The Process of Pawning Your Vehicle
If you have a vehicle you want to get rid of in a hurry, or you need some quick cash but your credit isn’t so good, then selling or pawning your vehicle at a pawn shop might be the answer you’re looking for. Just like jewelry and electronics, a pawn shop will use your car’s title as collateral, same as anything else for a loan.
Best of all, in most cases, you get to continue operating your vehicle normally for the duration of the loan. If you’re selling it, you get to trade in your vehicle for cash on the spot.
- The first step is to have your used vehicle that you own free and clear. Pawn shops won’t accept a vehicle with a lien on it, so the title needs to be in your name and your name only.
- Next, decide if you want to sell or pawn your vehicle. With selling, you agree on a price, sign over the car, get your money, and then you’re on your way. With pawning, you instead negotiate a term for repayment of the loan, with your car being put up as collateral.
- The lender becomes the legal owner of your car for the duration of the loan and will generally take possession of your vehicle should the loan become delinquent, so that they can recoup the loss they suffered from the non-payment of your loan. Therefore, it behooves you to pay off the loan by the end of the term.
- Make sure to read all the details and fine print of the loan. Failure to completely understand the terms may result in you experiencing large penalties or late fees.
For more information on pawning your vehicle, please contact GEM Pawnbrokers at (718)-596-5626. We have over 25 branches and 67 years of experience, and we are ready and waiting to serve you and your needs.