15 Jun 5 Reasons to Pawn your Car
Pawning your car may seem like quite a daunting endeavour with unscrupulous pawn brokers tarnishing the industry name. There are however very professional, reliable and honest pawn brokers around that will not only help you to pawn your car, but also help you to get it back. So, bearing this in mind, let’s look at a few reasons to pawn your car:
Reasons to Pawn your Car
Instant Cash: By pawning your car with a reputable pawn broker, you will be able to access cash instantly and use this money towards the more urgent matter. It is important to note at his stage that the pawn broker will give you a value for your car that they believe is suitable and may not be able to give you the full value of your car.
Being blacklisted isn’t a problem: Most pawnbrokers are able to loan money to you based on using your car, vehicle or asset as collateral. Therefore unlike other financial institutions there is no need to check your credit record. If you’re unable to repay your loan plus interest, they will simply keep your asset and sell it for money.
No lengthy paperwork: In essence it is quite an easy task to pawn your car. (Read our article How to Pawn your Car for more on this) All you will need to provide in most cases is your ID and proof of residency and the car or asset papers, proving that the car in fact belongs to you. (Some pawn brokers even provide loans against financed vehicles.)
Your credit record isn’t affected: When you pawn your car with a reputable pawn broker, the loan is not recorded with the credit bureau. So if you need to extend the loan or are unable to pay it back and the pawn broker ends up selling your car, you do not score negative points on your credit history. Indirectly however you may not be able to pay your other bills if you are trying to repay a loan to a pawn broker so it is always important to make sure your monthly bills are paid first.
The pawnbroker carries the risk: The pawn broker that you approach will value the car you want to pawn and give you the accompanying cash for it. If they value it incorrectly they can end up losing money as the value of the car (once they sell it plus interest) is less than the amount they lent you.
Remember however that saving money instead of taking out loans is always a better option. Try to avoid living paycheck to paycheck and save a little money each month (even if this means cutting back on your lifestyle) so that when you need money for an emergency it is there and you can avoid using a pawn broker altogether.
Good Fellows Pawn Brokers are one of South Africa’s leading cash loan companies. With a ridiculously low 0.7% interest rate per day and many years’ experience in helping you get your asset back, Good Fellows Pawn Brokers offers instant cash loans on all assets such as cars, bikes, jewelry, business assets and more. Speak to a friendly consultant at Good Fellows Pawn Brokers today to pawn your car for cash.