Q: What’s the difference between a pawn loan and a title loan?

• A: A pawn loan uses your vehcile as collateral, while a title loan allows you to keep driving your vehicle during the loan period. E-Pawn does not offer title loans.
  
  • The primary distinction lies in how your vehicle is used as collateral. With a pawn loan, your vehicle, a car or motorcycle for example, is held as security until the loan is repaid. On the other hand, a title loan allows you to retain possession and use of your vehicle throughout the loan period. While both options leverage the value of your vehicle, the choice between them depends on whether you prefer to maintain driving privileges or are comfortable temporarily parting with your vehicle as collateral. However, under the regulatory framework governing pawnbrokers in New South Wales, adherence to legal requirements mandates the retention of possession for goods pledged as collateral.