15 Nov How does a Car Pawn Loan Work?
Before I discuss how a car pawn loan works exactly, it’s perhaps better to discuss who can qualify for one.
If you have a fully paid-up motor vehicle of any sort, chances are you can qualify for one.
It’s important to note that your vehicle must be paid up and must be in your name.
These are the ground rules for getting a car pawn loan, and they’re the same at any company you go to.
You can’t get a loan against a vehicle the bank owns, and you cant get a loan on a vehicle somebody else owns, that should be common sense.
How does a car pawn loan work?
We’ve established the vehicle must be in your name and must be fully paid up, here’s how it works.
Your paid-up vehicle is an asset.
In other words it has value.
Let’s say for example your vehicle is worth R100,000.
You can raise money against the value of the R100,000.
If you need R50,000 for example, no problem. You can’t however raise more money than what the vehicle is worth.
The Loan Process
Below are the key steps involved in a car pawn or asset based loan.
1. Vehicle Assessment
Before you can raise money against your vehicle, you need to have it assessed.
This is easy to do and only requires you visit one of our local offices.
We will look at the make, model, year and general condition of the vehicle.
We then compare that to the Blue book or market value of the vehicle.
Please be aware that this value is typically a little less than the retail value, but not by much.
2. Loan Offer
Once we have assessed your vehicles overall condition and market value, we make you a loan offer.
We will ask you how much money you need and give you a fair market offer based on your vehicle assessment.
You can then choose to accept or decline the loan offer.
3. Money in Your Account
Once you have accepted the loan offer and agreed to the loan repayment terms, we will instantly send money to your local bank account by EFT.
We do not keep cash on the premises for security reasons but loans are instant and funds will reflect indoor account immediately.
This entire loan process typically takes less than 30 minutes.
4. Pawn to Stay or Drive?
An option you need to consider during the loan process is wether you want to keep your car and still drive it, or store it in our secure facility until the loan is repaid.
If you want to pawn your car and still drive it, we need to fit it with a GPS tracking device.
We have professional installers at every office location and this is done very quickly.
We are also the only Car Pawn Loan company in South Africa that currently offers the pawn to drive service.
The alternative is the pawn to stay option.
Your loan repayment rates are slightly lower with this option as there is less risk involved for us.
Our offices offer secure storage facilities where your car is kept until the loan is repaid.
Who needs a car pawn loan?
Anyone who needs cash fast and does not want to go through the mountain of red tape at a bank.
Using your vehicle to secure a loan is a very straightforward process.
If you go to a bank or other financial services institution you will also be asked to put up collateral to secure the loan. Nobody hands out money without some sort of guarantee they can get it back if you default.
The car pawn loan process is just simpler as there less intensive credit and background checks.
Where can I get a car pawn loan?
We have four offices in South Africa conveniently located in Johannesburg, Pretoria, Bloemfontein and Cape Town.
You can call the customer support numbers to schedule an appointment or visit a nearby location.
Anybody with a fully paid-up car in good working condition can apply for a car pawn loan.
The process typically takes less than 30 minutes and funds are instantly deposited in your bank account via EFT.
We have four convenient country wide locations and you can choose pawn to stay or pawn to drive and keep your car.
For more information don’t hesitate to contact a friendly asset loan advisor today.