How to Determine Which Used Car to Purchase from a Vehicle Pawn Shop
When you are shopping around for a used car to purchase, don’t forget stopping by a vehicle pawn shop. Many people tend to forget they can find quality used vehicles at great prices at this type of used car dealer.
Shopping for a used car from a pawn shop is similar to shopping for one at normal used car dealerships. Before stopping by, it is a good idea to do some used-car-buying homework to ensure you arrive prepared to deal and drive your new used car home the same day.
Step 1: Decide how much car you can easily afford.
You want to make sure you can afford the used vehicle you want to buy. Prior to looking at makes, models, features, and options, you need to know how much cash you have available for a car payment.
The easiest way to decide how much you can spend on a used car is to make a list of all your monthly bills. Don’t forget to include the costs of full coverage car insurance and car maintenance like oil changes.
Other items you don’t want to forget to include as part of your monthly expenses include:
- Movie Rentals
- Streaming Services
- Cell Phone Bills
- Dining Out Expenses
- Entertainment Expenses
Once you have all your expenses written down, add them up to get the total monthly amount. Next, add up your monthly take-home income after taxes. The easiest way to get an idea of how much you bring home each month is just to add up four weeks’ worth of pay.
Last, subtract your expenses from your income. This will let you know how much you have left over each month that you could use to buy a car from a car pawn shop.
For example, let’s say you have $500 left over after subtracting your monthly expenses. While you could certainly use all $500 toward your car payment, this is not always best. Instead, you would want to take out a little money in case an emergency comes up. A good amount to use for a car payment would be between $300 and $400 a month.
Step 2: Decide what make and model car you want to buy.
Do you want a compact, mid-sized, full-sized, crossover, SUV, or pickup truck? Knowing what make and model you want will help save you time once you arrive at the vehicle pawn shop. You should also consider which types of features and options are the ones you want.
It can be worth your time to write down a list of “must-have” features and options, and another list that are ones you would like but could live without. For example, you might want air conditioning and an infotainment center that supports Apple CarPlay as “must-have” features. You could have a sunroof and premium wheels and tires as things you would like but could live without.
Step 3: Test drive the vehicle you want to buy.
You should never purchase a used vehicle without taking it for a test drive first. You want to make sure you like how it drives. If there is anything you don’t like, then you will know before you get a loan to buy the car.
For example, you might really like how a particular make and model looks, but, once you get behind the wheel, you find out it is too small and doesn’t have enough leg room or head room. That is perfectly okay, as there are lots of quality used vehicles to look at to help you find the one you like the best.
Step 4: Decide what type of financing you want to use to buy the vehicle.
You will have a few different financing options available at the car pawn shop. If you have good credit, you could apply for a traditional car loan through a bank or credit union. On the other hand, if your credit is so-so or bad or you have no credit, you could get approved with a buy-here-pay-here auto loan.
The main benefit of a buy-here-pay-here auto loan is you don’t have to wait for approval from a bank or credit union. The vehicle pawn shop reviews and approves buy-here-pay-here loans on the spot. This means you could show up, test drive the vehicle, and, after filling out paperwork, drive it home the very same day!
Can I Trade-In My Current Vehicle at a Vehicle Pawn Shop?
Just like regular used car dealers, you can trade-in your current vehicle at a vehicle pawn shop. Your car is appraised and valued based on its condition, mileage, make, and model year. You just need to make sure your car title is clear and free and there are no liens against it.
Unlike regular used car dealers, you do have a few options on how you may want to use the cash you get from your trade-in. You could use all of it toward the down payment. You could also use part of the cash toward the down payment on the used vehicle you want to buy and keep part of the cash for yourself.
Can I Get Cash for Any Extra Vehicles I Don’t Need?
Another benefit of shopping for used cars at a car pawn shop is you can sell any extra vehicles you do not need. They just need to be paid in full and have a clear and free title. You can use all that extra cash you get to pay down your bills, splurge on something special for yourself, or put toward the down payment on a newer model used vehicle.
What if I Don’t Want to Buy a Used Car and Just Want to Sell One?
Even if you don’t want to buy a used car, you can pawn your vehicle for cash with an auto pawn loan. With this type of loan, you have the option of getting your vehicle back if you change your mind and decide you want to keep your car.
You will have a set period of time to pay back the money. If you decide you don’t want to do this, then the vehicle pawn shop will keep your vehicle and resell it on its used car lot.
Is It Better to Pawn a Vehicle or Sell It Myself?
It can be hard and difficult to sell a vehicle yourself. You have to advertise the vehicle for sale. You have to deal with people calling and asking about the car. Plus, interested people will want to test drive it.
Not to mention, even if you find someone who wants to buy it, you could have to wait for them to get an auto loan before they can pay you. If things fall through and they cannot get financing, you are stuck trying to find another buyer.
The easiest way to avoid all these hassles and the time needed to sell a car yourself is to pawn it. When you pawn it, your car is appraised just like it would be if you were using it to buy another used car. You just need a clear and free title.
Once you get the offer of how much the pawn shop will pay for your car, you decide if you want to proceed. If you do, you fill out some paperwork and walk out with your cash-in-hand the same day! As you can see, there are no ads to place, phone calls to answer, or time to wait for someone to get the money together to buy your used car.
If you are looking to buy a quality used vehicle with easy buy-here-pay-here financing or want cash quickly for your used car, please feel free to stop by your nearest Massa Auto Pawn & Sales vehicle pawn shop location in Colorado or call us at 720.598.0081 today!