Title Pawn

When it comes to getting quick cash, you may have heard of both title loans and title pawns. These options can provide financial relief when you need it most, but which one is right for you? The terms are often used interchangeably in casual conversation but there is a difference between a car title pawn and a car title loan. Here's a breakdown of each:

A car title loan is a short-term, high-interest loan where the borrower uses their vehicle title as collateral. The borrower retains possession of the vehicle while the lender holds the title until the loan is repaid.

These loans typically come with very high interest rates and short repayment periods, often around 30 days, although longer terms can be available. If the borrower fails to repay the loan on time, the lender has the right to repossess the vehicle to recoup the loan amount.

A car title pawn is similar to a car title loan in that it involves using the vehicle title as collateral. However, it is often structured more like a traditional pawn transaction. A pawn transaction often involves the borrower temporarily handing over both the vehicle and the title to the lender.

The borrower can reclaim the vehicle and title by repaying the loan plus any interest and fees within the agreed period. In some cases, the vehicle itself might be held by the lender during the loan term, although this is less common with title pawns compared to traditional pawn shop items.

How To Pawn A Car Title

Bring Your Vehicle

Bring your vehicle and clear title to one of our King Gold and Pawn locations, along with a valid government-issued photo ID.

Get A Free Appraisal

A knowledgeable member of our team will appraise your vehicle.

Get Cash Instantly

Leave our pawnshop with the cash you need immediately.

Main Differences Between A Car Title Loan And A Car Title Pawn

  • In a title loan, the borrower typically keeps the vehicle, while in a title pawn, the lender may take possession of the vehicle during the loan period (though this varies by lender and jurisdiction).

  • "Title loan" is the more common term in the U.S., while "title pawn" might be used in certain regions or by specific lenders to emphasize the pawn aspect of the transaction.

  • Regardless of the terminology, both types of loans carry significant risks due to high interest rates and the potential for losing the vehicle if the loan is not repaid. Most importantly, car title loans are ILLEGAL in New York.

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Beware! Car / Title Loans are illegal in New York State

Car Title Loans have seen a rise in popularity, promising the borrower quick cash for just sending in their car’s title. It sounds all so easy but it’s not because car title loans are illegal in New York State, as well as 34 other states.

New York State has strict usury laws that cap interest rates on loans, which effectively prohibit the high-interest rates typically associated with car title loans. Specifically, New York limits interest rates to 16% per year for most loans under $25,000, making it unfeasible for lenders to offer the high rates that are common in the car title loan industry.

These regulations are in place to protect consumers from predatory lending practices that can lead to cycles of debt and financial hardship. As a result, car title loans are not available in New York.

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Car Title Pawn

If you need a short term loan, instead of a car title loan, you can complete a car title pawn with King Gold and Pawn at any of our locations. Bring in your vehicle with a clear title for a free appraisal. If the appraisal amount and pawn terms are acceptable, the transaction only takes about 15 minutes to complete. If you are new to pawn and are curious how pawn works, we can walk you through the process step-by-step.

To complete the transaction, make sure to have a valid government-issued photo I.D. along with the clear title. You can leave your car in our possession as collateral and you can walkout with cash in your hand. Your vehicle will be safely stored in our facility until your pawn loan is paid and you pick it up. We offer extensions and renewals, where permitted by law, for greater flexibility. It’s easy and legal!

Need a Car Pawn Loan?

King Gold and Pawn has 7 locations across New York, including Brooklyn, the Bronx, Freeport, Lawrence and New Rochelle. Visit any of our pawn shops and an expert appraiser will work with you to give you the highest car title pawn possible. Or you can call 332-239-5406 and speak with one of our experts.

Request your Free Appraisal Today

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How Our Loan
Process Works

  • The minimum period for repayment of an AML loan is 60 days and the maximum period of repayment is 120 days or longer if you renew your AML loan.
  • You are not required to pay back the full loan amount for the first 120 days. If you pick up your loan the same day, you have to pay 1 month of interest (2.5%) for the purpose of securing and storing items in a vault.
  • Loans can be paid-off at any time during the loan term at no extra charge.
  • We will only charge for time in which the loan had a balance outstanding.
  • We do not charge interest on the interest amount added to the loan.
  • The Maximum Annual Percentage Rate (APR) for our AML Loans is 30%.
  • Here is an example of the total cost of an AML loan. If you borrow $100 for 120 days (4 months) at our monthly interest rate of 2.5% you would pay a total of $10 in interest for a total of $110.
  • All items will be returned to the borrower in the exact condition received after the loan balance has been paid in full. We hold the right to sell the collateral if the borrower fails to repay the loan as agreed.