The other option: a pawn transaction

On the other hand, if you enter into a "pawn transaction", Georgia law permits you to pledge a motor vehicle by giving the "pawnbroker" possession of the certificate of title. As a result, although you continue to operate the vehicle, the pawnbroker has legal title to the vehicle and also is considered to legally have possession of the vehicle. To recap, in a pawn transaction, you have agreed to pledge (think "conditional sale") the vehicle on the condition that the vehicle may be redeemed or repurchased by you for a fixed price within a fixed period of time set out in the pawn contract. The contract establishes a maturity date for the payment of the principal amount due plus interest and other charges unless the parties agree in writing to extend or continue the maturity date.

If a motor vehicle is pledged, Georgia law allows you to have an additional 3D-day "grace period" after the maturity date to redeem (or repurchase) the vehicle. A pledged vehicle not redeemed within the grace period is automatically forfeited to the pawnbroker. Contact one of our experienced attorneys to discuss your situation.

Stay tuned for Part II…