The Dos and Don’ts of Pawning Your Own Vehicle at a Car Pawn Shop

When you need cash quickly for a financial emergency, one way to get the money fast is with an auto pawn loan from a car pawn shop. Getting a pawn loan is quick, easy, and hassle-free, compared to trying to sell the car yourself or get a traditional loan through a bank or credit union. Anyone can qualify for a pawn loan, as long as they are:

  • At least 18 years of age.
  • A resident of the state.
  • Have a verifiable source of income.
  • Have a valid driver license.

Before you rush over to your nearest vehicle pawn shop location, it is a good idea to make sure you read the following dos and don’ts of pawning your own vehicle. This will help you verify you have everything in order so there won’t be delays in getting your cash.Get More Value For Your Used Car


DOs of Pawning Your Vehicle

  • Do find your car title. You will need your original car title to get a pawn loan on your vehicle. Copies are not accepted. If you cannot locate your car title, you can order one from the Colorado Department of Motor Vehicles.
  • Do verify your car title is clear and free. You cannot have any other loans on your vehicle in order to get a pawn loan. If you already have a loan, it will need to be paid off first. If your original car loan is paid off but you did not update your title, you will need to bring along the letter from the lender showing they are released from the car title.
  • Do bring along your driver license. You will need to prove you are a resident of Colorado, and the easiest way to do this is by presenting your driver license. Your license must also be valid.
  • Do bring along your past few months of pay stubs. In order to verify you have the income available to repay your pawn loan, you will have to show verifiable income. Your pay stubs are this proof.
  • Do bring along a list of personal references. You may be required to provide three to five personal references, including their names, addresses, and contact phone numbers.
  • Do bring along your employment information. You will need to know the address and phone number and your supervisor’s name.
  • Do clean up your vehicle. To ensure you get the best value and loan offer, take the time to detail your car.
  • Do make sure you are the legal owner of the vehicle. A car pawn shop is legally required to verify you are the legal owner of any car you want to sell or pawn.
  • Do know how much you want to borrow. You will be asked how much you want to borrow for your pawn loan. You do not have to borrow the amount offered for your vehicle; you can request a lower amount if that is all you need.
  • Do value your vehicle yourself. It is worth your time to get an idea of what your car is worth before visiting a car pawn shop.
  • Do read through all the paperwork and your car pawn contract before signing. It is important you understand how long you have to repay your loan and how much you will need to pay back. If you have any questions or concerns, this is the time to ask. Once the contract is signed, you are bound to its terms and conditions.
  • Do make sure to pay off your pawn loan on time. If you want to avoid added fees and/or interest, you should make every effort to pay off the loan by its due date. Doing so will also get your vehicle back sooner.
  • Do take advantage of other vehicles you can pawn for cash. Some pawn shops will accept RVs, boats, motorcycles, and other types of vehicles as collateral for a car pawn loan.Don'ts Of Pawning Your Vehicle


DON’Ts of Pawning Your Vehicle 

  • Don’t expect to get a pawn loan and drive your car home. An auto pawn loan requires you to leave your vehicle at the pawn shop until it is repaid. During this time, the pawn shop will park your car in a secure location where it will be kept safe.
  • Don’t expect to get full resale value for your vehicle. Vehicle pawn shops will not give you the full resale value on a pawn loan. Rather, they approve you for a percentage of the vehicle’s value, based on the condition of the vehicle and how much you can afford to repay, which is typically based on wholesale values.
  • Don’t expect to get a huge amount for older vehicles or vehicles in poor condition. Car values decrease the older the vehicle is or when it is in poor condition. If you have an older vehicle or one that is in poor condition, it is highly recommended to contact the car pawn shop directly and ask if you can use it to get a pawn loan.
  • Don’t believe all the bad things you may have heard about pawn loans and pawn shops. Most people have fears they are going to be ripped off, but that is not the case. Pawn shops are heavily regulated by numerous federal, state, and local regulations, statutes, and laws. Most pawn shops are honest businesses that provide help when you need to get cash quickly.
  • Don’t pay off your pawn loan if you don’t want the car back. If you simply want to sell your car for quick cash, you can. Just be sure to let the pawn shop know if you decide you don’t want your car so they know they can go ahead and close out your loan and sell your vehicle.
  • Don’t be afraid to ask questions if you don’t understand anything. If you are not sure how a pawn loan works, how much you have to pay back, deadlines, and other details, ask questions.
  • Don’t feel obligated to get a pawn loan. After having your vehicle valued and finding out how much you can get by pawning it, you are free to change your mind. You are never under any obligation where you must get an auto pawn loan.
  • Don’t let your car insurance lapse. If you plan on keeping your vehicle, you do have to keep car insurance on it, even while it is at the pawn shop.
  • Don’t let your plates expire. Just like car insurance, you have to keep your plates valid, even when you have a pawn loan.
  • Don’t be afraid to ask for an extension if you are having problems paying back your pawn loan. Most pawn shops will offer you the option to extend your loan if you are not able to pay it in full by the end of your car pawn contract. Just keep in mind, there is an additional fee you will owe each time you extend the loan. You may also have to return to the pawn shop and re-sign your paperwork.

As you can see, there are many dos and don’ts of getting a car pawn loan. Most importantly, it is a good idea to choose a car pawn shop that is experienced in car pawn loans, like Massa Auto Pawn & Sales. We are here to help you get the cash you need, along with great customer service.   

For further information about auto pawn loans or to find out how much your car is worth, please feel free to stop by your nearest Massa Auto Pawn & Sales location in Colorado or call us at 720.598.0081 today!