Frequently Asked Questions

Question: Why Can’t I Pawn a Car & Still Drive It?

Answer: Understanding Australian Pawnbroking Laws: In Australia, pawnbroking laws are designed to protect both the borrower and the lender, ensuring that assets used as collateral for loans are secure and retrievable if needed. When you pawn a car with us, or in-fact any item, you’re offering it as security for a loan, and the pawnbroker is entitled-indeed mandated-to hold onto that item until the loan is repaid.

• How Pawnbroking Works: When you bring an item to a pawn shop with the intention of pawning it, the pawnbroker will assess its value and usually offer you a loan based on that value. The item remains in the possession of the pawnbroker for the duration of the loan. If the loan is not repaid within the agreed-upon timeframe, the pawnbroker has the legal right to sell the item to recover the loan amount and any interest due. That is why, in a nut-shell, you can’t pawn a car and still drive it.

Question: I heard that a car Title loan is better?

Answer: At times, a loan secured against a car may be referred to as a “title loan” or “title pawn loan.” These terms are often used interchangeably, but there are important differences to note. The primary distinction lies in the possession of the vehicle during the loan repayment period. But, nevertheless, car title loans are not a thing in Australia. The effect of leaving your car with the pawn shop essentially mimics car title loan, the distinction being that you can’t hock or pawn a car and still drive it.

In contrast, a car title loan (available in the UK and most of the USA) allows you to retain possession of your vehicle while repaying the loan. However, unlike a title pawn loan, a title loan typically entails providing proof of income and undergoing a credit check. With an ordinary pawn loan in Australia you can’t hock, or pawn a car and still drive it. Thus making pawning your car very easy, and super quick without the need to carry out any credit checks.

Question: Why Doesn’t Australian Law Allow Me to Pawn My Car & Still drive it?

Pawnbroking has a rich historical tradition dating back centuries, offering individuals a means to secure short-term loans by providing personal possessions as collateral. Unlike traditional lenders who focus on creditworthiness, pawnbrokers assess loans based on the value of items offered as collateral. This originated in the UK, Europe and later, in the USA. One might say that Australia hasn’t kept up with the times as it were, preferring a traditionally pawnbroking approach to money lending.

This historical practice necessitates that pawnbrokers keep the goods pawned in their possession for several reasons. Firstly, it ensures physical control over the collateral, reducing the risk of fraud or default. Secondly, it allows for accurate assessment of the item’s condition and value, crucial for determining the loan amount.

Hence, when it comes to pawning a car, or motorcycle the physical possession of the vehicle is required, making it impractical to pawn only the car’s title and still drive it. This process aligns with the historical and practical principles of pawnbroking, ensuring security in loan transactions for both pawnbrokers and customers alike.

Pawn cash loans offer a flexible solution for various financial needs, allowing borrowers to use the funds for virtually any purpose without the need to disclose their intentions to the pawn shop. Whether you need to cover unexpected bills, make urgent repairs, or address other financial obligations, a pawn cash loan provides the freedom and discretion to use the money as needed. With no restrictions on usage and no requirement to divulge your plans, pawn cash loans offer a convenient and confidential way to access quick cash when you need it most. But, unfortunately the laws here do not allow you to hock, or pawn a car and still drive it.