You may not qualify for a loan each time you need cash. A bank can offer loans up to a specific limit. This condition makes you look for other options in desperate situations.

When you hear about pawning an item, you may think of precious metals, jewelry or electronics. But are you aware that you can pawn even a car?

Now one might think how can a car be pawned!?

As you need your car daily, pawning it is not a wise idea.

Before you start wondering, let us learn the benefits that pawning a car gives you.

1.Pawnbroker carries the Risk

A pawnbroker will estimate the monetary worth of your car and will then pay you its value in cash. A wrong evaluation may leave them in a loss. It means that if the evaluated amount is less, but you receive more from the pawnbroker, they pay more in the end if you decide not to pay back the loan. After 90 days the car will have less value.

2.Instant Cash

Is there any emergency making you tensed? Are you looking for an on-the-spot finance solution?

Don't worry. Pawning a car will give you an instant solution. You will receive an amount equivalent to the value of the vehicle.

3.Guaranteed Approval

Pawning doesn't require a credit check, so your credit score will not matter. Even being blacklisted by a bank will not effect the decision process. A pawnbroker will help you by evaluating your vehicle and can give you an instant solution by lending money the same day.

4.Paperless work

Getting your vehicle pawned is not a difficult task. The pawnbroker will need your ID, proof of ownership and the car. The papers should reflect that the car does belong to you.

The simple procedure will allow you to receive loans in minutes. Some pawnbrokers can also offer you a loan for your financed vehicle.

5.No effect on Credit Score

The loan pawned by you does not get recorded with the credit bureau. Hence, an unsuccessful payback of the loan will not give a negative marking to your credit score. But yes, the pawnbroker may end up selling your vehicle.

6.Pawn a lot more things

Pawning is not limited to cars. You can pawn any vehicle of yours to avail financial benefits. You can pawn bikes, trucks, watches, electronics and even a boat. Ergo, your assets can help you survive in adversity.

7.We won’t mind ‘A Changing Mind’

It may happen that you don't want the pawned item back. In that case, the pawnbrokers won't even ask for a reason. You will not lose the loan, nor will you be required to pay any further interest, if you paid any at all! The pawnbroker can always sell the vehicle to try to recapture the money that was loaned to you.

What are the steps taken to pawn a vehicle?

Once you decide to get your car pawned, consider the following steps to transfer your thoughts in action.

a. Set up an appointment with the pawnbroker

b. Carry the vehicle that you want to pledge.

a. The pawnbroker will evaluate your vehicle.

b.If you agree to the evaluated amount, then furnish all the documents to the broker.

c.Hand over the vehicle to the broker for the term of the loan course.

d.The pawnbroker will electronically transfer the amount to your account.

e.Your vehicle will stay with the broker until the loan gets repaid. Once you successfully repay the loan, the pawnbroker will give your car back.

Wrapping up  

Saving cash every month is a better option. It is better to save money than seeking loans. So try and save money every month to deal with emergencies. And if your savings are not enough to support you, search for a ‘pawn shop near me’ and pawn that additional car in your garage.