Quick, easy, and affordable Pawn car loans
Pawn car loans offer consumers an easy-to-apply-for loan that is guaranteed by an asset and as a result, comes with a few added benefits. These benefits include easier loan approval and approval on higher loan amounts.
Personal loans, short-term loans, home loans, and payday loans are all loan types that we are familiar with. Available everywhere and most commonly applied for, these loan types are a viable financial solution if you need to borrow money
But is it your only financing option? Most definitely not. It might not even be your best possible financing option. If you are blacklisted or have bad credit, applying for traditional loan types might not be as straightforward as you had hoped for.
If you are looking for an alternative financing option, consider a pawn car loan. Why? It’s easy to apply for and you can secure a higher loan amount as the loan is subject to an asset. In this case, your vehicle.
Are you considering applying for a loan against your car? Let’s answer some of your most pressing questions.
What you need to know about Pawn car loans
Your car acts as collateral for the loan amount. As a result, you will need to be in full ownership of the vehicle before applying for a pawn car loan. The upside to this loan type is that you get loan approval in no time and you can secure a larger loan amount because you have collateral attached to the loan. The lender is guaranteed to recover the loan amount, which gives you negotiation power when applying for a car pawn loan in South Africa.
Can I take a loan against my car and still drive it?
It depends on the requirements of the car pawn lender. There are lenders available that only require the official ownership documents of the vehicle as well as an on-site estimation of your car. Other lenders require the car to be stored in a safe and secure on-site facility for the duration of the loan repayment.
You should verify the details of the loan arrangement with the lender before agreeing to the loan agreement.
How to Pawn or sell your car to secure a loan
Pawning your car is a simple way to secure a loan. However, you need to be in full ownership of the vehicle before you can secure a loan against your car. Several reputable lenders permit you to pawn and drive your car in Johannesburg.
Generally, the requirements are standard with most lenders who grant loans against vehicles but the full terms and conditions of your loan agreement are at the discretion of the particular lender.
What are the Car pawn loan requirements?
Pawning or selling your vehicle to obtain a loan has a few additional requirements. It is possibly the easiest way to secure a loan as the loan provider is guaranteed repayment of the loan. However, to qualify for a car pawn loan you will need to meet the following loan requirements.
You will need to:
- Be a South African citizen with a valid ID
- Produce the latest proof of address
- Be in full ownership of the car (or other assets)
- Give details on the car including the make, model, and current mileage
- Give the official papers of the vehicle to the loan provider
- Producing the full-service history of the vehicle may allow you access to larger loan amounts.
What to look for in a lender that offers loans against assets
Lenders offer loans against vehicles, boats, jewellery, and other luxury items, most of which are of high value. Are you dealing with a licensed and reputable lender with a solid background and happy customers? Here are a few signs that you have found a car pawn company worth considering.
- Well-established pawn car loan lender - A well-established loan provider that is an experienced car pawn lender, with a proven track record, should be your only option if you want to pawn your car for a loan.
- Find an NCR-compliant lender - All lenders should be registered with the National Credit Regulator (NCR). The NCR protects consumers who apply for credit. A lender that is not registered with the NCR is fraudulent and not permitted to act as a loan provider.
- Pawn different vehicle types - Perhaps you have a different vehicle type that you would prefer to use as collateral for the loan. Many loan providers accept different vehicle types as collateral. Verify with your loan provider whether they do too.
- Competitive interest rates - Car pawn loans do indeed carry higher interest rates. However, finding a car pawn lender that offers a competitive interest rate is easy when choosing from our panel of expert lenders.
- Early loan repayment - You might want to settle your loan earlier than the agreed loan repayment term. Are you permitted to do so? Are there early loan repayment penalties? These are important questions to ask your pawn car, loan lender.
- Hidden fees - You should be aware of all loan costs you will be repaid. Insist on a transparent and detailed breakdown of all loan costs before signing your loan agreement.
Can I apply to Pawn my vehicle?
Our panel of trusted lenders offers pawn your car loans that are affordable, transparent, and easily approved. With an easy online loan application you can secure a loan against your car by simply following these steps:
Step 1: Complete an online loan application
Browse through our selection of car pawn loans and complete the loan application. Submit the supporting documents and wait for a consultant to contact you directly.
Step 2: Vehicle evaluation
Before your loan is approved, you will need to have your vehicle evaluated. The process of vehicle evaluation will be explained to you by the company representative.
Step 3: Determining the loan agreement
After your car has been evaluated, the loan agreement will be drawn up and include information such as the loan amount, interest rate, additional costs, and loan repayment terms. The paperwork will be finalised as soon as the loan agreement has been agreed to.
Step 4: Get your Car pawn loan transferred
Once the lender has verified ownership of the vehicle, you will receive the loan amount, which will be transferred to your nominated bank account.