How To Borrow Against A Car
Pawning a vehicle is a quick, easy way to solve a short-term cash flow problem. But how do you go about borrowing against a car, and is this something you should consider?
Why consider borrowing against a vehicle
If you need cash quickly, using a fully paid up vehicle that’s in your name is a potential solution. You can choose to use a car or another vehicle, such as a small truck, motorbike or even a boat, as collateral for an asset-based loan.
Unlike a traditional bank loan, you won’t have to wait for the funds. There are no credit checks or inquiries into your personal financial situation because the value of your vehicle serves as surety for the loan.
The value of the loan you’re offered will depend on the value of the vehicle, taking factors like its model, age, condition, service history and trade value into account.
It’s true that if you default on repaying the loan, it could put your vehicle at risk. However, unlike other types of loans, you won’t be putting the rest of your assets – like your bank accounts, house or business – on the line.
How to get a loan using your car
With Pawn My Car, the process of borrowing against a car is quick, simple and transparent.
Simply contact our offices or fill in the application form on our website. There are no credit checks, and as long as the vehicle used as collateral is fully paid up and you’re it’s legal owner, the process should be hassle-free.
Once you’ve submitted an application, we’ll set up a meeting at one of our offices, in Cape Town, Durban, Bloemfontein or Sandton. We’ll then assess your vehicle and ask for a copy of your ID, proof of address, and vehicle registration certificate.
If the documentation is all in order, the process can take less than an hour – and you could have the funds in your account on the same day.
Your vehicle will be stored in a secure facility and, once you’ve repaid the loan and agreed interest, it will be returned to you in the same condition you left it.
Why use Pawn My Car?
When you borrow against a car with Pawn My Car,
- you can get cash the same day
- there are no credit checks and minimal paperwork – all we need is a copy of your ID, proof of address and vehicle registration
- our interest rates are in line with the National Credit Act
- your vehicle will be stored in a secure location for the duration of the loan
- the loan is private – we don’t provide information to credit bureaus, banks, or any other third parties
- there are no early settlement fees – if you’re able to repay your loan early, interest will stop as soon as the repayment reflects in our account.