| Irregular income, uncontrollable expenses, a credit | | | | lenders to reclaim your vehicle and therefore, |
| card used up to the maximum, and a family to | | | | they discourage you from defaulting by issuing |
| support-this is not an uncommon scenario. Where | | | | roll-over schemes, etc. |
| do go for emergency funds now? Are you | | | | • Some lenders may ask you to hand over a |
| thinking of pawning an item? Why not your car? | | | | duplicate set of keys. Although rules differ from |
| Your car could be a pawn item with a difference | | | | state to state, in extreme cases, some lenders |
| if you consider auto pawn loans. | | | | also insist on installing a GPS system in your |
| You can continue using it while you procure a loan | | | | vehicle so that they can track it down if they |
| against it to solve your financial problems. Your | | | | have to reclaim it. |
| car title document, and not your car, is considered | | | | • Auto pawn loan lenders generally lend only up |
| the pawn item or security. | | | | to 50 percent of the car's value. Since the car |
| Auto pawn loans are issued against your | | | | title used as security is worth at least twice as |
| automobile as security. It is the fastest way to | | | | much as the issued loan, borrowers will make an |
| get cash in an emergency and you do not have | | | | effort to repay on time, which works in the favor |
| to produce too many proof documents to get | | | | of lenders. |
| the loan application approved. Moreover, a bad | | | | • In case of a default, the lender may send an |
| credit score is by no means an obstacle in | | | | agent to your residence or work place to |
| procuring auto pawn loans. | | | | recollect the vehicle. If the automobile is sold for |
| Auto pawn loans, however, differ from | | | | more than the debt amount, honest lenders |
| conventional pawn arrangements in the following | | | | return the profit earned through resale. On the |
| ways. | | | | contrary, if your vehicle sells for less than the |
| • Usually, pawnbrokers take possession of the | | | | remaining debt, you may have to cover the loss. |
| security item till the loan amount gets repaid but | | | | Some auto pawn loan lenders resort to deceptive |
| you don't have to give up your car in order to | | | | practices by blurring agreement clauses to earn |
| avail an auto pawn loan. You can continue using it | | | | profits. Therefore, to avoid a debt trap, be |
| while you repay the debt in the form of pink slips. | | | | extremely careful while reading the agreement |
| For this very reason, it becomes a lot harder for | | | | for hidden clauses, etc., before signing it. |