Sometimes finding money at times of emergency can be challenging. For many, one misfortune can cause people to face financial difficulties, especially if they have a poor credit score. However, there is one asset that sits in your garage that secures funds at the time of crisis – your automobile.
Auto pawn loans help get immediate cash for people who need it quickly; here are a few things you need to know about such deals to avoid any shock and surprises at the last moment.
What is an Auto Pawn?
Auto Pawn loan is a loan that is backed up by the collateral, which is your automobile – car, SUV or truck. When you apply for an Auto Pawn loan, you will get money for your vehicle, and as soon as you start paying back, within the period you get your car back. If you fail to pay off your loan, the vehicle is sold off.
People often get confused with auto pawn loans and car title loans; however, these two are completely different, which is why understanding pawning your car and its benefits is important.
Why is an Auto Pawn loan beneficial for you?
- They are a safe and trusted alternative.
Known as secured loans, Auto Pawn loans use vehicles as collateral. The process is secure and can be trusted. When you bring your vehicle free of any restrictions or liens, the process immediately begins where you get the best deals in return for it. Various car pawn shops even offer loans at low-interest rates and flexible repayment options.
- No invasion of privacy
Usually, car loans seem to dig into your history before approving loans, such as credit score, banking information, salary slips and others. However, when it comes to Auto Pawn loans, it only requires a few basic information such as;
- Age and identification
- Vehicle title in your name
- Working condition of your vehicle
- Income proof
This information is merely collected to ensure that the car collected as collateral rightfully belongs to you.
- Quick and convenient
Getting a loan from the bank can be a long process; however, you don’t have to worry about delays with Auto pawn loans. These loans are quick, convenient and give easy access to cash in an emergency.
How to qualify for Auto Pawn Loan
If you are looking for Auto Pawn Loans, then here are a few requirements that will help you qualify for it.
For qualifying Auto Pawn Loan, you should have clear ownership of your vehicle, which means that all loans must be paid off if taken by you while purchasing the vehicle. Lenders will also see if the vehicle you are pawning for a loan isn’t pawned to another lender.
Age and ID
For pawning your vehicle, the age requirement varies from state to state. Usually, you need to be 18 years of age to pawn your vehicle. The lender will check your ID to ensure that you are what you claim to be. This is done to make sure that there is no fraud involved.
Condition of the car
Lenders will not approve a loan over a car in good condition or come with major mechanical and body damage issues. Before approving the loan, the lender will properly check the in and outs of the vehicle. The condition of your vehicle also decides the size of the loan you will get.
Auto Pawn helps get money based on the condition of your vehicle without any hassles. Pawning your vehicle is not an easy decision as you have to think about alternative vehicles for transportation; however, in case of crisis, these loans can benefit you because of quick financial assistance.