Doug's Credit Center Blog

How to Pawn Stuff For Down Payment Money

Do you need to put a down payment on your next car to qualify for a loan with a great rate? If so, you may be wondering where you will find the money. The good news is that you can pawn stuff to get money for a low down payment on cars from local dealers. The best part is that you can pawn just about anything that you want.

Pawn Stuff For Money Down As A Short-Term Loan

Pawning an item for money down doesn’t mean that you are giving your stuff away in exchange for the cash. When you pawn an item you have several options such as:

  • Get A Short-Term Loan
  • Sell The Item Outright
  • Trade Your Item For Something Else Of Value

If you decide to pawn your item to use for a short-term car loan, you typically have 90 days to repay the money to get your item back. For example, if you are loaned $100 in exchange for a rare baseball card, you would have 90 days to repay that amount plus interest.

If you decide to sell or trade that item for someone else of value, you give up ownership of the item in exchange for cash. This can be useful if you have something of value that you don’t want or don’t expect to pay back a loan for.

Why Pawn Stuff For Money Down?

Pawning your stuff is easier than getting a traditional auto finance loan because the interest rate is lower, you can pawn the same item multiple times and you don’t lose anything other than your collateral if you fail to repay the loan. You also don’t have to deal with the pawn shop calling you constantly if you don’t repay the loan. That alone can be a good reason to pawn instead of taking out a loan elsewhere.

Pitfall To Pawning

The only pitfall to pawning is that you won’t get top dollar for your merchandise. This means that you should expect to get as little as 50 percent of its retail or market value from a pawn shop. However, this can make it easier to repay the amount that you have been loaned.

Pawning items can be a great way to get money for stuff that is just taking up space in your house. If you have to make a down payment for a car, pawning can be the fastest way to get the money you need.

This entry was posted in Finance. Bookmark the permalink.

Get Financing Now

Drive Now

Featured Finance Vehicles