One of the easiest ways of unlocking emergency funding is to use your car or another vehicle as collateral for a loan. This makes it possible to obtain needed funds, without having to sell your vehicle or risk damaging your credit rating.

If you’re thinking of pawning your car in Durban, it’s vital to do your research and use only a reputable loan provider.

How pawning a car for cash works

Pawning a car involves using a car to secure an asset-based loan – that is, a loan that uses an asset as collateral.

You provide details of the make and model of your vehicle, and the loan provider will typically arrange to have it appraised. You’ll then be given a loan offer, based on the market value of the vehicle.

To conclude a loan agreement, you’ll need the right documents to verify that the vehicle is fully paid up and in your name. Once the paperwork is complete, the funds are transferred into your account, often on the same day you applied.

How to pawn a vehicle in Durban: key considerations

Before you agree to pawn your car as security for a loan, there are some factors to consider.

Above all, make sure you have and fully understand all the terms of any loan agreement before you sign the dotted line. For example, verify that by taking a loan, you won’t automatically lose ownership of your vehicle. Also check that you won’t be liable for any hidden fees or unreasonable penalties.

We strongly advise against “pawn and drive” schemes, which are subject to a wide range of scams in South Africa. For more details, consider our article, Why You Should Never “Pawn and Drive” Your Car.

Generally, aim to use a loans provider that’s obviously well-established, with physical branches rather than just an online presence.

Questions to ask when pawning a car in Durban

Below we list some common questions to ask, along with answers specific to the service we provide at Pawn My Car.

• Is the loans provider trustworthy?
  Pawn My Car is a division of a company registered with the National Credit Regulator (NCR). That means you can approach the NCR to resolve any issues or disputes concerning a loan we provide. We’re also well-established, with physical branches across the country.
• Are the interest rates competitive?
  At Pawn My Car, we charge interest rates that comply with the NCR. The fees and interest rate are clearly visible on the loan agreement.
• Can I still drive my vehicle?
  No. At Pawn My Car, we hold your vehicle in safe-keeping until you’ve repaid your loan and agreed interest. As we pointed out above, we advise against “pawn and drive” schemes. Generally, they sound too good to be true because they are.
• Will my vehicle be safe if I pawn it?
  With Pawn My Car, your vehicle is stored in a high-security, access-controlled facility for the duration of the loan. No-one is allowed to drive your car while it’s in safe-keeping.
• Will the value of my vehicle be assessed fairly?
  We base our assessment on the age, condition and mileage of the car. We also take the service history and current dealer value of your car into account prior to offering you an instant cash loan.

Where to pawn your car in Durban

At Pawn My Car in Durban, we offer fast, discrete loans against paid-up vehicles, with no “funny business.” We comply fully with National Credit Regulations, don’t charge any hidden fees and don’t share information with credit bureaux or any other third parties.

Our offices in Durban are located on 77 Sydney Road, Congela. The branch is open from 9:00 to 17:00, Monday to Friday.

For more information about pawning your car in Durban, contact us on 0861 112 866 or simply complete and submit our online application form.

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