Should I Pawn My Car for a Cash Advance?

Should I pawn my car or should I torture myself by going through the lengthy and frustrating process of applying for loans with all the different banks and lending institutions? That is the question of many people who find themselves faced with a money crises or shortfall in the amount of cash that they need for something important. If you are wondering if “pawn my car” loans are a sound and viable option, wonder no more.

Pawning assets to get loans is allowed under the National Credit Act (NCA), which means that it is both legal and regulated by law. It is also hassle-free and certainly makes for a good finance option, especially for those who expect to encounter hiccups when applying for a regular loan at the bank or a traditional lending institution.

Pawning your car for a cash advance is the easiest and quickest way to get your hands on the cash you need without falling foul of red tape along the way. Unfortunately, regular financial institutions can take a long time to decide if you are high-risk or not and they certainly do discriminate when it comes to deciding who is deemed worthy of a loan or not. Of course, it is because the law for traditional loans requires them to, but that does not make it any less frustrating for applicants.

For those who are blacklisted, have a poor credit rating, are under debt review, do not have a full-time job, or are simply unable to pass the affordability checks that most loan houses require, pawn-my-car loans are the ultimate solution. In fact, this type of loan is perfect even for those who would qualify for a regular bank or financial institution loan, simply because of its ease and simplicity.

Car pawn loans differ from regular loans. When you pawn your car for cash, you will need to hand the vehicle over to the loan company. In our case, it would be one of our consultants at the XCELSIOR secure storage facility. The vehicle is kept safe for the duration of your loan contract. Once the loan is paid back, the vehicle is returned to you. The vehicle will only be sold if you default on your contract without making a reasonable effort to rectify the situation and if you are unable to repay the loan amount.

While we keep the process quick and easy, we always advise our customers to be realistic in their loan objectives. It is never wise to become over-indebted, so make sure that you can afford the monthly repayments and never borrow more than is required. Confirm interest rates, terms, conditions, and repayment schedules before you go ahead with any loan contracts.

We base our loan amounts on the value of the vehicle being pawned. Our assessors will determine the value of the vehicle and we will be able to loan up to 50% of that value to you. The minimum loan amount is R5000 and the maximum loan amount is R500 000.