When people need money fast for an economic crisis, they take out two distinct sorts of automobile pawns. The distinction between the two pawns is important to comprehend if you want to make correct borrowing choices. The answer can be found in how each one of them works, but let’s break it down for you to make sure there are no misunderstandings.
Who Has the Vehicle’s Title During Financing?
- Car Title Pawn – it typically involves borrowing money against your vehicle (and its equity) instead of selling it outright. This means that if you have bad credit or need money quickly, this may be your best option because they don’t require collateral like other lenders do – making approval easier!
- Auto Pawn Shop – it is not the same as a car title pawn. Rather than handing over your automobile and title to the lender, you leave it with them. Your automobile is kept by the pawn shop until you pay back the money.
This may apply to any sort of pawn, and it’s extremely likely that they will not offer you the full resale value on a pawn. Rather, they approve you for a percentage of the vehicle’s worth, based on the condition of the automobile and how much money you can afford to pay back, which is generally set at wholesale values.
Car values decrease the older the vehicle is or when it is in poor condition so don’t expect to get a huge amount for older vehicles or vehicles in poor condition. If you have an older vehicle or one that is in poor condition, it is highly recommended to contact the lender directly and ask if you can use it to get a pawn.
When deciding between Car Title Pawn and Auto Pawn Shop
Consider the implications before making any decisions, for example don’t expect to get an auto pawn and drive your car home. An auto pawn requires you to leave your vehicle at the pawn shop until it is repaid.
Instead, once you’ve obtained a car title pawn, you can drive your car worry-free, and you don’t have to sit through a credit check (only the amount of equity in your automobile is considered)
Title Pawns are a great way to get money quickly and easily!
You can apply for one online in minutes! The process is fast, simple, and has never been easier than it is now.
With so many options out there, what’s the difference between them all?
Here at Capital Title near Quincy, FL we offer loans that fit your needs and budget no matter how big or small they may be.