Are you considering using a paid-off car for a loan in South Africa? Pawn My Car offers instant cash funding secured by a wide range of vehicles.

Here’s what you need to know about the approval process, repayment terms, how much you can borrow, and the types of vehicle-backed loans that are best avoided.

Using a car for a loan: how it works

The car for a loan financing solution involves a few easy steps.

You tell us about the car, online or over the phone. An initial loan amount is telephonically relayed to you. The vehicle is brought to a Pawn My Car branch for a full vehicle appraisal.

A loan agreement is signed. The car and the required documents are handed over. The funds are transferred into your bank account.

On completion of the loan term, the sedan, SUV, utility van or bakkie is available for collection.

How quickly can I exchange my car for a loan?

Loan applications are processed while you wait.

If all the supporting documents are handed over, borrowed funds are typically available within 24 hours.

How much money can I borrow against my car?

Pawn My Car offers a percentage of the car’s appraised fair market value in the form of a loan.

Do I need a good credit score to qualify for the car for loan scheme?

No. We don’t conduct credit checks or require proof of income or employment status.

Anyone with a paid-up car is eligible for a loan.

How long is a car for a loan agreement in South Africa?

Repayment periods range from three to 24 months.

Can I extend the loan repayment period?

Yes, as long as your monthly payments are up to date.

Are there early settlement or exit fees?

No. The only fees levied are a once-off initiation fee and monthly admin fees.

What documents are required to borrow cash against a car?

The following documents are required to support the loan:

• original car registration papers, made out in the loan applicant’s name
• a copy of the applicant’s ID and proof of residence.

Where is my car stored?

While in our care, your vehicle is insured and stored in a lock-up facility with state-of-the-art security features, exterior lighting, and the services of an armed response team.

Where can I exchange a car for a loan in South Africa?

Pawn My Car has branches in Cape Town, Johannesburg, Durban and Gqeberha (PE). We are open Monday to Friday, during normal office hours.

Loans can be initiated online or over the phone. Vehicle appraisals are by appointment only.

When a loan against a vehicle makes sense

Using a car for a loan can be a viable short-term solution – but only if you have the income to repay the loan.

This type of loan is designed to cover life’s unexpected surprises.

It may be a joyous family occasion, like a wedding or the birth of a grandchild. Or, it may be a medical emergency, roof repairs or vet’s bills.

For start-ups and small businesses, getting a loan against a car, bakkie or delivery van can be ideal. It provides instant access to capital when short-term cash flow is poor.

How many car loans can you have?

You can’t take more than one loan against the same car simultaneously. That said, you can secure separate loans against multiple vehicles.

Once you have paid off one loan, you can use the same car to secure a second, third or even fourth loan, providing each financing event is concluded as per the agreement.

Car loans of this kind have no impact on your credit rating. Pawn My Car does not share information with credit agencies.

A warning against ‘pawn-your-car-and-still-drive-it’ schemes

Not all car for loan schemes are recommended. In fact, the National Credit Regulator has issued a warning against ‘pawn-your-car-and-still-drive-it’ loans.

Here’s why these types of loans should be actively avoided.

Getting a loan for your car with Pawn My Car

Using your car for a loan in South Africa is a quick, convenient and low-risk way of raising short-term funds.

With Pawn My Car, you can use a car, bakkie, truck or boat that’s in your name to secure a loan quickly and easily, with no delays or laborious paperwork. We offer competitive interest rates, with no hidden charges or penalties.

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

Complete an application now