How Much Can I Borrow Against a Car?
To get quick access to cash, an asset like a paid-off car can be used as collateral on a short-term loan.
If you plan to borrow against a car in South Africa, Pawn My Car can help. We have branches in Cape Town, Sandton, Gqeberha (Port Elizabeth) and Durban.
Jump to section:
- how the loan offer is determined
- getting an instant loan offer
- when to borrow against a car
- what documents are needed
- why use Pawn My Car.
What determines how much you can borrow
When you borrow money against a car, the value of the loan you’re offered by the lender is a percentage of the resale value of the vehicle.
This is because, in the unlikely event that you can’t repay the loan, the car is sold to cover the loan amount.
At Pawn My Car, we offer loans ranging from thousands of rands all the way up to R10 million.
How to get an instant loan offer
At Pawn My car, you can get an instant loan offer when you apply online for an asset-based loan. This provisional short-term loan quote will give you an idea of how much you can borrow.
Once the vehicle has been brought in for a final appraisal, we’ll be able to confirm the loan amount and proceed with the application.
When it makes sense to borrow against a car
If you need access to money in a hurry, borrowing against a car is a quick and easy way to get a short-term loan. This money could be to cover an unexpected expense or to take advantage of a never-to-be-repeated opportunity.
If you know you’ll have the funds to pay back the loan in a few months, the loan can act as bridging finance until then.
This type of loan means you don’t have to sell your vehicle to get access to funds. You can get the loan, use the money as needed, pay it off in a few months and still own the car.
What you need to borrow against a car
To use your vehicle to borrow money, it will need to be paid off and must be registered in your name. You’ll need to submit the following documents along with your application:
- a copy of your ID
- proof of residence
- the original vehicle registration certificate.
To maximise the amount you can borrow, ensure that your car has up-to-date service records, tyres in good condition, a spare tyre and jack, a spare key and the vehicle licence is up to date.
Borrow against a car with Pawn My Car
Pawn My Car is an established financial services provider with branches all over South Africa. Our interest rates are NCR compliant and our loans have no hidden fees or early settlement penalties.
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.
For more details about how much you can borrow against a car, contact us on 0861 112 866 – or simply complete and submit our online application form.
