FAQ: All You Need to Know About Vehicle Collateral Pawns

If you are in urgent financial need, you may be trying to find the money. Your options may be limited if you have poor credit or no credit. Maybe you have come across information about collateral pawns using vehicles (car title pawns). You may have many questions if you are thinking of securing a car-title pawn. These are some of the most commonly asked questions regarding car title pawns.


What is a Vehicle Title Pawn?

Vehicle collateral pawns, or car title pawns, use the pawn equity of your car or automobile as the collateral securing the money you borrow. Lending amounts and terms may differ according to state laws, guidelines and company policies. Title pawns are secured pawns.

If I can only borrow the value of my car, then how do I know how much my Car is worth?

The value of your car depends on many factors, including age, make/model, condition, and mileage. In addition, if your car has a salvage title, it typically will qualify for a lower title pawn amount than a non-salvage title.

Some prospective pawn applicants enter the process with a belief that they need to borrow a certain amount, and the car can always secure that amount. It is not guaranteed that you will receive a title pawn for the same amount your car is worth. The lenders only allow you to borrow a percentage of the vehicle’s worth.

  • Routine maintenance is the key to a long-lasting car – Cars depreciate with age, and many factors can affect the value of the car. If you have a lot of dings and dents, the damage will lower the value. Staying on top of routine maintenance also can positively impact the value of your car. Keeping up with routine maintenance on your car and keeping all the records can prevent your car from depreciating as quickly as a haphazardly maintained car of the same model and year.
  • High mileage impacts the value, too. Why? – A high-mileage car typically has more mechanical wear and tear. At Panhandle Title we will require a vehicle inspection to help determine the title pawn value of the car. However, this is not a guaranteed amount, and requesting an estimate also doesn’t mean that you’re approved for a title pawn.

I want to apply for a car title pawn! how can I get approved?

The application process to obtain vehicle collateral pawns, is very simple. Complete all paperwork and have your car’s title in hand. Panhandle Title does not conduct a credit check so even if your credit is not good you can still qualify. 

What is the average interest rate for a Title Pawn?

Panhandle Title can offer you a 30-day interest-free title pawn if you qualify. The amount you can borrow with the 30-day interest-free title pawn is limited, and the borrower must ask the lender for the promo. But if you do not qualify the finance charge is 25% every 30 calendar days on the amount financed. Local laws govern lending terms, including interest rates. Make sure you read the title pawn agreement thoroughly and are clear about your financial obligations. Talk to a title pawn representative if there are any questions regarding the rate.

Why does the lender have a lien on my Title and What is a Lien?

Title pawns enable the lender to place a lien on your vehicle.  A lien on the title is a legal representation that the lender has an interest in the vehicle. You may have liens on the home by banks that have financed your home mortgage or home equity loan.

Liens could be an issue if you do not meet your financial obligations. Banks can seize your home and take control if you do not make your mortgage payments. The same applies to car title pawns. The lender may take possession of your vehicle if you default on your car title pawn agreement. Panhandle Title can help you extend your pawn. If you are faithful to your financial obligations as set out in your pawn paperwork, then repossession should not be an issue.

I can’t find my Title! Can I still apply for a Title Pawn?

If you’ve lost or misplaced your title, you will have to get a new title issued.  Lenders can often guide you on how to get a duplicate title from your local Department of Motor Vehicle (DMV).

How fast can I receive my Money?

Most of the time, approval and the application process is quick. You may be able to get the money you need as soon as you get approved and sign your agreement. Title-pawn borrowers are able to walk away with a check-in their hands once they have signed an agreement.

Are there any rules on how I can use the Money?

The money you receive from a title pawn can be used in any way. Pay your bills, pay for an emergency, pay for a vacation, or purchase essential items. The way you spend the money is entirely up to you.

If you’re located near the Panhandle of Florida, you can apply for a title pawn online and then bring your vehicle in for inspection. Or contact one of our title pawn experts at 850-785-2274.