Is it Possible to Pawn a Financed Car

When it comes to managing your finances, sometimes unexpected circumstances can arise, leaving you in need of some quick cash. If you find yourself in such a situation and own a financed car, you may wonder if it's possible to pawn your car to unlock some funds. In this article, we will explore the question "Is it possible to pawn a financed car?" and provide you with all the essential information you need to know about this topic.

The Basics of Car Pawn Loans

Before delving into the specifics of pawning a financed car, it is important to understand what a car pawn loan is. A car pawn loan, also known as a car title loan or auto pawn loan, involves using your vehicle as collateral to secure a loan. Unlike traditional loans that rely on credit history and income, car pawn loans are based on the appraisal value of your vehicle.

To obtain a car pawn loan, you will need to provide the lender with your car's title, proof of ownership, and identification documents. The lender will assess the value of your car and determine the loan amount you are eligible for. Once the loan is approved, you will be required to surrender your car's title to the lender until the loan is fully repaid.

Pawning a Financed Car: The Challenges

Now, let's address the main question at hand: Is it possible to pawn a financed car? The answer to this question is not a straightforward one, as it depends on several factors.

One of the primary challenges of pawning a financed car is the existing lienholder. If your car is financed, it means that there is a lien on the vehicle's title, indicating that the lender has a security interest in the car until the loan is paid off. In most cases, the lienholder holds the physical title of the vehicle.

When you approach a pawnshop to pawn your car, they will require the title as collateral. However, since the title is held by the lienholder, you will not be able to provide the title to the pawnshop. This creates a significant barrier to pawning a financed car, as pawnshops typically require possession of the title during the loan period.

Options for Pawning a Financed Car

While pawning a financed car may be challenging, there are a few potential options worth exploring if you find yourself in need of quick cash.

Consult with Your Lienholder

The first step is to contact your lienholder and explain your financial situation. Depending on their policies and your payment history, they may be open to working out a solution. Some lienholders may be willing to temporarily release the title to allow you to pawn the car, but this will likely be contingent on your ability to continue making timely loan payments.

Refinance Your Car Loan

Another option is to explore refinancing your car loan. By refinancing, you may be able to negotiate better loan terms, lower interest rates, or even extend the loan period to reduce monthly payments. With a refinanced car loan, you may have a better chance of temporarily releasing the title from the lienholder, making it possible to pawn your car.

Seek Alternative Lenders

If your lienholder cannot grant you permission to pawn the car or you are unable to refinance your loan, you may consider seeking alternative lenders who specialize in car pawn loans for financed vehicles. These lenders may have more flexible requirements and be willing to work with you despite the existing lien on your car.

It is important to exercise caution when dealing with alternative lenders, as they may charge higher interest rates or have less favorable loan terms. Be sure to carefully review the terms and conditions before committing to a car pawn loan from an alternative lender.


In summary, pawning a financed car presents several challenges due to the existing lienholder and the requirement of possessing the car's title for collateral. While it may be difficult to pawn a car with an existing lien, it is not entirely impossible. Exploring options such as consulting with your lienholder, refinancing your car loan, or seeking alternative lenders specialized in car pawn loans for financed vehicles may increase your chances of obtaining the needed funds.

Before making any decisions, it is crucial to carefully evaluate your financial situation and consider the potential consequences of pawning your car. Always read and understand the terms and conditions of any loan agreement to ensure you can meet the repayment obligations.

24 October 2023
Written by John Roche