How Can I Pawn my Car Title?

February 03, 2020 - Vehicles

Did you know that approximately 30 million Americans pawn their property each year?

For those who need cash fast, the best way is to pawn their property. Although most people pawn jewelry and technology, you can also pawn car titles.

When you pawn your car title, this approach won’t have a hindering credit check that can damage your credit score. You also won’t have to worry about not getting approved by a bank or other lender. Plus, you’ll have the convenience of being able to continue driving your car so there’s no disruption to your life!

As with any pawn contract, you’ll want to get the best deal. When you use the equity of your car title for a pawn it’s recommended you use PawnGuru. Instead of spending tedious amounts of time getting your car appraised by a dozen different pawnshops, you can list it once and figure out who will give you the best interest rates & payment plans. This is important! Your car is worth a substantial amount of money.

Do you have a car you’d like sell very quick? Most people don’t realize that pawn shops buy (and loan on) cars in a variety of conditions. Whether it’s nearly new or best used for parts, pawn shops present a good alternative to dealerships and traditional used car buyers for quickness. They’re also a compelling and much more lucrative alternative to the scrap heap for cars that don’t function well, particularly if you’re looking to sell.

Pawn shops can buy or give you a loan on a car based on its value, just like any asset you own free-and-clear. When people decided to sell their car, they often leave it on their driveway with a sale sign on display, post an ad to a website, or sell to a used car dealership. The problem with these options are they all take forever to receive offers, and can lead to protracted negotiations – think of the proverbial “tire kicker”. Pawn shops are great for their convenience and ability to offer instant, clear value.

Read the following tips before you visit a pawn shop near you. They will prepare you and your car to get the best cash offer at the right pawn shop.

How the Process Works

Like any other item, you can bring in your car to a pawn shop to get cash for it. However, before you show up at a pawn shop, you should make sure they’re willing to take it.

The process of pawning the car is for those who are not convinced they want to part ways with their car forever. A pawnbroker might not offer you the exact value of the car, but it will get you cash fast.

Clean Up the Car Before You Sell It

If you show up at the pawn shop with a dirty vehicle, the pawnbroker might not offer as much as you want.

Before you take your car in, clean out the trash, wash it, and vacuum the inside. A clean car might get you a little bit more money.

You can buy new windshield wipers and air fresheners if your budget allows it.

Establish the Value of the Car

You don’t want to go to the pawnbroker without knowing how much your vehicle is worth. Do your research to find out the value of your car.

You can look at sites like the Kelley Blue Book, or ask a car dealer how much they would pay for your car. Keep in mind that pawn shops are resellers and will offer you a price lower than the Kelley Blue Book price.

Will You Pawn or Sell?

Decide if you want to sell your car or simply get a loan? The amount you get for the car will depend on whether or not you want to pawn or sell it.

a. Sell- If you decide to sell your car, show the pawnbroker the car title and negotiate a price around the value of the car.

  1. Pawn – the same process as selling your car except you negotiate a contractual price and timeline for repayment to get your car back.

I. Storage option – When pawning a car you have the option of having it stored by the pawnbroker until you pay your loan off in full.

II. Non-Storage option — Option of getting a loan on your title .When you get a car title loan, your vehicle is not stored, you get to keep driving your car, but the lender keeps the car title  becoming the legal owner of the vehicle until you pay your loan off in full.

Find Your Car Title

Also known as a “pink slip”, this is the all-important piece of paper you need. You need to prove you are the owner of the vehicle (not the bank!) This is the collateral the shop will use to hold while it loans you money. No title?

Go to your local DMV office for a replacement title before you go to the pawn shop. Title in hand? Great!

Make sure the name on the title matches the name on your identification. You can’t pawn what you don’t own. If the name on the title is different than yours, you can’t get a loan on that title.

Following up on that idea, if anyone else has a loan or lien out on the auto, you don’t own it- and you can’t pawn your car if it isn’t 100% yours. Some pawn shops will work with you if you are close, though, so do try.

Remember, you can pawn your car and still drive it! This is a good deal so you can still get to work.

Grab Your Backup Documents

You are going to need your official government-issued ID. Your 7th-grade library card from Bernice Harrell Chipman Junior High doesn’t count. No ID or drivers license? Head back to the DMV for a replacement.

You will also need proof of income (check stubs or a bank statement) and proof of residence. For proof of residence, you will need a piece of mail like a utility bill or your rental contract. Pawn shops want to make sure you have the ability to pay back the loan

If you don’t have these documents, do your best. Some pawn shops may be able to help you.

Go and Pawn It

Not every shop does this type of loan. You can wear your fingers out calling each shop in the book to get the best price, but why? You can start the search and application process online!

Search our database for immediate access to pawn shops that will loan you money on your title and let you drive away in your car. Or list your need and have pawn shops compete for your business with their best deal.

All you do is upload an accurate description of your car and a photo. You might want to clean it up a bit and take the photo from a good angle. Then find a comfortable chair to sit in while you wait for offers.

Pawning car titles isn’t too difficult if you follow the three steps above. Now, all that’s left is accept an offer, sign the paperwork and drive off into the sunset with a fist full of cash.

Different states have different regulations surrounding pawning car titles so you’ll need to do a little homework in your state before contacting the pawn shop. In most cases, terms are from 30-60 days.

Keep in mind that interest rates for pawn loans can be quite outrageous depending on where you live. Again, different states offer different laws but the rule of thumb is generally somewhere around 25 percent which can add up quickly. This equates to an annual percentage rate of 300 percent.


You’ll need to make sure you can pay the loan back within the specified terms or you could risk repossession of your vehicle. Some lenders provide a grace period but others don’t. Make sure you know your options up front.

Responsible Borrowing

It can be a risky decision to pawn your car title with the high interest rates and low terms. It’s easy to get stuck in an endless cycle of paying only the interest and not making a dent in the actual loan. Make sure you can pay the funds back before the interest starts piling up to avoid this outcome.

Pawning Car Titles: The Bottom Line

Pawning car titles is for those who need money at a moment’s notice. Before you go, make sure you own your car title, do your research, and sign the contract.

If you need to sell your car, for example in the case of having an older car you no longer use, then pawn shops are a great option because they’re quicker than any other selling method.

Millions have used PawnGuru to get the cash they need by pawning their equity and commodities for some-day cash. Not only can you get the money you need but you can ensure you’re getting the most money for the best interest rate.


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