CAN I PAWN MY CAR AND STILL DRIVE IT?

Posted by Malini Somra on August 16th, 2019

Yes!! You can pawn your car and still drive it. Title loans are a way in which lenders help to provide quick cash for consumers who need fast financial aid but may not qualify to obtain loans from financial institutions due to their bad credit. You can pawn your car and still drive it while you pay off the loan.

The Title Pawn Process

Application for a title loan is fast and convenient regardless of where and how you are applying for it. Whether you applying in person or applying online from the comfort of your home, the whole process is the same and the same requirements are involved. There are no credit checks when you apply for a car title loan, approval rates are high and you can get your money within an hour after your loan has been approved.

The main requirements needed to obtain a title loan include a car in your name that is lien-free, and your government-issued ID which will serve as a means of identity. This is to ensure that the borrower complies with federal regulation which stipulates that all borrowers are at least 18 years old.

The lender will look up your car in a car value guide and then they perform a quick inspection and evaluation of your car to make sure it is in good condition and to also know its worth. This is required to determine the current market value of your car as it is based on this they will decide how much money you can borrow.

Maximum title loan amount that a borrower can get varies from state to state. Although, some states do not put a restriction on how much you can borrow when you apply for title loan. The least amount is usually around several thousand dollars. Lenders usually lend you about 30 to 50 percent of your car’s current market value just saw they are able to handle the risk in case the borrower defaults.

Handing Over Your Car Title

The question here is can I pawn my car and still drive it and we have provided an answer to that, stating that yes you can pawn your car and still drive it. However, before you can pawn and drive your car, there are processes to be followed. You can drive your car even when you don’t have its title anymore even though a lien is already placed on the title by your lender. That will not be a problem as far as you do not default, you know you can have your title back as soon as you pay off the loan. After paying off the loan, your lender removes the lien on your title and your car title is returned to you.

Hence, you do not need to worry about having to abandon your car and not being able to drive it when you pawn your car. The whole process has been made to be comfortable for both the lender and the borrower who decides to pawn his or her car.

Learn more about title loan - https://www.bankrate.com/glossary/t/title-loan/