is it safe to pawn your or/cr?





08/12/2020



There are risks to pawning so it's best to be informed.





Interested in pawning off your car’s OR/CR? Better read these tips and warnings before moving forward with that decision.


Pawning your car’s title (OR/CR) is possible. However, there are some risks involved. Before considering it as an option, make sure that you have your finances in order and have the capability to pay. Pawning off your car’s title should be a last resort in the event that you will need cash.



What you will need





Here is where it gets a bit technical, typically a loan company will ask for the original OR/CR of the vehicle, proof of billing, proof of income, and at least two valid IDs. This is usually the minimum needed for a title or OR/CR loan.


The OR/CR must be in the name of the person applying for the loan. For second-hand vehicles, an absolute deed of sale can be allowed in place of the OR/CR. This serves as proof of ownership and that the vehicle has been fully paid for.


If the vehicle being pawned out is under financing or is encumbered in a bank, the loaning company can offer a buyout for the vehicle. Depending on the company, they will offer certain percentages for the buyout. This is ideal for those who want to keep their vehicle and don't want their unit to become foreclosed.



Inspection and loan terms





Once the documents have been submitted and checked through, a sales associate or inspector will inspect the vehicle and conduct an assessment. The assessment dictates the value of your vehicle and in turn, how much you will be able to get out of your pawn.


The value of the vehicle will also depend on its market value. Each loan company may have differing opinions about your vehicle’s market value so take note of the assessments. The market value will also depend on the mileage and general condition of your vehicle. The better it is the more likely you will get more for it. It's also best to do research on the market value of your vehicle as well so you will know what it's actually worth. Once the terms between you and the company have been sorted out, they will then proceed to give you the money for the pawn. The money given will either be in the form of cold cash or a check.


Credits: AutoDeal - https://bit.ly/3agxJyY