6 Myths About Auto Pawn Loans
There are a number of events in life that can pop up at a moment’s notice. While you may be able to prepare for some situations, such as with earthquake insurance or by taking precautions before a flood, there are others that come out of nowhere. When you find yourself facing a financial obstacle, it is important to explore your options so that you can get the assistance you need while putting yourself and your family in the best position moving forward. One resource for fast cash that you may have heard of is getting an auto pawn loan.
However, people may not know what a vehicle pawn entails. Over the years, the practice has, unfortunately, developed a reputation that has led people to misunderstand how these loans work and what their expectations should be when working with a company. It is important to dispel these common myths about car pawns and provide information individuals need to navigate the loan process so you can get the valuable financial assistance you need if you find yourself in such a situation.
Myth 1: “It Is Too Difficult to Apply for a Loan”
Many people assume that applying for a loan by pawning their cars is difficult, and, therefore, they do not want to explore their options. However, receiving a quote for a pawn loan and completing the application is a quick and convenient process that results in relief. According to an article by USA Today, the Federal Reserve’s report near the end of 2017 found that the average American household is carrying approximately $137,000 in debt. By taking a few minutes to start an application for an auto pawn loan, individuals can get the financial assistance they need in order to pay down debt.
The application begins by locating the ownership paperwork for your vehicle. Once you have the title in hand and your photo ID, you can request a free quote online to gauge the pawn value of your vehicle. This will enable you to plan for how you will use your loan money and understand the amount that you will be required to pay back when the time comes.
At Massa Auto Pawn & Sales, you can visit one of five locations in Colorado to have your vehicle appraised for free. You will be able to pawn virtually any vehicle and receive information on how much you will receive for your loan in just minutes.
Myth 2: “Lenders Have Hidden Fees Designed to Hurt You”
Some people may be turned away from pursuing a pawn loan for their vehicle because they do not want to deal with the fine print and be tricked by fees. However, this is an issue that applies to specific lenders instead of the industry as a whole. Your vehicle pawn lender should be upfront with how much you will receive for your loan, as well as the interest rate and length of the loan so that you know exactly what you are getting into before you sign on the dotted line.
A reputable lender, such as Massa Auto Pawn & Sales, is not in the business of tricking customers into paying hidden fees or having exorbitant penalties kick in after a period of time. With Massa Auto Pawn & Sales, you pay a flat percentage of your overall loan, which lasts for 30 days. If you need to extend your loan, you will know what your total repayment amount will be before the agreement goes into effect.
Myth 3: “These Loans Are Only for Those with Good Credit”
Nothing could be further from the truth. There is no need to shy away from an auto pawn loan just because you have poor credit or no credit at all. Especially when you are in need of a short-term loan like the one you get for an auto pawn, you don’t want to pass up an opportunity that can help you in a pinch.
The reason why lenders do not care about credit score is that you are putting up your vehicle as collateral for the loan. While banks and financial institutions use your credit score to gain confidence that you will repay the money over time, pawn lenders know that if you fail to repay then they will retain possession of the car.
Myth 4: “Money Won’t Be Available Right Away”
Another area of concern for individuals seeking out a loan is that the money they’ll receive won’t be available for use right away. Depending on the type of pawn loan and where you go, you may face varying processes that hold your money until the next business day or attempt to deposit money in your bank account, which can also take a few days. Massa Auto Pawn & Sales operates differently.
Following the fast appraisal and discussion of terms with the customer, Massa Auto Pawn & Sales finalizes paperwork and helps ensure that the money you need can be used right away. You will receive a check that can be deposited or cashed immediately, and the entire auto pawn loan process takes about 20 minutes to complete. Not only will you be able to get back to your busy schedule, you will also have the money you need in hand without having to wait.
Myth 5: “The Lender Is Going to Sell Your Car”
There is no reason to worry about the security of your vehicle while you have an open auto pawn loan. People are scared that as soon as they hand over the title and vehicle the lender is going to resell the car with no way to get it back. However, this is another myth that is all too common among individuals. The fact is that your vehicle will be stored securely at an onsite facility that is closed to the public.
This ensures that it is not placed on sale while your loan is outstanding, and your vehicle will also be kept safe in the meantime. It is important to note that you have the opportunity of keeping the money and allowing the lender to sell your car and, if you default on your loan, the lender has the legal right to keep the vehicle.
Myth 6: “Auto Pawn Loans Are Not for You”
Don’t write off the benefits of taking out a vehicle pawn loan. You may think that this type of short-term solution is not for you and your family, but it is important to research all of your options before going forward. The fact remains that when you are in a bind and need cash fast, vehicle pawn loans can help you get back into a more comfortable situation.
Learn more about the process and benefits of an auto pawn loan by connecting with a representative at Massa Auto Pawn & Sales in Colorado. Get a free quote online and visit one of five locations to get the ball rolling.