Ask these 5 questions to help figure out if pawning a vehicle is a good idea for you
Pawn shops can offer an excellent solution for people who need extra cash in a hurry and don’t want to deal with the credit checks, income checks, and delays that come with getting a loan from a bank. When you bring a valuable such as a car, truck, SUV, motorhome, or other vehicle to Gems & Jewelry Inc., we can give you a collateral loan immediately. We simply take possession of the vehicle and hand you a receipt and your cash. Before you sign a deal with us or any other pawn shop, be sure you get answers to the following 5 questions.
Is the Vehicle Worth Pawning?
In other words, why are you trying to pawn the vehicle instead of just selling it? This is a question you must ask yourself before bringing your vehicle to a pawn shop. Possible reasons to pawn instead of sell include the desire to get the exact vehicle back, or the need to avoid tax liabilities related to a sale.
Where Will it Be Stored?
You should definitely look into where the pawn shop will store your vehicle. After all, you wouldn’t want your vehicle to become damaged, get stolen, or be exposed to the elements unnecessarily while in the pawn shop’s care. Gems & Jewelry Inc. has a secure storage facility where we keep all of the vehicles we’ve accepted as collateral for loans, so you know your vehicle will be safe with us.
Does the Pawn Shop Have Insurance?
If something does happen to your vehicle, you want to know that you will be compensated for the loss. Gems & Jewelry Inc. has an insurance policy covering everything in our facility so in the unlikely even your item gets damaged or stolen, we will be able to repay you.
How Much Cash Can You Get?
Another important question to ask is how much cash you can receive in exchange for your vehicle. At Gems & Jewelry Inc., we have expert appraisers that can help with the valuation of your vehicle, so you know you will get a fair price from us. We are also happy to look at your own appraisal and valuation documents and take those into consideration.
What Fees May Apply?
Always, ALWAYS make sure you understand all the interest and fees that can apply to your collateral loan. In addition to monthly interest, there may be fees for storage or for losing your ticket or receipt. Generally, the bigger your loan is the lower the interest rate will be, but you will still end up responsible for large monthly payments. Be sure to have a plan for repaying the loan before you hand over your vehicle as collateral.
