If you’re thinking of pawning your car, you have three options. You can pawn it and take the risk of not getting it back. You can pawn and store it, making sure you get it back, but you have no car. Or, you can pawn and drive it. That way, you can get the money you need and still have your car to get around.
Either way, you will need to know how much you can get by pawning your car. It all depends on a couple of factors. But you can typically borrow 30% to 50% of its assessed market value. Some lenders may offer up to 70% or 90%, depending on the specific loan terms and the vehicle’s condition.
Why Your Car’s Value Matters When Pawning Your Car
The amount of money you can get from your car depends greatly on the value of your car. That being said, there are ways to try to increase the value of your car. Valet it, fix minor dents and scratches, and make sure its services are up to date. This might not necessarily ‘increase the value of your car’, but it could get you an extra couple of bucks.
What Lenders Look at Before Making an Offer
The first thing lenders will look at is the condition your car is in. They will then look at the make and model of your car. How old the car is and, of course, whether it belongs to you or the bank. One of the most important things a dealer or lender will look at is your car’s resale value. This will be a big deciding factor on how much you can expect to receive.
Is the Highest Offer Always the Best Offer?
No, the highest offer is not always the best offer. The highest offer could have hidden fees, high premiums, or clauses that might make it difficult to get your car back. That is why you need to read the fine print carefully. Make sure you know what you are getting yourself into before you sign.
There are dealerships that are up front and honest about your deal, like Pawn and Drive. They will tailor your monthly premium specifically to your needs, and you will know exactly what you’ll be paying for and for how long.
What Are Some of The Risks and Costs Involved?
There are certain risks if you’re not careful. The biggest risk is not making sure your dealer is reputable. And if you’re storing your car, there might be costs involved. Be wary of illegal storage or insurance fees; under the National Credit Act, lenders must hold your vehicle at their own risk.
Can I Still Drive My Car After Getting the Cash?
Yes, if you choose the pawn and drive option. Which, if you think about it, is the best option. This way, you will get the money you need, while still having your car to get around. Just make sure you choose a reputable dealer so you get the best deal.
Pawn and Drive makes it very simple. No paperwork, credit checks, or lengthy approval processes are required.
How to Pawn and Drive Your Car in Cape Town
Step 1
Submit a Loan Application: You can contact Pawn and Drive by visiting their Cape Town location, filling out a form on site, calling, or using their WhatsApp helpline.
Step 2
Provide the Needed Documents: The essential documents are vehicle registration, proof of ownership, and a valid ID. The original vehicle registration will serve as loan security.
Step 3
Vehicle Valuation: To assess the loan value, your car needs an evaluation to determine the maximum loan amount based on its condition and market trends.
Step 4
Set up a Monthly Repayment: Loan amounts and monthly repayments are tailored to each client based on the vehicle’s value and loan risk, with flexible terms ranging from 48 to 60 months.
Step 5
Sign the Loan Agreement: You’ll sign a loan agreement detailing the terms, including repayment and interest rates, which confirms your commitment to repay while allowing you to keep your vehicle.
Step 6
Receive Funds: Congratulations! You can now receive your cash. Depending on your agreement, you can either pawn and still drive or store it with Pawn and Drive during repayment.
Get Cash Without Selling Your Car
Life happens, and we might need a large sum of cash with not a lot of time to get it. It happens to the best of us. Luckily, you have the option of getting the money without having to sell your car. You have the option of pawning your car. Whatever the reason for needing the cash, you can rest assured that you won’t lose your car if you choose to pawn and drive your car or to pawn and store it.So contact a reputable dealer, like Pawn and Drive, and get the cash you need in no time.