X
menu

Why an Auto Pawn May Be Right for You

auto-pawn-dealerFinding money for emergency needs poses a big challenge for many hard-working men and women in Colorado. For many, just one unexpected misfortune can cause severe financial hardship, especially men and women with poor credit.

There is one asset that many people have sitting in their driveway or garage that they can use to secure the funds they need in a time of crisis—their automobile. Auto pawn loans provide immediate cash for people in need of a quick cash infusion. If you’re looking to pawn cars in Colorado Springs or Lakewood, there are a few things you need to know about this type of loan to get the best deal and avoid surprises.

What Is an Auto Pawn?

car-for-quick-cashAn auto pawn loan is a loan backed by collateral—your car, truck, or SUV.  When you obtain an auto pawn loan, you’ll receive money for your vehicle. If you pay back the loan and interest within the time period of the loan, you’ll regain your car. If you fail to repay the loan, the vehicle will be sold.

Consumers often get auto pawn loans mixed up with car title loans, but these two types of loans are quite different. In an auto title loan, you leave only the title to the vehicle with the lender. If you fail to repay the loan, the lender will have the automobile repossessed. Title loans are illegal in Colorado, and state officials are aggressive in enforcing this law.

In an auto pawn loan, you leave the automobile with the lender, who will put it away in a secure location. Should you fail to repay the loan, the lender will put it up for sale to recoup his or her losses. If you’re having difficulty repaying the auto pawn loan in time, you can obtain a rollover loan that gives you more time.

Qualifying for an Auto Pawn Loan

For auto owners looking to pawn vehicles in Lakewood, the good news is that it’s fairly easy to qualify for an auto pawn loan. There are a few qualifications you must meet, however, including:

  • car-engineVehicle ownership – To qualify for an auto pawn loan, you must have free and clear ownership of the vehicle. That means that you must have paid off any loan you took out to purchase the vehicle. Lenders will also check to see if you’ve pawned the title to the vehicle to another lender.
  • Age & ID – You’ll need to be of legal age to pawn your vehicle. That age will vary from state to state. Here in Colorado, you need to be 18 to pawn your vehicle. Your lender will also ask for an ID to ensure that you are who you claim to be. This is done to prevent car thieves from pawning vehicles that do not belong to them.
  • Good condition – Auto pawn lenders aren’t interested in lemons. Your vehicle must be in good condition with no significant body damage or major mechanical problems. Auto pawn lenders will require paperwork or an inspection to ensure that the vehicle runs well and has no major cosmetic issues. The condition of your vehicle may affect the size of your loan, so, before taking it to the auto pawn store, do yourself a favor and clean it up.
Most auto pawn will pay a portion of the retail value of your vehicle based on the condition and mileage of your vehicle. This keeps lenders from being overexposed to losses and keeps you from borrowing more than you can pay back in just a few months. Auto pawn borrowers have a good rate of success in repaying their loans. According to Vanderbilt University, just 10 percent of pawned vehicles end up being repossessed by lenders.

Pawning your vehicle is a big decision. An auto pawn loan will deprive you of the use of your vehicle, so you’ll need to arrange alternate transportation. You’ll also need to come up with a plan to repay the loan within the time set in your agreement with the lender. However, for people facing dire financial circumstances, auto pawn loans can provide a critical lifeline of cash.

Best-Selling U.S. Cars & Trucks

Popular cars and trucks have an excellent chance of getting a good value at an auto pawn shop. If you’re looking for fast cash for vehicles, these popular 2015 automobiles will likely get you a good value.

Vehicle

Number Sold

Hyundai Elantra

208,319

Jeep Grand Cherokee

212,273

Nissan Sentra

214,709

GMC Sierra

221,680

Chevrolet Malibu

227,881

Chevrolet Equinox

242,195

Ford Explorer

248,507

Ford Fusion

265,840

Ford Escape

307,069

Nissan Altima

307,380

Nissan Rogue

329,904

Honda Accord

345,225

Toyota RAV4

352,139

Honda CR-V

357,335

Toyota Corolla

360,483

Honda Civic

366,927

Toyota Camry

388,616

RAM Truck

489,418

Chevrolet Silverado

574,876

Ford F-Series

820,799

 

America’s Precarious Finances

pawn-cars-for-fast-cashAlmost a decade after the Great Recession, many Americans remain financially challenged. Although unemployment has rebounded from the depths of the darkest days of the recession, the number of quality jobs has not grown.

While Colorado’s economy is strong compared to the rest of the country, a lot of people still face uphill battles with their finances. Many workers’ wages have remained stagnant while the cost of living continues to grow. The lack of wage growth has limited many Coloradans’ ability to save for emergencies and the future.

According to The Motley Fool, more than half of Americans have savings account balances of less than $1,000. That’s hardly enough money to pay for a serious home repair or medical need. For these workers, an auto pawn loan can provide a critical financial lifeline in their time of need.

When looking for an auto pawn loan provider, it’s important to find a business with a reputation for honesty and fair dealing with clients. A well-established company is your best bet, as its longevity will likely be based on integrity and excellent service.

Massa Auto Pawn & Sales, a family-owned company, provides auto owners with the opportunity to get cash quickly when they need it most. Massa Auto Pawn & Sales is Colorado’s oldest and largest auto pawn, and it has provided auto owners looking to pawn cars in Lakewood the service and support they need for more than 25 years. If you’re looking for fast cash for vehicles, visit Massa Auto Pawn & Sales today.

X
X