When you are in need of cash during a financial emergency, it is not uncommon for people to consider pawning gold, jewelry, electronics, or other such items at their local pawn shop. Another viable option people are using is to pawn their car to get the cash they need.
However, there is often confusion about what pawning a car entails, compared to obtaining a car title loan. Some online resources you might come across make it sound like these are exactly the same thing and allow you to get fast cash for vehicles.
Yet, they are not, even though both allow you to convert your vehicle into cash. Here at Massa Auto Pawn & Sales, we want you to understand the differences between the two methods so you can make informed decisions should you need to get cash out of your vehicle.
What Is a Car Pawn Shop?
A car pawn shop is much like a used car dealership in that the auto pawn dealer buys and sells used vehicles. If your car is fully paid off and you have a clear free title but no longer want the car or need cash quickly, you can bring the car into one of our car pawn shops near you and sell it to us today
Once you sell your car to us, you walk out with cash in hand the same day. There are no loan applications, credit checks, or other such aspects to obtaining your cash. We value your car based on the model year, mileage, wholesale value, and other factors to determine a fair purchase price.
If you change your mind and want your car back, then you simply pay us back the amount we paid, plus a 10% fee. For instance, if we paid you $3,000 for your car, you would pay us $3,000 plus $300 for the 10% fee, for a loans payday Massachusetts total of $3,300 to get your car back within 30 days, or 10% to renew for an additional 30 days.
Keep in mind, your vehicle is only held for 30 days. After this time, we can sell it to someone else looking to buy a used vehicle. However, if you do want to buy it back but need longer to pay us back the money we paid you, simply let us know within the first 30 days, pay the 10% fee, and renew your contract for another 30 days.
What Is a Car Title Loan?
A car title loan is an entirely different process from pawning your vehicle. The only real similarity is you do need a clear and free title, meaning the car must not have any existing liens against it. The amount you can borrow is also based on the value of the vehicle, using different factors, like the model year, mileage, and so on.
Obtaining a car title loan is much like going to a car dealership and financing a vehicle. Basically, you are borrowing cash against the equity in the vehicle. You retain ownership of the vehicle, and the lender places a lien on the car. In the event you are not able to pay back your loan, then the lender can take the car and sell it to satisfy the loan.
Car title loans are not allowed in the state of Colorado, requiring all pawnbrokers to retain possession of pawned vehicles. But don’t worry! Massa Auto Pawn logs the miles on your contract so you can be assured that while at Massa, your vehicle stays safe and isn’t being driven. We are also insured against theft and vandalism!