In today’s harsh economic times, it’s increasingly difficult to get a loan. Traditional lenders, like banks, have tightened loan approval processes.

The good news is a loan against car papers offers a same-day payment and competitive interest rates. A loan against a car uses the embedded value of a car, truck, motorbike or boat as collateral.

Anyone who owns a fully paid-up vehicle is eligible for an asset-based loan.

Where to get a loan against car papers in South Africa

Pawn My Car is a registered finance company specialising in same-day loans against car papers.

We have a countrywide network of vehicle appraisers, loan administrators and managers. Our physical branches are located in Johannesburg, Cape Town, Port Elizabeth and Durban.

How the loan process works with Pawn My Car

All that’s required to initiate the Pawn My Car loan process is the vehicle’s details. Once we’ve assessed the current market value of the car, we make an initial offer of what we’re prepared to lend you, over the telephone.

If you agree to the loan amount, the car is physically inspected at one of the Pawn My Car branches. If all is in order, a loan agreement is drawn up and signed by both parties.

The car, and the original car papers, are handed over to us for safe-keeping. The funds are transferred into your bank account – on the same day.

Why we don’t recommend pawn-your-car-and-drive schemes

The vast majority of pawn-and-drive schemes in South Africa contravene the National Credit Act. They’re illegal, unregulated and predatory in nature.

Pawn-and-drive schemes may seem like the ideal solution to cash-flow issues, but they’re expensive and high risk.

Comparison to other short-term loan options

Why apply for a loan against car papers rather than a payday loan or personal bank loan?

First, ease of access. Anybody in South Africa is eligible for a vehicle-backed loan, regardless of credit score or financial history.

Second, we don’t require proof of income, recent bank statements or a letter of employment. We don’t carry out affordability assessments. This is because the loans we offer are based solely on the value of the assets our clients provide as security.

That’s precisely why we’re able to offer a streamlined, same-day loans-provision service.

Third, we offer flexible repayment terms customised to individual client requirements. Our interest rates are affordable, we charge industry-standard fees and we don’t penalise clients for early loan settlement.

A final advantage is that our transactions are completely confidential. A loan with us won’t affect your credit score – and we don’t share information with banks or any other third parties.

What to consider before getting a loan against car papers

It’s vitally important to remember that a loan against car papers is only as good as the finance provider.

If the provider isn’t registered with the National Credit Regulator, and does not have physical branches, there’s no recourse if things go wrong.

As with all contractual agreements, the devil is in the detail. Before signing on the dotted line, find out what other loan providers charge in terms of fees and interest. Most importantly, what happens if the repayments can’t be met?

When the cost of the loan is way above the industry standards or the company is not prepared to re-negotiate repayment terms, it’s time to look around for an alternative finance provider.

A car is a valuable asset. If there aren’t sufficient means to pay back the borrowed funds, the car is sold to recoup the losses.

With that in mind, it’s important to carefully weigh up the pros and cons of taking a loan against car papers through a legitimate company, like Pawn My Car.

Pawn My Car

With Pawn My Car, as well as a loan against car papers, you can use a fully paid-up bakkie, truck or boat that’s in your name to secure a loan quickly and easily, with no delays or laborious paperwork.

For more information, contact us on 0861 112 866 or simply complete and submit our online application form.

Complete an application now