How to Get a Loan Against a Vehicle

How to Get a Loan Against a Vehicle

Car loan

People may need short-term loans for all kinds of reasons. Even with the best-laid plans, sometimes there’s no avoiding unforeseen financial pressures.

If you need to solve a cash flow problem, securing a loan against a paid-up vehicle could be the solution.

Why use your vehicle to secure a short-term loan

Before granting loans, traditional lenders like banks want to make sure you’re likely to pay back what you borrow. They’re also subject to stringent lending standards, which means they have to collect and process specific information before approving loans.

One result is that if you have a less than stellar credit rating, or if your company has a debt-to-capital ratio greater than four or five to one, your chances of securing a bank loan are low.

A second result is that it takes time for banks to process loan applications.

In contrast, using a paid-up vehicle as collateral to obtain a short-term loan is quick and easy – there’s no lengthy application process and no income verification. You could have the funds you need in your account on the same day you apply.

There are other advantages too. You won’t have to sell your vehicle. You won’t be putting your other assets at risk. And the loan won’t have any bearing on your existing credit record.

How to pawn your car

The amount you can borrow against the value of your vehicle depends on its age, condition, mileage, service history, and trade and dealer values.

To get a loan for a car (or a motorbike, truck or even boat), simply contact a reputable lender, such as Pawn My Car, and provide as much detail as you can about the vehicle. You’ll be given an idea of the loan amount you can use the vehicle to secure straight away.

Then take the vehicle in for an on-site inspection, to make sure everything is in order. Before you do this, it’s a good idea to ensure that the car is clean, the tyres are in good condition and the boot includes a spare tyre and jack. Also make sure that your vehicle license is up to date, and ideally have the spare key and service records on hand. These factors may help maximise the loan value you’re offered.

If you choose to proceed with the loan, all that remains is to handle the required documentation. You’ll need to have:

  • a copy of your ID and proof of your residence
  • the original registration certificate for the vehicle
  • if the vehicle is registered in the name of a company, cipro documents, company resolutions and a copy of the proxy’s ID.

Once the loan agreement is finalised, the funds will be transferred to you electronically.

Why get a loan with Pawn My Car

Pawn My Car is registered with the National Credit Regulator, and our interest rates comply with the National Credit Act. We have offices in Sandton, Cape Town and Port Elizabeth, and are known for our fast, efficient, reliable service.

We offer same-day payment. We also accept early settlement of loans, without applying any penalties.

Also, we store vehicles only in highly secure facilities – so you can rest assured that once you’ve repaid a loan and agreed interest, your vehicle will be returned to you in the same condition you left it.

To apply for an asset-based loan from Pawn My Car, simply fill in our online form or call us on 0861 112 866.

Complete an application now