When money is tight and life creates an emergency, you may find yourself in a financial crisis. You might have a sweet car that could take you to the bank, but that ride doesn’t help you when you have no money to put in your account.
If you own your own car, you do have an asset. A title pawn may be your solution. Keep reading to learn everything you need to know about a title pawn.
What is a Title Pawn?
You may already know what a pawn shop is. A title pawn is when you pawn the title of your car. You need some cash now, so you trade your title for cash with the understanding that you can pay the pawnshop back within an agreed-on time frame.
When you pay back the lender, then you get the title back and have a clean title for your car. You can still use the car, but you do not own it because you have a lien out on it.
The pawnshop or the lender owns your car. They cannot typically sell it, however. They must contact you first, and they should keep the title and not sell the car if you’re still within contracted months when you can pay them back.
Pawning vs. Selling
Now that you can answer the question, “What is pawning,” you may wonder how pawning differs from selling.
When you sell your car, you’re giving up all rights to the car. You’re basically saying goodbye to the car and expecting to never own it again.
When you pawn a car, you are giving the title to a pawn shop for a stated amount of time. The pawn shop will give you that time to pay them back for the title. Then you will own the car clear and free.
How to Pawn Well
To get the most from your pawn, start with your product. Take time to clean your car up so you can receive the maximum value for it.
A pawnbroker may not offer you as much for your title if the vehicle looks filthy or broken down.
So take time to clean the car inside and out, wash it, and vacuum it. Put a new air freshener in, and replace the wipers.
Determine You’re Getting a Fair Price
Do some homework on the value of your car.
You can learn the value of your car through Kelley Blue Book. You could also ask a car dealer what they would pay to purchase your car. Pawnbrokers need to make a buck, so they will value your car for less so they can sell it for less.
Find a reputable pawnbroker. For example, the lender that can offer a Vancouver title loan is just one example of such a broker. Look for reviews of the broker you’re researching.
Pawnbrokers may not offer you the exact value of your car, but they will give you a good sum of cash for it. If you need cash now, you can get cash today when you pawn your title.
A title pawn could be the solution to the temporary money problems you have. If you go into the deal understanding what your vehicle is worth, you can make a good deal and plan on getting your vehicle back.
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