Can I pawn my car for a loan?
- "Is it possible to pawn a car for a loan, while continuing to use a vehicle?" - this question is often asked not only by car owners who urgently need finances, but also by people who simply need a car as a source of income for a living. Financial companies that issue loans respond like this: yes, it is possible.It is enough to take advantage of a simple, understandable, profitable loan under the PTC in a pawnshop.What is it? The amount that you receive against the security of your vehicle's passport. The easiest way to do this is at a pawnshop. In fact, a person leaves documents for a car, receives money, and the owner is allowed to use the "iron horse" until the final payment of the existing debt.Banking organizations also offer a similar service, a loan for a PTC, but the "rules of the game" are somewhat different there. In addition to the mass of documents certifying not only the identity of a car enthusiast, the right to own a car, sources of income, credit history, and guarantors that financiers will have to provide, there is also a very inconvenient lending rule. The amount is given strictly for the purchase of another car.In a pawnshop, you save time and nerves, you can use a car for the entire debt period, and most importantly, you will not be asked why you need financial resources.The loan system is simple:1. You are writing a loan application. You will not have to tell the employees of the credit company about the purpose of obtaining financial resources, nor about what permanent sources of income are available.2. Provide documents stating that you are the owner. It is important that the car is not stolen or under loan payments. The list of documents is also minimal: driver's license, PTS, STS, your passport.3. The pawnshop employee evaluates the market value of the vehicle. It offers you about 80 percent of its price. The money is secured. The car remains with the owner. The newer the car, the more special "bonus devices" it has, the higher the price rate.4. You negotiate the payment terms, usually no more than 12 months, as well as a debt repayment system. Each pawnshop always has a flexible cash restructuring system for its clients.5. Receive the money immediately after signing the contract, within 30 minutes!Why don't they require you to provide a large list of documents?He is not needed. It is important for creditors to know that the customer is already 18 years old and lives in the country, that is, in the immediate vicinity of the pawnshop. This is exactly what a passport is required for.Next, you need to make sure that he drives a car. A driver's license will come in handy. They will identify you and provide proof of driving experience. The PTC indicates that the car belongs to a person, he has the right to leave it as collateral. Well, additional information about the technical characteristics of the car, its license plate number, and confirmation that the vehicle was registered with you will help you make contact with a financial institution faster.So, if you need money urgently, and it is important for you to keep your "iron horse", as well as continue to use it, then the best option to quickly get the amount is a pawnshop, a secured loan, or an auto insurance company.How to get money secured by a car From financial problems, both wealthy and not so wealthy people cannot be insured. Everyone decides this in their own way. Some turn to friends or relatives, others turn to the bank for consumer loans, some see the possibility of a quick exit in microfinance organizations. Before choosing one option or another, it is necessary to analyze all the pros and cons of each option.What do banks offer?Taking a large sum from an individual is quite problematic and difficult in almost all cases. Banks request a huge number of documents to obtain consumer loans, it takes a lot of time to find guarantors, and interest rates are often high and unprofitable. A decision on granting a loan can be expected within up to seven days. If you offer a car to the bank as collateral, the percentage may be significantly lower, but the list of necessary documents will be supplemented with a certificate of official employment and a technical passport for the vehicle. You will also need a compulsory car insurance policy and, in some cases, other additional documents. In this case, the documents are also considered for several days. The loan agreement provides for penalties for late payment. The owner reserves the right to use his vehicle, but if it is impossible to make payments, the bank becomes the owner. The bank has the right to transfer the burden of paying court costs when transferring the car to the ownership of the bank to the borrower.Loans from MFIs. Is it easy or profitable?You can also get money secured by a car from a microfinance organization. The procedure is much faster, from one to twelve hours, and with a very small list of documents provided. The interest rates under the loan agreement are significantly higher than the bank rates. The car remains in the owner's possession. But the penalties for non-payment or late payment are very high. Most often, money can only be borrowed for a year, which means that the debt must be repaid in such a short period of time.Pawnshop. What's it?Another option to quickly get money at an interest rate secured by a car is a pawnshop, the most common way to take out a loan on the loan market. It is enough for the borrower to provide a passport and documents certifying ownership of the car. The simplest, the fastest, but there are risks. In this case, the car is placed in the pawnshop parking lot for the entire term of the loan agreement, which means that the owner will not be able to use the car while it is secured, that is, until the loan is fully repaid. The lender still has an additional set of car keys. Secondly, the payment for car valuation, insurance and parking costs can also be shifted to the borrower. The advantages of this type of loan are that interest rates are significantly lower than bank rates, and money can be received almost immediately in cash at the pawnshop's cash desk. Individuals are offered loans secured by cars at no more than 17%, while the percentage of consumer loans in the bank can be even 30%. The benefits are obvious to both sides. The borrower receives the required amount at a small percentage, and the lender has the right to confiscate the car in case of non-payment of the debt. In addition to the contract, the Borrower signs an Act with the pawnshop on the transfer of the car as collateral, indicating its technical condition. In case of damage to the property or its improper storage, the owner has the right to compensation for damage or compensation from the credit institution.Other loan options secured by a car Today, there are companies offering bonded loan terms secured by a car. The scheme is simple: the car is bought from the owner for the amount he needs, and then the vehicle is leased to him. All payments are made under the lease agreement, that is, for using the car. The borrower uses the car, and the ownership belongs to the company on the basis of the purchase and sale agreement. The stakes are extremely high - up to 96%. In case of financial insolvency of the borrower and non-payment of the loan, the lender, using his key, confiscates the car on the basis of ownership even without notifying the borrower. All responsibility for the conditions and risks of concluding contracts with such companies lies solely with car owners who want to receive money secured by a car.Useful informationit is also important that not every car will be taken as collateral by a credit institution. The requirements are almost the same everywhere. The vehicle can be accepted as collateral in good, trouble-free condition, must be cleared and registered in accordance with the rules. The release date of the car also matters.The most favorable loan repayment terms are offered by large pawnshops. The borrower is given the opportunity to pay only for the days of actual use of the money and early purchase of the vehicle without penalties.The current market for loans and borrowings offers a wide range of opportunities to quickly get money secured by a car with varying degrees of benefits and risks. Before making a decision, it is ideal to calculate all the steps for the future in order to make the right choice. The main thing is to use the services of trusted and reputable credit institutions. greatspin Greece