Car Pawn Loans or title loans as they are sometimes known are a simple way for people to acquire loans based on the value of their vehicles. This typically happens when you need fast access to cash and don’t want to go through the banking process which could take several days to get a loan. An example of such a company can be seen at CarPawnLoan.co.za.
How car pawn loans works is really straightforward. You take your vehicle to the loan company and they will assess the value. This is typically based on the blue book or trade value. For instance, if your car has a trade in value of $10,000 and you owe $6,000 on it, you can get a fast cash loan for $4,000.
To apply for one of these loans, which can often take only a few minutes, will require you to visit the loan company in person and have an official identity document and proof of vehicle ownership. You will be required to complete the loan agreement, stating that you agree to the interest rate payments on the loan and the due date to pay off the loan. Once you agree to the terms you will be issued with the cash.
Loan companies may allow you to continue to drive your vehicle as long as it is insured, but some may require that you leave your vehicle on their premises until the loan has been repaid.
Car Pawn Loans or asset loans are not restricted only to cars of course, you may use jewelry, real estate or boats and planes etc. Do be advised however that should you not repay the loan, you may have to enter into an additional agreement or risk losing your asset to recover the price of the loan.
The loan periods on these type of agreements are typically for thirty days at a time but the companies are flexible and will offer longer term loans.