Driver's Guide

How to Pawn Your Car Title

Howdy, Driver? If you are in urgent need of money, then learn how to pawn your car title for a fast loan. Besides, pawning your car title allows you to take out the equity of your vehicle and keep the car in your possession while making payments monthly, typically with interest.

how to pawn your car title

To pawn your car title means issuing your title as collateral for a loan. However, your car remains with you, but if you do not repay the loan, the pawnshop may take legal actions against you and possess your car.

A title loan refers to a secured loan whereby the owner of a car uses their title as collateral to obtain a loan. Typically, you will permit the lender to place a lien on your title and you will leave the title of your car with the lender for a loan in the value of your title.

How to Pawn Your Car Title

In this section, I will reveal the steps to pawn a car title and secure a loan for emergencies.

It is important to know the steps to pawn a vehicle title if you must hasten the process and collect the loan.

Below are steps to pawn your car title:

Find Pawnshop Near You or Online

You can locate a lender or a pawnshop near you be search “car title pawn near me” online. Most pawnshops offer online services, so, you can apply to pawn your vehicle title online.

First, read through to learn about the pawnshop and how they operate. If you have questions, use the contact form or the available phone number/email address on the website to contact the personnel.

If you find downloadable forms on the website, download and complete the required fields and submit them at the pawn branch near you.

Keep Your Title in Handy

The certificate of the title indicates that you are the legal owner of a car. So, if you do not have a title, you do not qualify for a title loan.

If you cannot find your car title to proof ownership, read how you can obtain a duplicate title, but you must exercise patience for the DMV to process your request. It could take between 7 and 14 days or more.

Prepare Your Vehicle

Typically, your vehicle must be free from lien to qualify to pawn your car title. Every pawn location will only grant a loan if a car is put in your name. If a car is not registered in your name, you do not own the car legally, and you are not liable for certain things regarding the car.

Note: The vehicle cannot be in the name of a sibling, spouse, parent, etc.

If the pawnshop approves your loan request, they are at risk if your car is financed, for instance, because the finance company may repossess the vehicle.

So, the lender wants to be sure that the vehicle belongs to you.

Before visiting a local pawnshop, I advise you to work on your vehicle to increase value.

Of course, you can only receive a title loan that corresponds with the current value of your car.

Get a Source of ID

Your source of identification could be any recognized ID issued by the government. It includes your drivers license (avoid a fake drivers license), state ID, or any required ID.

Your Proof of Income

To confirm whether you can afford to repay the loan, the pawnshop may request your credit report. You have the right to refuse to present your credit report and you are covered by the law.

Instead, present your proof of income and the lender should be satisfied with it.

Your proof of income could be your Social Security, pension, employment proof, and other income streams such as earnings from disability programs, charitable sources, veteran rewards, etc. You must present documents to prove that the income source is active.

Address Verification

You may present additional documents such as a utility bill for the verification of your address and place of residence.

Inspect the Vehicle with the Lender

When you arrive at the car title pawn near you, the sales associate will inspect your car. Vehicle information such as the current condition, make, model, year, mileage, etc. would be used to assess and value the vehicle.

It takes at most 30 minutes for the pawn to give you an appraisal of your vehicle and determine the loan amount.

If you pawn your title online, you may not have to visit the physical pawn. Some lenders will request photos of the vehicle covering every part of the car.

You will also include a photo of your VIN and the odometer to help the lender value the vehicle.

When the loan amount is stated, the pawn expects you to agree to their terms to pawn your car title.

A typical pawnshop will issue the title loan in the form check, although a few other pawn locations can pay cash on demand.

How much do you get for a title pawn

What You Should Know Before Your Pawn Your Car Title

  • The lender combines several factors to value your car and give a loan based on the title.
  • The lender may apply interest to the loan amount.
  • You may have to present the current insurance of your car to determine the duration of the loan (not all lenders request insurance proof).


How Does a Car Title Pawn Work?

Typically, a vehicle title pawn is like a payday loan, but in this case, you will surrender the title of your vehicle as collateral and you will still have your vehicle with you. The title will be given to you after you repay the loan completely, but the lender can possess your car if you fail to repay.

Can I Pawn My Car Without the Title?

A title shows that you are the legal owner of a car; you cannot pawn your car without a title because you must prove yourself as the owner.

Does Pawning Your Car Title Affect Your Credit?

Typically, a title loan does not affect your credit because the lender will only request your proof of income. Though some lenders may ask for your credit report, you have the right to refuse them your credit report. If you repay a title loan completely, it has a positive effect on your credit.

Can You Go to Jail for Not Paying Title Loan?

You cannot go to jail for not paying a title loan. However, the lender may possess your vehicle for failure to repay the loan, but after sending you notices about the planned action to possess the car.

What’s the difference between car pawn and a title pawn?

The difference between car pawn and title pawn is that when you pawn a car, the lender possesses the car until you repay the loan while title pawning allows you to keep your car, but you will give the title certificate to the lender.

Do you need insurance for a title loan?

No, and yes, some lenders request insurance for a title loan while some other lenders do not.

Are car title loans worth it?

Yes, car title loans are worth it if you are confident of repaying the loan without defaulting. Also, lenders request your proof of income only, which can be anything that gives you a stable income.

Final Thoughts

In this article, I have disclosed the steps regarding how to pawn your car title at a pawn near you.

The procedures are convenient compared to the procedures and requirements in the traditional loan application.

Before you pawn your cat title, assess the interest rate of the lender thoroughly. If possible, check with other pawn locations for the best interest rate.

When you fail to repay a title loan, the lender will not send you to jail. However, the lender will use legal actions to possess your car. And if you fail to hand over the car, you risk a jail term.

Latest posts by Bernard Juchli (see all)

Bernard Juchli

Bernard Juchli is an experienced racer, mechanic and team owner who trusts Avon Tyres.Bernard is the lead driver and force behind his Big Dog Garage Race Team. He is the General Manager and Chief Mechanic of Jay Leno’s Garage. Bernard and his crew of seven are responsible for all repairs, restoration and fabrication of Jay’s incredible automobile and motorcycle collection.

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One Comment

  1. It’s nice to know that there are times when giving a credit report can be options when it comes to attempting to pawn a car. I’m thinking about pawning mine because I need some extra funds for the medical bills of my daughter. Her anemia acted up badly the other day to the point that she would need to get admitted to a hospital for further monitoring.

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