How To Get the Best Deal When Pawning Your Car
Pawning your car is a fast and simple way to solve a cash-flow problem.
If you’re considering using your car as collateral for an asset-based loan, ensure that you get the best deal by preparing yourself, your car and your paperwork before you apply.
How to pawn your car
If you’re in need of funds and are the owner of a fully paid-off car, you can use the car as collateral for a short-term, asset-based loan.
The amount you can borrow against your car will depend on the car’s age, condition, mileage and service history, and market value. It may also depend on the length of the repayment period for the loan.
You’ll be required to repay a portion of the capital you borrow, with the agreed interest, each month until the loan has been repaid in full. Usually the car will be stored in a secure facility until this time (if it’s not, you’ll likely be offered a much lower loan amount, at higher interest).
To secure a car title loan, you can apply online. Then set up a meeting with the loan provider, take your car in for valuation and, if you agree to the terms, sign a contract.
If you have all the required documents on hand, the process should take less than an hour, and you can have the funds in your account on the same day.
Making sure you get the best loan offer for your car
Get the most for your car by ensuring that:
- you use a reputable pawnbroker
- your car is in good order
- you have all the required documents.
Finding a reputable pawnbroker
A reputable pawnbroker will offer you a fair deal – that is, a loan with interest rates that aren’t exorbitant and with no “weird and wonderful” hidden fees. It’s also important to find a trustworthy loan provider so you’ll know that your car is secure while it’s in the broker’s possession.
If you’re looking for a car pawnbroker online, protect yourself by sticking to sites that include details of actual branch locations – and if you have any doubts, call a branch to speak to someone directly.
Checking your car is in good order
It can help you get the best deal when pawning your car if you check that the car is clean, the tyres are in good condition, and a spare tyre and jack are in the vehicle.
Also make sure that your car licence is up to date and that you have your spare key. If you have a full service record for the vehicle, that may also add to the value of the loan you can get.
Documents you need to pawn a car
To pawn your car, you’ll need to provide a copy of your ID, proof of residence and the original registration certificate of the car.
If the car is registered in the name of a company, you’ll need cipro documents, company resolutions and a copy of the proxy’s ID.
Pawning a car with Pawn My Car
With Pawn My Car, you can use a car that’s in your name to secure a loan quickly and easily, with no delays and no hidden costs or clauses.
We have branches in Cape Town, Port Elizabeth, Bloemfontein, Sandton and Durban.
