Blog List > What are Vehicle Pawn Loans?

What are Vehicle Pawn Loans?

Vehicle pawn loans have become a popular form of short-term lending, and for good reason. This is a great way to raise money quickly when you face an emergency financial situation.

A vehicle pawn loan works similarly to the traditional pawn process. If you’ve ever gone into a pawn shop to pawn off a personal item, then you’ll know exactly how the vehicle pawn process works.

Pawning off your vehicle is treated exactly like if pawning off your wedding ring, meaning that the vehicle pawn shop will hold onto your vehicle until you are able to pay off the entire balance of your loan.

Most vehicle pawn loans give you something like 30 to 90 days to pay back the loan, but here at City Loan we’re able to offer longer repayment periods for some customers.

City Loan offers vehicle pawn loans out of our headquarters in Long Beach, CA, but what separates us from the competition is that we’ve got an easy application process, a secure and covered facility to store the vehicles we hold for our customers, a longer repayment period for our pawn loans and competitive rates.

To get your own vehicle pawn loan today, call us now at 1-888-238-9085.

Types of Vehicle Pawn Loans

There are two main types of vehicle pawn loans: auto pawn loans, which uses the equity of your car to give you the cash you need, and motorcycle pawn loans, which can be convenient for those who would rather use their motorcycle as collateral instead of their car.

Reasons to Pawn Your Car

Many people choose to rely on this form of short term loan to raise cash for emergency financial situations, like:

  • Paying Bills
  • Making Rent
  • Covering Medical Expenses
  • Funding Mortgage Payments
  • Catching up on Student Loan Payments

Keep in mind that vehicle pawn loans can also be used to fund other expenses as well, like:

  1. Paying for a Vacation
  2. Buying Christmas or Birthday Presents
  3. Buying anything else that you might want or need

If you’re looking for a vehicle pawn loan in Long Beach, then you’ve come to the right spot. We understand that there are other lenders in the area, but you’ll be hard-pressed to find anyone anywhere who offers the same security and protection for your vehicle that we do.

Our facility is fully covered to protect our customer’s vehicles from the weather, and patrolled by a security guard 24/7 to ensure that everything remains where it should. Why get a pawn loan from one of our competitors, when we have competitive rates, longer repayment periods, and better security and protection for your vehicle?


What is the Vehicle Pawn Loan Process?

The first step you will need to take is to bring your vehicle in so that it can be evaluated and appraised. We’ll do a quick inspection of the vehicle to look for major issues (cosmetic and mechanical), come up with a value, then offer you a secured loan based on your car’s value.

If you agree to take our offer, we will finalize the paperwork and sign a pawn contract, specifying the terms of your loan (its value, the interest rate, the repayment period, etc.).  Please make sure to bring a valid driver’s license and proof of insurance to your vehicle evaluation.

Once you sign all required documents, we’ll take temporary possession of your vehicle, store it securely in our protected facility, and provide you with the money agreed upon for your loan.

Vehicle Pawn Loans vs. Other Types of Short Term Loans

In today’s economy there are various ways to raise cash quickly, but vehicle pawn loans are one of the easiest, fastest and best ways to do it. Here’s how they compare against other popular forms short-term loans:

Vehicle Pawn Loans vs. Traditional Bank Loans

If you are not in a hurry and are able to qualify for a loan from a traditional bank, then you should probably get it, as that’s usually the cheapest way to borrow money. However, for anyone in a hurry, or anyone with bad credit, banks won’t be able to help.

In fact, traditional bank loans can present some serious restrictions, especially if you need to raise a huge amount of cash in a short amount of time, or if you have any financial problems in your credit history report.

Here are a few of the restrictions that a traditional bank loan may present:

  • Traditional bank loans have a lengthy application process. It can take weeks and in some cases even months to get approved for a loan.
  • Traditional bank loans are usually only available for those who have an outstanding credit score.
  • Traditional bank loans are typically only given to cover certain expenses. (i.e. purchase of a house, a car or investing in a business).

Vehicle Pawn Loans vs. Payday Loans

Payday loans are arguably the most popular form of short-term, bad credit loans in existence.

What makes payday loans so popular is that they are extremely accessible, even to people with terrible credit. Virtually, anybody can be approved for a payday loan, because they are based on your regular income (rather than collateral, credit scores, or any other complicated indicator of your ability to pay back your debt). As long as you are currently employed and are able to provide proof of income, you should be able to get a payday loan.

However, what you will need to remember is that payday loans have been banned in several states for a reason; they are often labelled “predatory lending”, and can lead to outright disastrous financial circumstances.

Here are a few of the most important reasons why you should think twice before deciding to go with a payday loan:

  • You will need to provide proof of income. If you are unemployed, you probably won’t get approved for a loan.
  • Payday Loans typically only offer as much money as you’re set to receive in your next paycheck, so if you need lots of money, then they won’t be able to help.
  • Payday loans offer a very short repayment period. Typically, you will have to pay back the entire loan (plus fees and interest) by the time you get your next paycheck, which can be as short as 2 weeks.
  • If you are unable to pay back your payday loan on time, you will be hit with huge late penalty fees and may face massive interest rate spikes.

Vehicle Pawn Loans vs. Credit Card Cash Advances

Credit card cash advances are a far safer form of borrowing money than payday loans. However, credit card cash advances also come with a few significant restrictions of their own:

  • With a credit card cash advance you will likely only be allowed to borrow up to whatever is left on your credit card before reaching its limit, which may be just a few hundred bucks.
  • Credit card cash advances usually require you to have a great credit score, since they have to be approved by the credit card company.
  • You will need to have a credit card in order to receive a credit card cash advance, which means that people with terrible credit won’t be able to use this form of lending.

Tips for First Time Borrowers

If you need to raise some quick cash, then you should look into pawn loans from City Loan.

If you have never taken out a vehicle pawn loan, pink slip loan, or a car title loan, then here are a few tips you should consider to help make sure you don’t dig yourself into deeper financial trouble:

  • Your car needs to be under your name in order to use it as collateral.
  • You will need to have fully paid off your car (or have only a few remaining payments left).
  • You will need a car that is worth at least a couple thousand dollars (otherwise it won’t qualify for a loan).
  • Make sure you are able to pay back your loan on time. If you miss a payment, you may end up facing penalty fees and even repossession of your vehicle. It’s vital that you have a real plan in place to make all of your loan repayments on time.

Like every secured personal loan available, there are some risks attached to vehicle pawn loans, but as long as you’re able to make your payments, then you won’t run into any negative repercussions.


City Loan Long Beach Can Help

Even if you don’t have a great credit score, City Loan may still be able to help you raise large sums of money quickly.

City Loan offers the best vehicle pawn loans in Long Beach, and we’re ready to help you today. We’ll make it easy to pay back your loan with hassle-free monthly installments, and a variety of repayment options (online, over the phone, in person, etc.).

Compared to other vehicle pawn lenders, we’ve got a better, safer more protected storage facility, longer repayment periods and competitive rates. There’s a reason why so many people turn to City Loan when they run into financial trouble, and there’s a reason why so many of our customers come back to us on a regular basis. We really can help.

Our vehicle pawn loans are fast, easy and convenient, and we can get you the money you need within the same day that you request it. Even if you have a history of late payments, car repossessions, defaults, or even bankruptcies, City Loan may still be able help.

Fill our online form or call 1-888-238-9085 to find out how much you can get!