a pawn shop without having an idea of how much your car costs.

With a ballpark figure in mind, you avoid the risk of becoming a victim of shortchanging. The pawnshop may haggle for a lower price but at the end of the day, you will still get something that is not too far from your car’s current value.

After getting the fair market value of your vehicle, you can start searching for a pawn dealer. The rule of thumb is to find a reputable vehicle pawn shop. You can find a lot of them online or in the classified ads section of your local newspaper.

You may also ask for referrals from your relatives, friends, and neighbors. Try to secure around five names of pawn shops in your area. Thereafter, double-check if they are members of the National Pawnbrokers Association.

When you pick a pawn shop that is a member of this group, you can rest knowing that they follow a strict code of ethics. They also adhere to the best practices in the pawning industry.

Pawning a Car Title

Last but not least, you should also explore auto pawn loan options. This short term loan option is a good solution if you want same-day funding without the need for any credit checks.

An auto pawn loan works by pawning not your car but only its title. In turn, you are only taking out the equity of your vehicle. This means you can still keep your vehicle and drive it.

The lender will only hold the title as collateral. The good thing about pawning a car title is the faster process. As we mentioned earlier, you can secure the loan on the same day of your application.

Aside from your car, all you need to prepare are your proof of income, a government-issued license, and a lien-free car title. After sending all the requirements, the lender will process your application.

Auto pawn loans are excellent alternatives to traditional loans. Banks and other financial institutions take a few days to process your application. And if you have a bad credit score, they will turn down your application.

With an auto car loan, you don’t need to worry about your bad credit standing. It’s the car title that will cover that. Moreover, it is a favorite option for people who need fast money but still need to use their car.

After receiving the money, all you need to do is to settle the monthly payments with interest. You will then get back your car title after completing the payments.

How to Pawn a Vehicle: Things to Avoid

Last but not least, there are certain things you need to avoid when pawning your vehicle. Avoid having the wrong mindset when stepping inside the pawnshop. Don’t expect to get the full resale value of your vehicle.

Keep in mind that pawn shops are businesses. Hence, they need to make a profit on top of the interest rates. What they will do is give you an amount according to your vehicle’s wholesale values.

Moreover, you shouldn’t expect to get a big amount if your vehicle is in subpar condition. The same thing goes if your vehicle is relatively old.

Also, if you don’t have an intention to get your car back, then sell your car to the pawnshop outright. But if you plan to keep your car, repay the loan and don’t let the license plate and car insurance expire.

Expand Your Loan Options

Now that you know how to pawn a vehicle, you can start working on the requirements to get the ball rolling. But if pawning your car is not your thing, there are other types of loans to consider.

We invite you to expand your options by reading our other articles. We’re here to help!

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