Motorcycle title pawns differ a bit from motorcycle title loans, so it’s important to understand the differences. With both of these title loan products, you’ve paid off your motorcycle loan and have a clean title. There is value to your motorcycle, and you need cash, so you borrow against the value of your motorcycle by offering the title as collateral.
With a traditional title loan, you continue to operate your motorcycle after receiving the cash. You must pay the money back on the loan’s due date and then you’re given the title back. For a motorcycle title pawn, the loan typically allows four months from the time of the loan to the day the money is due.
Two Big Differences With Motorcycle Title Pawns
Pawns work differently. The title loan company puts your motorcycle into storage until you’ve repaid the loan. You cannot use it during the duration of the motorcycle pawn. It’s safely stored at another location. When you pay the loan, you then get the title and motorcycle back. This eliminates the risk of the motorcycle being damaged or stolen while you owe money.
Paperwork is the other difference. With a motorcycle pawn loan, you only need to provide the motorcycle, proof of insurance, key, and title. A title loan also requires a photo ID, proof of income, and your current vehicle registration.
