There are several options for individuals with fewer resources to make ends meet. A Georgia auto pawn loan is a great option to consider as you try to get your finances back on track. Not only can borrowers bypass the unpredictability of applying for a traditional loan, but they can also get the cash they need fast. This guide covers essential details about Georgia auto pawns that every borrower should understand.
What is an Auto Pawn Loan?
Auto pawn loans are the same as auto title loans. With a title, one can get a short-term loan based on their ability to pay and the value of their vehicle. The main difference is that most auto pawn shops keep the vehicle as collateral. However, it is essential to note that this is not the case with every lender, but it is prevalent in Georgia.
Once the funds are disbursed, the borrower typically has a few weeks or months to repay the principal amount and the accrued interest. Auto pawns usually have higher interest rates than if one were to take out a personal loan or use a credit card.
On the other hand, these interest rates are typically lower than those of payday loans. However, borrowers risk losing their vehicle if they fail to adhere to the set loan terms.
How to Get an Auto Pawn Loan in Georgia?
Since your auto pawn lawn amount depends on the value of your vehicle, borrowers may not have as much luck trying to pawn their cars online. Instead, they might have to visit the lender’s physical location.
A salesperson or an assessor will evaluate the vehicle and determine its value. The appraisal typically takes a few minutes. After the assessment, the lender will provide an offer based on their limits and the vehicle’s value.
If the borrower accepts the loan offer, they might have to share proof of residence and income. These requirements help the lender establish that the borrower can repay the loan in time. Besides, these details help the lender easily reach out to the borrower if they default on the loan payment.
To secure an auto pawn lawn, borrowers should provide:
- A government-issued ID
- Proof of income
- Your vehicle
- A title that lists the borrower as the owner of the vehicle
The proof of income may include income earned from social security, employment, and other frequent income sources. Besides, to qualify and be eligible for these loans, borrowers should have to be Georgia residents.
What to Look Out For?
While it is easy to access a Georgia auto pawn loan, it is essential to consider the following:
The Loans Come at High-interest Rates
You might have to pay more to service the loan over time. If you are in Georgia looking for an auto pawn loan with affordable rates, you can find the right solution at Capital Title. The best thing is that we offer same-day cash, so you can be sure to find the money you need to settle your financial emergencies as soon as the next business day.
Some Lenders Do Not Allow Borrowers to Keep the Car
Most auto pawn shops will maintain possession of your vehicle while you find the resources to make the payments. This can be inconvenient for borrowers seeking to use the car to perform daily activities. For this reason, it is advisable to read the loan terms first. At Capital Title, we acknowledge the value transportation has to our customers. Therefore, we let you keep your car and keys. You will only need to provide us with your title.
The Borrower Can Lose the Vehicle Completely
Even if the lender fails to keep possession of your vehicle, they will keep the title, just in case you fail to pay the loan. In most cases, the loan offer is lower than the value of your car. The borrower may not get to keep the difference if they default on the loan. For instance, if the borrower defaults on a $1000 loan and the car is worth $6000, they don’t get to keep the remaining $5000.
Is an Auto Pawn Loan an Appropriate Solution
Checking the auto pawn shop policy and reading the fine print can be an excellent way for borrowers to ensure they find the right solutions to settle their immediate financial emergencies. If the borrower performs the background check appropriately, they can get the cash they need without feeling like the lender took advantage.
Apply Online or Visit Our Offices Today
Are you ready to get started with an auto pawn loan in Georgia? You can get the cash you need by browsing the Capital Title website and submitting an application or visiting our conveniently located shop in Georgia. The application process only takes a few minutes, and our employees are committed to ensuring you understand every step of the process. We are dedicated to making it easy for you to get the cash you need, so don’t hesitate to apply now.