Car Title Loan Definitions – Pink Slip Loan and Auto Pawn
This post is to help individuals better understand terms related to car title loans. Some popular terms used to describe a car title loan are:
- auto title loan
- title loan
- vehicle title loan
- automobile title loan
- title car loan
Throughout the country, car title loans are referred to with different terms depending on one’s location. For some basic information about car title loans, see What is a Car Title Loan?
In California, a car title loan is sometimes referred to as a pink slip loan. This is because in the California Certificate of Title is often called a “pink slip.” Therefore, a car title loan and pink slip loan essentially mean the exact same thing. The car title, or pink slip, is used as collateral to secure a loan.
Another term often used to describe a car title loan is “auto pawn.” However, this term is more confusing as it carries two meanings. While with some companies, an auto pawn is the same thing as a title loan, with other companies, it is something different. An auto pawn also refers to a loan where the car is used as collateral rather than the title. Like pawning jewelry, an auto pawn is when the lender, or pawn broker, holds onto the car until the loan amount is paid off. This is different from a car title loan because with a title loan, the borrower can continue to drive their car.
