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Home > Articles > Title Loan Pawn | Pawning Your Car Title 1800LOANSTORE

Pawning a Car vs. Getting a Title Loan

There are both similarities and differences that should be addressed regarding pawning a car vs. getting a title loan. Both options provide the borrower with a way to access fast cash, but they are coupled with a differing set of terms.

Getting a title loan

Similar to pawning a car, getting a title loan is a way to access fast cash. In this type of transaction, you temporarily hand over your title to a lender as collateral.

A title loan is a secure way to borrow money because the borrowing amount will be determined by the value of your vehicle. This figure is based upon the information contained in the Kelley Blue Book.

If you decide to go forward with the process, you will be able to maintain possession of your car throughout the entire repayment period. You will never lose your freedom of mobility.

Title loans are coupled with a fair set of terms. The interest rates are often competitive because this is a secure borrowing opportunity. Your vehicle serves as payment assurance, so rates can remain at reasonable levels. You will never be charged prepayment penalties if you choose to pay off your loan in one lump sum. Most lenders will allow you to take as long as 42 months to pay, plus a predetermined amount can be paid in monthly installments.

Unlike the practices at most pawn shops, getting a title loan offers flexibility and convenience. You can complete the entire process of getting an online car title loan from any computer or smartphone, so there is no need to travel to a physical location.

Advantages of vehicle title loans:

  • Access to fast cash
  • Secure, fair set of terms
  • Always maintain possession of your automobile


  • Requirements and fees vary from lender to lender
  • Some online companies do not have a solid reputation
  • To apply, some companies require a lien-free vehicle

Pawning your car

When you pawn a car, you will need to hand over the title of your vehicle to the pawn shop, and this transaction serves as collateral for a loan. However, it is important to do your research and find out which pawn shops will offer title loans. Not every store will conduct this type of financing option.

You must also contact your local shop to confirm that your automobile is eligible, as many owners are picky and will not accept certain makes or models. He or she may not want to offer you a title pawn if your car is old or in poor condition.

Ultimately, the owner is hoping to make some money from the transaction, so he or she is looking for a vehicle that has a decent resale value. Along those lines, you run the risk of not getting full value for your automobile. A pawn shop has the authority to set its own prices, so your loan amount may not coincide with the true value of your asset.

You will always need to provide your title, but some pawn shops will require that you give them possession of your car as well. In this instance, you will not be able to drive for the duration of the loan. If you rely on your vehicle as a method of daily transportation, this can be an incredibly difficult adjustment.

Pawn shops often have predatory lending rates. They can charge astronomically high interest rates and prepayment penalties, and these types of practices are designed to take advantage of borrowers who are down on their luck.

Advantages of pawning your car:

  • Access to fast cash
  • Maintain possession of your vehicle (varies from pawn shop to pawn shop)
  • Minimal application requirements

Disadvantages of pawning your vehicle:

  • May not receive full value for your car
  • Vehicle may be taken from your possession
  • Predatory lending rates

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