If you are thinking about pawning your car, one of the first questions you may have is simple: can I pawn a car and still drive it?
In many cases, the answer depends on the company you work with.
A traditional car pawn may require you to leave the vehicle with the lender while you repay the loan. That can be difficult if you need your car for work, school, appointments, errands, or family responsibilities.
A title loan works differently. With a title loan, your lien-free vehicle title is used as collateral, and in most cases, you can continue driving your vehicle while making payments.
This guide explains the difference between pawning a car and getting a title loan, what items are usually needed, and what to review before moving forward.
Pawn Car And Still Drive It Vs. Auto Title Loans
Car pawning and auto title loans are often used interchangeably, but they don’t actually mean the same thing. Keep reading as we explain how pawning a car works and how it differs from an auto title loan. We’ll also touch on where you can find these lenders and what application processes look like.
How Pawning a Car Usually Works
When you pawn a car, the lender may treat the vehicle itself as the item being held for the loan.
That means they may inspect the vehicle, estimate its resale value, and make an offer based on that review.
With many pawn-style loans, the lender keeps the collateral until the loan is repaid. If the collateral is your car, that may mean you cannot use the vehicle during repayment.
That can create a problem if your car is how you get to work, job interviews, school, medical appointments, or the grocery store.
Because of that, pawning a car may not be the best fit for someone who needs daily access to the vehicle.
How a Title Loan Is Different
A title loan is different because it uses your lien-free vehicle title as collateral.
The vehicle itself usually stays with you.
That means you can generally keep driving your car while making payments, as long as you follow the loan agreement.
A title loan may be reviewed based on:
- Your lien-free car title
- Your vehicle’s current value
- Your required items
- Your application information
- Your ability to repay
- Other requirements
Your title still secures the agreement, so missed payments can have serious consequences.
That is why it is important to review the full agreement before signing.
What Does Lien-Free Mean?
A lien-free title usually means the vehicle is paid off and no active lender is listed on the title.
Before starting a title loan inquiry, check that:
- The title is in your name
- The vehicle is paid off
- No active lienholder is listed
- The title matches the vehicle being inspected
- The title is readable and not badly damaged
If you are still making payments on the vehicle, your title may not be lien-free yet.
If the title is missing, damaged, or still in someone else’s name, ask what may need to be fixed before moving forward.
When Pawning A Car Makes The Most Sense
Pawning a car makes the most sense if:
- You need fast cash (not a direct deposit or waiting a week for approval)
- You want to forego a credit check completely
- You don’t need your vehicle to get around
These are three areas that distinguish a car pawn from another type of loan. Most brokers fund your loan with cash, rather than a check or direct deposit, and you can be approved on the spot. Because you are not holding onto your vehicle, they don’t worry about your credit history; they won’t need to worry about chasing after your collateral if needed.
Because you can’t often pawn car and still drive it, auto title loans are a similar option to consider.
Car Pawn Vs. Title Loan
While these terms are used in place of each other, they actually refer to different types of lending options.
An auto title loan usually involves a lender holding onto your vehicle’s title as collateral. This is a higher risk for them, as it opens up the possibility for damage to the vehicle that would interfere with profit should repayment not occur.
Many prefer auto title loans because they can still drive their car while making payments on the loan. This helps those who only have one vehicle or who live in an area with poor public transportation without removing their chance at an emergency loan option.
Reasons People Pawn Their Car Or Get An Auto Title Loan
Putting up your vehicle as collateral is not an easy decision, but it opens up a pathway toward emergency funds for issues such as:
- Home repairs
- Medical bills
- Dental bills
- Covering rent or mortgage
While other loan options exist to help with these situations, car pawns and auto title loans are more accessible and might get you funds faster. Because they are both secured options, there is less pressure for high credit scores and lenders have a better understanding of how to work with you.
Whether you want to pawn your car or you need to hold onto your daily driver, there are options to consider.
Auto Title Loans With Nevada Title And Payday Loans, Inc.
Nevada Title and Payday Loans, Inc. can get you up to $15,000 with a title loan (depending on the condition and value of your vehicle). The online application takes only a few minutes, and a representative will call you shortly after to finish the application.
You can choose a location that works for you for vehicle inspection, and after a brief inspection you should be able to finish your approval process. You receive cash the same or next business day, and you can still drive your car while making payments on your auto title loan.
Inquire Today!
Pawning a car and getting a title loan are not the same thing.
If you pawn a car, you may not be able to keep driving it. With a title loan, your lien-free vehicle title is used as collateral, and in most cases, you can continue driving your vehicle while making payments.
Nevada Title and Payday Loans, Inc. can explain the current title loan process and help you understand what may be reviewed. If you need fast emergency cash with little hassle, check us out online today.
We welcome borrowers of all credit situations, and all that sits between you and the funds you need is our simple online form.
Frequently Asked Questions
What do I need for a Nevada title loan?
You generally need a driver’s license or state-issued photo ID, a lien-free car title in your name, and your vehicle for inspection.
Does my title need to be lien-free?
Yes. The title generally needs to be lien-free and in your name.
Can I keep driving my vehicle with a title loan?
In most cases, borrowers can continue driving their vehicles while making payments. The title still secures the agreement.
How is the loan amount reviewed?
The amount may depend on the vehicle inspection, current vehicle value, application information, ability to repay, required items, and other requirements.
Can I start with bad credit?
Borrowers with different credit backgrounds may be able to start an inquiry. Approval is not guaranteed and depends on the complete review.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
