How Can You Pawn Your Car Title?

Pawn shops are one of the oldest types of financial institutions, predating modern banks and savings and loan establishments. The first known pawn shops offered loans against collateral in China over 3,000 years ago. These shops catered mostly to peasants who required short-term loans in order to manage their finances effectively. Today, nearly anything of value can be pawned, including jewelry, musical instruments and other items of historical or financial value.

Can You Pawn a Car?

Yes, it is possible to pawn your car. More specifically, a number of companies allow you to pawn your car title while retaining the use of your car during the duration of the loan. Car pawn loans typically are short-term contracts that last three years or less. No credit check is usually performed for these loans, but a steady source of income is usually necessary in order to qualify.

How Car Title Pawn Works

Vehicle pawn requirements include proof of ownership in the form of a pink slip or vehicle title; pawn car title loans usually require that the borrower have a free and clear title in order to complete a pawn car deal. In order to pawn a car, the vehicle must meet minimum requirements for value and condition; the car to be pawned usually must have a wholesale value of at least $4,000. Additionally, the borrower must maintain full coverage insurance on the vehicle.

Completing an Online Car Title Pawn

A more convenient way to pawn a car is through an online title loan company. By filling out the application online, you can avoid waiting in line at the pawn shop and can have cash in hand to meet your financial needs quickly and with minimal stress. Online title loan companies offer fast processing. Most documents can be delivered overnight, and the needed funds can be direct deposited as soon as the company receives the title from the borrower.