Can I Pawn a Car and Still Drive It? How Does That Work?
Pawning a car may seem like a good idea, but the feasibility of it depends on whether you can go without your vehicle for a while.
Your ability to pawn a car and still drive it depends on the company you work with. Pawning a car usually limits your ability to use it as you’ve temporarily sold your vehicle. This differs from auto title loans that use your car as collateral without limiting your usage.
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 Works
When you pawn a car, you offer it up as collateral for your responsibility to repay a loan amount. You fill out the lender's application, either online or in person, and then you usually meet so they can inspect your vehicle and verify all of your information.
A pawn loan calculates the value of the item, the potential for profit off resale, and then extends an offer that benefits you and the lender. Most pawn loans require you to leave your collateral in the possession of the lender until you fulfill the repayment requirements.
This means your ability to pawn car and still drive it are slim.
This limits the risk for them that you will take off with their collateral or damage it in a way that diminishes the value. It also allows some lenders to forego a credit check, but this is not guaranteed.
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.
While your ability to pawn car and still drive it depends on your lender, an auto title loan from Nevada Title and Payday Loans, Inc. allows you to drive off in your car every time. 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.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.