How can I pawn my car and still drive it?
How exactly does pawn my car work?
Pawning includes using one’s vehicle as a form of collateral to secure a loan. The loan amount that's offered will be directly based on the assessed resale value of the car. For those that are in need of cash quickly, making use of a fully paid-up vehicle that is in onés name is a potential solution.
With some lenders, individuals will not be able to drive their vehicle for the duration of the loan, although it will stay in the individual’s name. The car will then be kept in a secure facility with high security and nobody else will drive it. Once the loan is repaid with agreed interest, the car will be returned to the owner.
Different from that of a traditional bank loan, individuals won't have to wait for the funds and the option to continue driving the car for a small monthly fee is available. The pawn a car and still drive process can be a complicated and time-consuming approval process that will require the submission of an application that includes payslips and bank statements.
If one’s application is approved, they may be asked to hand over ownership of their vehicle, which means that while the individual is still driving the car, they do not own it.
In this way, pawning a car and still driving it is much more costly than pawning a car at an asset-based loan provider.
Am I able to pawn my car?
If an individual has a fully paid-up car in their name, they can make use of its value without having to sell it, by using it to secure an asset-based, short-term loan.
To pawn one’s car, the individual must own the vehicle and the vehicle must be fully paid off. The vehicle license must be current and the car must pass a roadworthy test. Furthermore, the owner of the car must apply for the loan and sign the stipulated agreements.
There is no excessive paperwork or invasive questioning or lengthy approval process. The car serves as security for the loan, which means that factors such as one’s credit rating and current income are not relevant.
Is it possible to pawn your car title at a pawn shop?
A car title loan is a type of secured loan that makes use of a fully paid-up vehicle as surety. To proceed with a car title loan, one will need the original car registration papers, in the name of the person applying for a loan, as well as an ID, and a recent utility bill or bank statement to serve as proof of address.
Important to note is that there are a few untrustable operators specializing in pawn and drive schemes. On the other hand, there are accredited car loan providers with reliable track records, which can be found by doing oné’sr homework online, to ensure that one is dealing with a trusted asset-based lender.
Where am I able to pawn my car and still drive it?
For those looking to pawn a car while still driving it, one can visit the following options online to find the cash solution needed:
- Pawn My Car
- Cash Quick Auto
- Pawn Cars4cash
- The Loan Company Car Pawn
- Drive Away SA
The requirements to pawn your car?
The requirements to pawn one’s car can be outlined as the following:
- After selecting the car pawn option of choice, one needs to submit the necessary information online or via phone.
- Have the following documentation at hand: Copy of one’s ID and proof of address & Original registration certificate of the car.
- The next step will be to bring the documents and the car for a final evaluation. Following this, one will have the opportunity to read, complete, and sign the loan agreement.
- The car is then stored in a safe and fully insured facility and a transfer is made to the respective individual.
- When it comes to getting one’s car back, they will need to pay the monthly charge as per the agreement, as well as pay the capital back.
- Once the money reflects in the car pawn companies account, one can collect their car, as well as related documents.
What are the benefits of car pawn loans?
Unlike a traditional bank loan, those who choose to pawn their cars won’t have to wait for the funds. There are no credit checks or inquiries into one’s personal financial affairs because the value of the vehicle serves as surety for the loan.
The value of the loan that one is offered will depend on the value of the car, which means factors such as the model, age, condition, service history, and trade value will be taken into account.
Once individuals have repaid the loan and monthly interest that is charged in line with National Credit Act guidelines, the car will be returned to the owner, in the same condition that they left it.
Car pawn companies will not provide information to credit bureaus, banks, or any other parties, which makes the process strictly confidential.
The advantage of pawning one’s car is that it is quick and there is no possible course of action for those that do not pay back the loan. In the event that the individual is unable to pay the loan and interest back, their vehicle is sold to recover the debt.
Choosing the right fit to pawn your car
When deciding to go down the car pawn avenue, it is encouraged to find a well-established loan provider that is trustworthy, which can be accomplished with thorough research of the options available.
Important to note is that pawning one’s car is a solution for a short-term cash flow problem, but should not be sought out by those that do not think that they will be able to make the repayments in terms of the loan agreement.