Guide to Pawning Your Car in South Africa in 2024

We offer a general guide to pawning your car in South Africa in 2024. It will assist anyone who is considering borrowing funds against a vehicle.

What to avoid when pawning a vehicle in SA

Pawning a car offers immediate access to cash. Anyone can get a short-term loan against a fully paid-up vehicle, notwithstanding their credit score or financial track record.

Unfortunately, there are unscrupulous operators in this sector. We highlight a few factors to consider when pawning a vehicle in South Africa.

Pawn and still drive it schemes

Pawn and still drive it schemes appear to be the ideal solution. You get cash up front and have the use of your car.

In reality, as reported in the Daily Maverick, these arrangements are sophisticated scams. This is how they work.

The vehicle is “purchased” by the lender. A monthly rental rate is levied for the use of the car until the loan is repaid in one lump sum.

If you default on any of the monthly “rental” payments, the vehicle is taken from you – sometimes forcibly. By entering into a “sales” agreement, rather than a loan agreement, there’s no legal recourse.

These types of deals are not pawn transactions. As a result, the majority of pawn and drive schemes are not subject to the National Credit Act, and the Regulator can’t intervene on your behalf.

Any agreement that involves signing over ownership at the outset

If you’re expected to transfer ownership of the vehicle to the finance provider in exchange for the loan – beware. You’re basically surrendering the vehicle for a fraction of its value.

If things go wrong – and they often do – the lender is the legal owner of the car, and there’s nothing you can do about it.

Legitimate car pawn companies only take ownership of a vehicle once they have exhausted all other options, such as extending the loan or relaxing the repayment terms.

Car pawn offers in classified ads

Platforms like Gumtree and Ads Africa have their uses but, when it comes to loans, too many scams are promoted via these channels.

Always deal directly with a finance provider accredited by the National Credit Regulator (NCR) or Financial Sector Conduct Authority (FSCA). That way, you have legal recourse if you believe you have been treated unfairly.

Agreeing to meet providers – except at verified branch locations

The only safe way to get a car pawn loan in South Africa is at the offices of a reputable finance company.

Even then, it’s advisable to carry out due diligence and conduct a drive-by of the branch location before risking your material possessions and sometimes your life.

What are the requirements of pawning a car in South Africa?

A loan provider only lends money against a car that’s fully paid up and free of finance.

Documents proving who you are, where you live and that you are the registered owner of the car are required to support the pawn agreement. An ID document, recent utility bill with your current address, and the car’s original registration papers made out in your name are ideal.

While it’s possible to pawn older vehicles, it may be a struggle to secure a loan for a very old car or one in poor condition.

Some loan providers only offer loans against luxury or high-end vehicles. Others favour vehicles that aren’t older than 10 years, unless the vehicles have recognised market value as classic cars.

That said, always get clarification of the pawn loan requirements directly from the loan provider.

When pawning a car is a good idea

Pawning a car is a hassle-free way to raise funds over the short-term to cover the costs of:

  • medical or dental emergencies
  • a family vacation
  • household repairs or renovations
  • fluctuations in business cash flow
  • investing in inventory, materials or equipment
  • debt consolidation
  • wedding expenses.

How to get the best deal when pawning your car in South Africa

When you choose a well-established, reputable loan provider, you’re assured of a fair deal. An expert appraiser will accurately determine the value of your car based on its make, model, condition and market value.

A clean, polished and well-maintained vehicle with a complete service record, good condition tyres, spare key and all the road safety and repair accessories will get a higher appraisal value – and you’ll get a loan amount reflecting that.

By carefully negotiating terms, you can get a deal that best suits your requirements. The key is to fully understand the terms before signing the agreement.

What happens when you pawn a car

When you pawn a car, the vehicle is used to secure the loan. It is retained by the lender and placed in safe keeping until the loan and interest are repaid in full.

While in the lender’s care, your car is off-limits to everyone. Depending on the provider, the car may or may not be insured.

At the end of the term, the vehicle is returned to you, along with the registration certificate.

Questions to ask when pawning a car in South Africa in 2024

If you want to avoid common pitfalls and get a car pawn loan that’s safe, fair and above board, ask these questions to prospective loan providers.

  1. Is your company, or its parent company, a registered financial services provider?
  2. If so, what is the registration number and which institution is it registered with?
  3. What is the interest rate and terms of repayment?
  4. Where will the vehicle be stored and is insurance included?
  5. What security measures are in place at the vehicle storage facility?
  6. Is a penalty incurred for early settlement of the loan?
  7. Are there admin fees or any other charges beyond the fees specified in the agreement?
  8. Can the repayment period be extended?

Why consider Pawn My Car as a short-term loan provider

Pawn My Car is a division of a reputable financial services company registered with the NCR and FSCA. We operate branches in all major South African cities, and offer fair, market-related short-term loans against cars.

Our interest rates are competitive and the repayment terms are flexible. Your vehicle is safely stored in an access-controlled facility with perimeter fencing, exterior lighting and the services of an armed response team.

Contact us on 0861 112 866 or complete a loan application online now.

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)




Want discreet finance?

We'll give you a loan against your vehicle in 4 easy steps.

Share to...