Title Loan vs Auto Pawn


After yesterday’s post, I received quite a few requests for some clarification between what a title loan is compared to an auto pawn. In Alabama and Georgia the laws there require title loan lenders to call a title loan an “auto pawn.” These two types of loans are identical except for the name, for the most part. The basic gist of an auto pawn loan is you are borrowing money from a lender based on the value of your car. The lender in turn charges you interest on the loan and holds your vehicle title as collateral. All of the approved auto pawn providers that this blog endorses operate like traditional title loans operations, not to be confused with some auto pawn providers that actually keep the borrowers vehicle in an impound lot until the loan is repaid. It never made sense to me to keep someone’s vehicle, usually their primary transportation to and from work, locked away during the course of a title loan or auto pawn. Like all short term loans, be sure to ask all the specifics with an auto pawn, the same as any other type of short-term loan. If you want to visit an approved Auto Pawn Lender in Georgia, click here. For an approved Auto Pawn Lender in Alabama, click here.

Thursday, January 7th, 2010 Uncategorized