You can pawn your car for cash in Georgia. Many lenders, pawnshops and title loan companies offer cash in exchange of your personal car or commercial vehicle along with its title. Both title loan and auto pawn are legal in the state of Georgia. However, there is no distinct law pertaining to pawnshops or pawnbrokers. The law pertaining to title loan does not apply to pawning. Existing laws pertaining to pawning are applied to auto pawns. When you pawn your car for cash in Georgia, you are not applying for title loans. You are effectively seeking a cash advance against the value of your car. Here is a comprehensive guide detailing how to pawn your car for cash in Georgia.
The Qualifying Criteria
A borrower needs to own a car, commercial vehicle or automobile. It could also be a motorcycle. The borrower must own the vehicle outright. There should be no unpaid car loan at the time of pawning the vehicle. Pawnshops require outright ownership and hence transfer of title of the vehicle. This is not possible if a financial institution or bank has not handed over the lien to the owner of the car.
A borrower should have a state issued identification. This has to be a photo identity. Borrowers can use driver’s license or other forms of id. A borrower needs to provide basic personal details such as full name, residential address, date of birth and in some cases financial details such as employment status and monthly income. Pawnshops usually don’t verify the income or employment status. However, they do verify the identification and ownership of the car. This is why borrowers must have the title and the car with them at the time of pawning.
To complete the process, a borrower should fill up a form with all necessary details. The car or vehicle would be inspected. The title will be checked. The value of the car would be assessed to determine how much money can be offered using the automobile as security or collateral. The borrower will give up the title and the vehicle for a period of time, as agreed upon by both parties, and leave with the approved cash in hand.
The Pawning Process
According to Titlelo, a title loan lender in Georgia, there is two ways you can pawn your car for cash in Georgia. You can apply online and then visit the pawnshop or office of the auto pawn company. You can directly visit the office without any online application and initiate the process. Most auto pawn companies advertise that they can complete the whole process in half an hour. This is true if you have all the details handy. If you have the ids, the title of your car and the car, then the official staff at an auto pawnshop can inspect the car, verify the id and the title, process the application and offer you cash in half an hour. This effortless convenience is one of the reasons why many people choose to pawn their vehicle for cash in the state.
The amount you can ask for will depend on the policy of the pawnshop or auto pawn company and the value of your car. If the resale value of your car is ten thousand dollars, then that is the maximum you can ask for. If your car is valued at twenty thousand dollars as per prevailing market conditions, then that is the maximum you can apply for. However, most pawnshops or companies will not oblige you with the maximum. They will offer you an amount that is short of the actual resale value. If your vehicle can be resold, to a dealer or at an auction, for fifteen thousand dollars, then you are likely to get up to ten thousand dollars. Some lenders will offer around twelve thousand or a bit more. Every pawnshop or auto pawn company has a policy that stipulates how much they will offer based on the market value or resale value of a vehicle. Some lenders do not offer more than five thousand as per the policy. This is regardless of the value of the car. Some lenders will offer as much as fifteen thousand.
Repayment and Repossession
Borrowers can pawn a car for cash, leave the car and the title with the pawnshop or auto pawn company. There will be a repayment period, which could be a month or substantially longer. The pawnshop will hold the title and keep the car till the end of the repayment period. If a borrower repays the full amount with the interest accrued through the period, then one gets back the car and the title.
Unlike title loans, a borrower does not get to keep the car when it is pawned. This is one reason why pawning offers more cash in exchange of the car. It is not rare for companies to offer the full amount, equivalent to the resale value of the car, when borrowers use the vehicle as collateral. Title loans will at the most qualify a borrower to ask for up to 40% or at the most 50% of the present market value of their car as the loan amount.
Pawning can allow borrowers to capitalize on almost the entire resale value of a vehicle. The interest levied on the amount lent in case of pawning is not very different from the annual percentage rates applicable for title loans. However, there can be lower or higher rates of interest depending on the pawnshop or auto pawn company.