An auto pawn is a loan offered to people where valuable items such as a valuable car, SUV, or trucks serve as collateral. Auto pawn loans offer loans worth your car. Servicing the loan on time allows the lenders to return the valuable item. Failure to pay the loan and interest on-time results in your car being sold.
The lender keeps the automobile and places it in a secure place until the loan is paid. Where customers have trouble servicing the auto pawn, a rollover loan may be requested from the lenders.
How To Qualify For An Auto Pawn
It is quite easy for automobile owners to qualify for a loan. Here are the necessary qualifications for one to qualify for an auto pawn loan:
Clear Vehicle Ownership
Auto pawn is given to people who show clear car ownership. It means that you have serviced any loan incurred when purchasing the automobile. Background checks are run to see if the customer has pawned the car's title to another lender.
Auto pawn loans are solely eligible for people of legal age. Lenders also ask for an ID to prevent motor vehicle thieves from pawning stolen cars.
Cars with body or mechanical damage are ineligible for pawning. Lenders require documents to prove that their car is well maintained.