An auto pawn carries several different definitions throughout Arizona. Different companies use the term auto pawn to describe different types of services. Most often, an auto pawn is when a borrower pawns their car. This means that the borrower obtains a loan and uses their car as collateral. The lender holds onto the car for the duration of the auto pawn loan and returns it when the loan amount is paid off.
The term auto pawn is also used as a substitute for the term car title loan. Some companies define an auto pawn and car title loan as the same exact thing. Using this definition, the lender provides the borrower with cash in exchange for the borrower's vehicle title as collateral. When the loan amount is paid off, the title of the car is returned to the borrower.