All well-maintained cars have intrinsic worth, including older model SUVs, sedans and sports cars.

At Pawn My Car, we issue loans against all types of vehicles – age notwithstanding. When a vehicle has resale value, it can be used to secure funding.

Car pawn loans are quick, easy and discreet financing solutions. They’re readily available to all South Africans, regardless of employment status or credit record.

Here’s what you need to know about pawn loans – against older vehicles in South Africa – and new ones.

How car pawn loans work

Car pawn loans are based on the secured lending model. Funds are released against the vehicle, which is held in safekeeping by the lender.

The car is available for collection once the loan, plus the accrued interest, is paid back within an agreed time period.

When the terms of the contract are breached, and the loan is not repaid in full, the lender has the right to sell the vehicle and use the proceeds to cover the losses.

Loans against older vehicles – qualifying criteria

There are only two criteria that must be fulfilled in order to qualify for a loan against a vehicle. The car must be:

• free of finance
• registered in the name of the applicant.

As the loan is secured, there’s no need for the lender to conduct credit checks or request proof of income.

The only documents required to support the application are the vehicle’s original registration papers and copies of the applicant’s ID and proof of residence.

How much can you borrow against an older model vehicle?

Loan amounts correlate with a percentage of the appraised resale value of the vehicle.

Vintage or collectible cars, for instance, command high prices. The loans available against these cars can reach tens of millions of rands.

Owners of older model vehicles can anticipate loans of anything between R20,000 and R10 million or more. These factors are taken into account when determining fair resale value and the loan amount:

• make and model
• condition
• service history
• mileage
• provenance.

When to consider taking a vehicle-backed loan

Car pawn loans are designed for South Africans who need short-term access to funds. They’re a low-risk alternative to personal loans from banks and other micro-lenders.

Provided there’s sufficient income to cover the monthly loan instalments, leveraging the value of the second family car – or a vintage coupe sitting in the garage – is the easiest way to borrow money.

Why use Pawn My Car as a loan provider?

Pawn My Car is an accredited finance provider with branches in major South African cities. We offer a streamlined loan application process online or via our call centre.

Following an initial no-obligation offer of a loan, your vehicle is expertly appraised to determine fair resale value. A legally binding agreement, clearly outlining the terms of the loan, is drawn up and signed.

The vehicle is stored at a secure, access-controlled and fully-insured facility. Funds are transferred into your bank account within 24 hours.

When you take a loan through Pawn My Car, you are assured of:

• fair interest rates
• transparent terms
• secure vehicle storage
• no early settlement penalties
• peace of mind.

Pawn My Car is a division of Lamna Financial Services, a company accredited with the Financial Services Board and National Credit Regulator. Call us on 0861 112 866 or chat to us via WhatsApp now.

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