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What is an Auto Pawn Loan?

Auto pawn loans are an effective, easy way to raise money when you need it the most. Auto pawning works like regularly pawning, with the only difference being that you’re pawning your car instead of some other valuable.

Unfortunately, auto pawn shops typically require you to leave your vehicle with them, or at least park it somewhere, until you’ve managed to pay off the entire balance of your loan, plus interest, making this a relatively inconvenient way to borrow money.

Most of the time, auto pawn lenders will allow you something like 30 to 90 days to pay them back, but you’ll need to be cautious with this form of lending, because many lenders won’t let you continue to drive your vehicle until you’ve fully paid off your loan!

Unlike many other auto pawn lenders, City Loan doesn’t require you to stop driving your vehicle during the course of your loan. And while City Loan doesn’t only offers auto pawn loans out of Long Beach, CA location, we also provide fast, easy and convenient car title loans at locations all around the country.

If you’re looking to raise hundreds or even thousands of dollars in a hurry, then call us now at 1 (888)-238-9085 to get the cash you want today!
 

Reasons to Pawn Your Car

In recent years, auto pawning has become more popular than ever before because so many people are facing financial problems.

People take out auto pawn loans for all sorts of reasons, but some of the most popular reasons for borrowing include:

  1. Paying Bills
  2. Making Rent
  3. Medical Bills
  4. Mortgage Payments
  5. Student Loan Payments

Auto pawn loans are rarely used for luxury items or future, projected expenses, and typically used to make ends meet for immediate financial needs.

However, keep in mind that auto pawn loans can be used to fund other expenses as well. They can be used to raise money for down payments on a house, taking a vacation, buying Christmas presents for the family, or whatever else you want.
 

How Auto Pawn Loans Work

One of the nicest things about auto pawn loans is that they’re extremely simple. It’s likely that you’re now sitting within just a short drive of a local auto pawn lender, and that you’d be able to use an auto pawn loan to raise cash within minutes of deciding that you wanted to do it.
 

Once you’ve determined that you want to pawn your car, you’ll need to find a local provider, then take your can in to have it evaluated. This part of the process is required because your loan is likely going to be based on the value of your vehicle. The more valuable your car is, the more money you’ll be able to borrow.

After your lender determines the value of your car, they’ll offer you a secured loan for an amount based on that value. Before you can accept the agreement and get the cash you want, you’ll need to provide a valid driver’s license and proof of insurance, but that may be all that the lender will require.

Keep in mind that some auto pawn shops offer better deals than others, and don’t automatically just sign up for the first one that you come across. Better yet – before you agree to give up access to and use of your vehicle for an auto pawn loan, call City Loan to find out if you can qualify for one of our car title loans.

Like auto pawning, we’ll be able to get you the cash you want based on the value of your vehicle, but we won’t require that you leave your car with us throughout the course of the loan.
 

Auto Pawn Loans vs. Other Types of Short Term Loans

It used to be difficult to come up with cash on short-notice, but all that has changed. In the modern economy, even people with poor credit can raise cash quickly, because short term loans have become widely available to virtually everyone!

If you’ve got a relatively new car that’s paid off, or nearly paid off, then you’ll have access to all sorts of options for raising money, from an affordable car equity loan to one of the many popular forms of installment loans.

Here’s the catch though – some types of personal loans are significantly better than others, and while some could certainly help you get back on firm financial footing, others may cost you far more than they’re worth.

Read on to find out how auto pawn loans compare to some of the other popular forms of short-term financing.
 

Auto Pawn Loans vs. Payday Loans

Payday loans are arguably one of the most popular short-term loan options currently available, and they’ve been known to be especially popular with people who have poor credit. Payday loans have gained that popularity because they’re one of the most accessible forms of lending, being widely available to virtually everybody who can prove that they have a job.

However, there is a major downside to payday lending, in that it can be one of the most expensive ways of borrowing money. Payday lenders have even been so abusive in certain cases that payday loans are banned altogether by a handful of states, meaning that you’ll want to think twice before applying for a payday loan, no matter where you live.

Here are just a few of the major downsides to payday lending:

  • You will need to provide proof of income and if you’re unemployed, you may not be able to qualify
  • You can usually only borrow up to as much money as you’re set to receive with your next paycheck, which for most people, means several hundred dollars (or a couple thousand dollars at the most)
  • You will have to pay off the entire loan, plus any applicable interest and fees, by the time that you receive your next paycheck
  • You will be hit with all sorts of penalties and other fees if you aren’t able to pay the loan off at the time you receive your next paycheck
     

Auto Pawn Loans vs. Credit Card Cash Advances

Credit card cash advances may be a safer form of borrowing than payday loans, but they’re still not necessarily the best way to borrow money for a short-term period.

Like payday loans, credit card cash advances have several drawbacks, including:

  • Credit card advances typically only allow you to borrow a few hundred dollars, because they only let you borrow up to the difference between what you already owe, and your existing credit limit (for most people who need money, that’s a small amount)
  • Credit card cash advances usually require you to have a good credit score, meaning that if you’ve faced financial problems in the past, you’ll have a hard time borrowing in this manner
  • Credit card cash advances are only available to people who already have credit cards, so if you’ve got serious credit issues, they may do you no good at all
     

Auto Pawn Loans vs. Traditional Bank Loans

To be honest, one of the best ways to borrow money is by getting it from a traditional bank in the form of a secured personal loan. Most people who borrow money from banks are probably getting a mortgage loan, used to purchase a house, but you can also take money from banks for investing in a business, rebuilding or repairing a part of your house, or a number of other projects.

The biggest benefit to borrowing from a bank is that they typically offer the lowest interest rates in the market, meaning that this is likely the cheapest way to borrow some money. The downsides to borrowing from a bank, however, are numerous, and likely to make it extremely difficult for you to raise any cash. Downsides to bank loans include:

  • Bank loans typically require a lengthy application process that can drag on for weeks, or even months
  • Bank loans are usually only available for those who have an outstanding credit score, meaning that if your score is anywhere under 620, you shouldn’t even try
  • Bank loans are typically only offered for certain types of expenses, like purchasing a new house, expanding your existing house, investing in a business or doing some other similar project
     

Auto Pawn Loans vs. Auto Title Loans

Some people may think that there’s no difference between auto pawn loans and vehicle title loans, but that’s not true at all!

The biggest and most important difference between your typical auto pawn loan and car title loan (often referred to as a pink slip loan) is that the auto pawn loan will most often require you to stop driving your vehicle around until you’ve fully paid back the loan.

On the contrary, title loan lenders are likely to allow you to borrow money against the equity value of your car while rarely requiring you to leave the vehicle with them. In fact, if you took out a car title loan from City Loan, you’d be able to keep your car and drive it however you want until you’ve fully paid off the loan!

For most Americans, it would be impossible to give up their vehicle for a day or two (or more), and if you’ve one of those people, then car title loans are going to be a significantly better lending option.

While you’ll still be able to take out a loan based on the equity value of your vehicle, City Loan’s car title loans won’t require you to park your vehicle somewhere, or leave it with us. As long as you continue to make your monthly payments on time, we won’t restrict your driving in any way!
 

Tips for First Time Borrowers

If you’ve never taken out an equity loan before, here are a few tips to consider:

  • Your car needs to be under your name in order to use it as collateral
  • You will need to have fully paid off your car, or have only a few remaining payments left
  • Your cash should have a wholesale value of at least several thousand dollars
  • You will need to make your loan payments on time, otherwise you’ll risk having your vehicle taken by the title loans company and sold at auction!

Like every other form of secured personal loan available on today’s  market, auto title loans do come with a few risks of their own. The biggest risk is that of losing your car entirely, because of failure to keep up with the repayment schedule. The key thing to keep in mind when going out to get a title loan is that you only be borrowing as much as you can afford!  
 

City Loan Long Beach Can Help

Even if you don’t have a perfect credit score, there’s a good chance that City Loan Long Beach can help you raise the money you want today.

Whether you're driving a modest $5,000 car or a $50,000 luxury vehicle, we may be able to get you the cash you want within minutes of receiving your request for help.

 

Find a City Loan Near You

City Loan offers the best service compared to any other lender in the market. If you're looking for an auto pawn loan, look no further. Our primary office can be located in Long Beach, California at:

Address: 
3431 Cherry Ave,
Long Beach, CA 90807

If you're looking for the best car title loans anywhere other than Long Beach, we've got you covered!  New MexicoArizonaUtahCaliforniaTexasMissouri, and South Carolina are all states covered by City Loan's growing service area.

Our title loans are fast, easy and convenient, and even if you’ve got a history of late payments, car repossessions, loan defaults or even bankruptcies, we may still be able to help.

Fill out our online application form or call 1-888-238-9085 to get the cash you want today!