Pawning a Bakkie or Truck in South Africa: What to Consider
Find a reputable lender
The South African market is flooded with offers from “pawn your car” and “pawn your bakkie” offers, not all of them from reputable lenders. Unfortunately, the industry has become known for its scams and shady dealers, both online and off.
Before entering into an agreement to pawn a bakkie or truck, it’s a good idea to check that:
- the loan provider has been around for some time and, preferably, has multiple physical branches with convincing storefronts
- clients haven’t left warnings about scams or strongly negative reviews about the loan provider online
- you have and understand the full terms and conditions of a loan
- no hidden fees or penalties will be charged
- your ownership of the vehicle won’t be compromised simply by accepting a loan agreement
- nobody else will drive your vehicle while it’s held in safekeeping.
Avoid “pawn and drive” schemes
At least in theory, “pawn and drive” schemes sound appealing – you get to borrow money against a vehicle and still continue driving it.
In practice, this type of scheme is extremely risky and has been subject to a spate of scams. Typically, it involves signing over ownership of your vehicle. Effectively, you then buy it back once you’ve paid off the loan amount plus interest. Some companies will even charge you rent to drive the vehicle.
With this type of scheme, you stand a high risk of losing your car, bakkie or truck.
Find out more about why we strongly advise against pawn and drive schemes.
Getting an asset-based loan for a bakkie or truck with Pawn My Car
With Pawn My Car, you can use a car, bakkie, truck or boat that’s in your name to secure a loan quickly and easily, with no unnecessary risks.
Pawn My Car is a division of a specialist finance company that’s registered with the National Credit Regulator and has physical branches across South Africa.
We can offer an instant cash loan based on the appraised value of your vehicle. If you choose to proceed, we’ll then store your bakkie or truck in a secure facility and, once you’ve repaid the loan and agreed interest, return it to you in the same condition you left it. This process does not involve losing ownership of your vehicle, and nobody else will drive it.
Because your bakkie or truck secures the loan, we don’t require bank statements or employment records, and never trade information with credit bureaux or other third parties. We charge competitive interest rates, with no hidden fees or early settlement penalties – and typically, the funds you need will be transferred into your account on the same day you apply.