Borrow Money Against Your Car in Cape Town, PE, Johannesburg or Durban

Borrow Money Against Your Car in Cape Town, PE, Johannesburg or Durban

borrow money against your car

When most people find themselves in need of extra cash, they usually borrow money from a bank or go to a short-term personal lender.

These options have downsides. Traditional bank loans can take too long. Short-term lenders can trap you in a cycle of debt.

Borrowing money against your car can be the fastest and safest option.

Borrowing money against a vehicle

Borrowing money against your car is often a low-risk method of getting a quick loan. This means offering up your vehicle as collateral on a short-term loan.

The loan amount is capped at the same resale value as your car. The vehicle can be sold if you default on the loan.

The reason this is considered low risk is because you can’t get trapped in debt you can’t repay. The worst that can happen is you lose your car.

The process of borrowing money against your car

These are the steps you must take to borrow money against your vehicle:

  1. Contact the lender online to start the process.
  2. Take your vehicle in for a final evaluation.
  3. Read the loan offer and accept it if you’re happy.
  4. Surrender your vehicle to the lender for secure storage.
  5. The loan amount is paid directly into your bank account within 24 hours.
  6. Pay back the loan in instalments, including the interest.
  7. Once repaid, your car is returned to you and your ownership is unaffected.

Documents you need

The application process for borrowing money against a vehicle is quick, simple and transparent. Make sure you have submitted all the necessary documents and information so the loan can be finalised quickly.

To prevent delays, have the following ready before you go ahead with the loan application:

  • your ID book or card
  • proof of residence no older than three months
  • the vehicle’s original registration certificate
  • the vehicle’s spare key
  • an up-to-date vehicle licence
  • proof of a good service record (optional but a big help).

To maximise your loan amount, ensure your car is clean and undamaged. Check the tyres are in good shape and the spare tyre and jack are in place.

What to consider before borrowing against a car

Before you borrow money against your vehicle, find a reputable lender. There are many unregulated lenders who charge exorbitant interest rates or claim ownership of your car.

Avoid any lender who claims you can still drive your car during the loan term. These so-called pawn-and-drive schemes are dangerous. You could lose ownership of your car – even if you pay off the loan in full.

Look out for the following red flags:

  • having to sign ownership over to the lender
  • no NCR compliancy
  • high interest rates
  • unexpected fees or early-settlement penalties
  • any mention of “buying back your vehicle” at the end of the loan term
  • lenders without a physical office or website.

Why Pawn My Car?

Pawn My Car is a registered, asset-based lender with offices in Cape Town, Johannesburg, Durban and Port Elizabeth. We’re registered with the Financial Services Board and regulated by the NCR.

We offer loans based on all types of vehicle, including trucks, boats, motorcycles, caravans, bakkies, older cars and vintage cars.

The benefits of using Pawn My Car include:

  • we’re an established lender
  • our interest rates are NCR compliant
  • you can get a loan even if you’re unemployed
  • the loan value is not based on your credit score
  • our loans don’t affect your credit score
  • there are no hidden fees or early settlement penalties.

For more information, contact us on 0861 112 866 or simply complete and submit our online application form.

Complete an application now

APR & Loan period

Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.


All accounts may be renewed if they are up to date.


All payments are made via EFT or direct deposits into Lamna’s bank account. There are no debit orders.


Non-payments may result in the matters being escalated.

Illustrative example

Client borrows R10,000 for 90 days.

Repayment Period
Monthly Repayment
Total Cost of Loan
Monthly Fee
(Interest + Service Charge)
Loan Amount


Repayment Period

3 months

Monthly Repayment


Total Cost of Loan


Initiation Fee


Monthly Fee (Interest + Service Charge)