Understanding Car Equity and Ownership

The legal right to use or dispose of a vehicle is called ownership. Equity can be defined as the difference between a vehicle’s market value and its book value. Equity is the amount of vehicle worth based on some specific factors which will be discussed below in this article.


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Ever wonder how much your car is worth? It can be useful to know the exact value of your car in case you need to borrow money. It is crucial to understand the equity in your vehicle when you are considering a title pawn and, most importantly, for ownership.

How Do I Use the Equity in My Vehicle to Get Money?

You can do this by using equity, sometimes called “car equity”. Car equity is most used by people when they require quick money, such as to pay for an unexpected expense, like a costly medical bill.

Market value is determined by many factors, including year, make, model, condition, and mileage. Most consumers have the option to sell their car privately to a dealer or individual who will use their knowledge to determine its market value. Selling your car, however, is not like pawning your vehicle.  The title pawn value is based on a percentage of your equity and not the full equity value. If your car pawn value is worth $25,000 and you owe $20,000, you will have $5,000 pawn equity.  If your vehicle is completely paid for then the equity pawn value would be the full $25,000.

A Title Pawn is a way to get money for unexpected expenses. This would allow you to keep your vehicle while still funding the emergency expenses. You can borrow money against a portion of your vehicle’s equity with a title pawn. Your vehicle’s equity is determined by its year, make, model, mileage, and condition.

About Title Pawns

A car title pawn is where your vehicle’s title is used as collateral. Title Pawns offer a different approach to traditional financing. With many pawnshops, you must turn over your vehicle or give them a set of keys while pawning your vehicle. With Capital Title, you get to keep driving, while repaying your pawn, enjoying all the advantages of owning a car including using that equity! Additionally, Capital Title does not require a copy of your keys.

Capital Title pawns are similar to standard pawn transactions, except that a lien is placed upon your car’s title and you keep possession of your car while repaying the title pawn. You can drive your car, enjoy all the benefits of ownership, and keep it.

Money from your car’s equity has a major advantage. Just applying with Capital Title will not impact any credit scores. Some borrowers may even qualify for a 30-day interest-free title pawn.  If they qualify the title pawn will need to be repaid in 30 days and the interest fees may be waived if the terms and conditions are met.

Title pawn companies usually require that you own your vehicle in full. Capital Title does not require you to own your vehicle. You may be eligible for a title pawn even if your vehicle has a lien. You may still be eligible to borrow money against your remaining equity even if you are still paying for the vehicle.

What is the secret to this?

The borrower and the pawn company sign a contract or an agreement that includes repayment terms, interest rates, and other important terms. The borrower’s only responsibility is to adhere to the pawn agreement which includes paying the pawn back timely. This usually takes30 dayss. This obligation can be extended for an additional 30 days providing that the minimum payment is made.

After a pawn has been paid off, the lien is removed, and no more payments are due. The title is free and clear. This allows you to borrow money against your vehicle while keeping the vehicle!

What are the other benefits of a Title Pawn?

  • Borrowers can get Quick Approval up to $5000 for vehicles and in some cases possibly more.
  • The customer receives their money immediately after signing the agreement and has 30 days to repay the amount owed.

You must meet the following requirements to be eligible for a car title pawn:

  • Inspection – An inspection of your vehicle to determine how much equity you can borrow against.
  • Vehicle Registration – We will need a clear and free title, or title receipt from the DMV showing an electronic title is on file in your name.
  • Proof of Residence – This can be a recent bank statement, recent utility, or recent phone bill that shows your name and current address.
  • Valid ID – You can use a valid driver’s license or valid state ID.
  • Proof of Income – This is not a requirement but if you provide proof of $1,000 net income per month you may qualify for more money.

You can quickly check if you qualify for title pawn without leaving home by applying online at Capital Title, before visiting one of two locations near Tallahassee, FL. You can also call our West Location at 850-219-2274, or our East Location at 850-297-2274 if you have any questions.