How Does a Vehicle Pawn Shop Decide How Much to Offer for Used Cars?
Selling your vehicle pawn shop is a great way to get cash quickly, especially when you need it now. It can take several months or longer to attempt to sell your car yourself. This is not a good solution when you want cash today. This is where a pawn shop can help speed up the process without all the delays or other issues that can often arise when selling a car yourself.
Best of all, you don’t have to sell your car if you just want to use it as collateral to get a car loan. However, you will not be able to drive the car until you pay back your auto pawn loan. Whether you decide to sell your car or pawn it, the process of valuing the car is the same.
The auto pawn shop will value your car using several different factors, including:
- Make: The brand of vehicle you own influences how much it is worth. Some brands are more popular than others, so this could help increase its value.
- Model: Some models are worth more than others. If you have a high-demand vehicle, then you could get more when you sell or pawn it. For instance, crossovers are very popular right now. If you have a crossover, you could possibly get more for it.
- Year: How old the vehicle is influences its value. Vehicles that are less than five years old tend to be worth more than ones that are older.
- Mileage: The number of miles on the vehicle affects its value. The lower number of miles, the better it can be when valuing the vehicle.
- Condition: The condition of the exterior and interior are equally important. If there are dents, dings, stains in the upholstery, and other blemishes, it can lower the vehicle’s value.
Preparing Your Vehicle for Pawning or Selling at a Vehicle Pawn Shop
The first thing you will want to do is find out how much your car is worth. There are a few websites that offer online car appraisals. Keep in mind, you want to be as honest as possible when valuing your car. Make sure to select any options and features on the vehicle only if they are working.
The value you get from these websites is an estimate. You have to take into account different values you can obtain, including:
- Wholesale Value
- Dealer Trade-in Value
- Self Resale Value
The amount you can get for your vehicle at a car pawn shop is typically similar to the wholesale amount. However, if the vehicle is not in that great of shape, has excessive miles, and needs a ton of maintenance, then the amount offered could be lower than the actual wholesale value.
The next thing you should do is detail the car inside and out. If you were valuing a used car, would you give a higher value to one that was dirty or one that was clean? Taking the time to get stains out of upholstery, clean the carpet, and wash and wax the car can help improve its looks and its value.
Once your vehicle is cleaned up, make sure to do any needed maintenance, such as:
- Have the oil and oil filter changed.
- Top off all fluids.
- Change the air filter.
- Install new wiper blades.
- Check and verify that all headlights, turn signal lights, brake lights, and tail lights are working.
- Replace any burned-out lights.
- Make sure all four tires and wheels match and are in decent shape.
- Make sure you have your spare tire, car jack, and tire iron/lug nut wrench.
Next, you will want to find your car title. You will need the title to sell or pawn the vehicle at a car pawn shop. Now that you have prepared your vehicle, you are ready to sell or pawn it.
How Does Pawning a Car at a Vehicle Pawn Shop Work?
It is a good idea to call the vehicle pawn shop prior to stopping by to make sure someone will be there to appraise your car. Sometimes, appraisers are only available at certain times or on certain days.
The last thing you want to do is drive across town only to find out you have to come back later. Plus, if you speak to the appraiser prior to visiting, you may be able to set up a scheduled time with them so you won’t have to wait once you do arrive.
After you have your car appraised, you will be given the amount the pawn shop is willing to give you for an auto pawn loan or to buy the car outright. If you took the time to value your vehicle online, you will already know if this is a fair amount.
If you don’t like the amount being offered, you are under no obligation and can change your mind. If you like the amount being offered, then you will need to decide if you want to sell or pawn your car.
What Is the Difference Between Selling and Pawning My Car?
If you decide to sell your car, you sign the title over to the pawn shop. They will then resell your car on their used car lot. In exchange for the title and your car, you get the amount of cash they offered you after the appraisal right away.
With an auto pawn lawn, you leave your car at the pawn shop and walk out with the amount of cash you were offered. The pawn shop stores your vehicle in a secure location for the duration of the loan. Once your loan has been fully repaid, you pick up your car and drive it home.
If you are not sure whether you want to sell it or possibly get your car back later, then getting a loan would be a good choice. This will let you think it over and decide for sure which option is best for your situation. If you later decide you don’t want the car back, then you owe the pawn shop nothing on the loan.
How Much Time Do I Have to Pay Back My Auto Pawn Loan?
The amount of time you have to pay back your pawn loan will depend on the pawn shop and amount borrowed. Make sure to verify what time limits there are so you know how long you have to pay back the money owed on your car.
You will also want to ask what repayment options are offered. Some pawn shops may prefer you make weekly or bi-weekly payments, while others will allow you to pay one lump sum at the end of the loan period to get your vehicle back.
Last, make sure to ask if there are any options available where you can extend the loan if you cannot afford to pay it all back at the end of the original loan period. For example, our car pawn contract allows you to pay off your auto pawn loan at any time during the 30-day loan period.
You can make weekly or bi-weekly payments or one lump payment at the end of the loan period. Another option if you cannot pay the entire loan back within the period is to extend your car pawn contract another 30 days. If you decide at any point you don’t want the vehicle back, you simply leave it with us and owe nothing.
How Much Money Do I Have to Pay Back to Get My Car Back?
The amount of money you owe will depend on the amount borrowed and any interest and fees charged. Some vehicle pawn shops will charge both interest and fees, while others may only charge just interest or just fees. No matter which method the pawn shop uses, interest and fees have to be paid back, too.
The total amount you have to pay back will be the amount borrowed plus any interest and fees. For example, we charge a 10% fee every 30 days. So, if you got $1,000 for your vehicle, you would owe $1,100 at the end of the 30-day car pawn contact.
If you extended the pawn loan, then you would owe another 10% fee for the next 30 days. The amount of this fee may vary if you paid back part of the money you owed and the original fee. For example, you paid $600 toward your loan and still owe $500, and you want to extend for another 30 days. At the end of the second 30-day period, you would owe $550.
Please keep in mind, these are just examples to help give you a better idea of how much you could have to pay to get your car back. Always remember to read your car pawn contract and ask any questions before signing the paperwork.
To find out how much you could get for your car if you want to sell it or get an auto pawn loan to get cash quickly, please feel free to stop by your nearest Massa Auto Pawn & Sales location or call us at 720.598.0081 today!