Pawn of cars with the vehicle as guarantee
If we urgently need money and we have a vehicle in our name, we can pawn our car without having to hand it over. In addition, we will be able to obtain amounts greater than 1,000 USD even when we are in Financial Credit Institution, regardless of whether we are pensioners, unemployed or self-employed.
As an alternative, if we are at Financial Credit Institution or do not have a payroll, we can apply for a loan with Financial Credit Institution or a loan without payroll. In the following list we can find the companies with which to process the commitment of our vehicle to get the financing we need. This type of financing has our vehicle as a guarantee of payment. So we must not forget that we run the risk of losing it if we do not pay on time.
Likewise, the repayment of the loan carries interest that is fixed in the loan contract. We must bear in mind that although we can make an early return we will have to face the payment of interest. Car loans as collateral allow us to continue using our vehicle in exchange for a tight rental fee set in the contract. In the case of needing a greater amount of money, we have the option to transfer the vehicle and renounce its use.
Credit for your car, how much money can we get?
If we are the owner of a vehicle of less than 10 years old, and we do not obtain the financing we are looking for by any means, we have the option of resorting to loans with collateral and using our car as a guarantee of payment.
These types of loans, more permissive than other funding, with more damaged credit histories, are available to any applicant who has a vehicle regardless of whether they are registered in files for unpaid arrears.
If we have a car that supports our loan application, we will be able to get the money we need, regardless of whether we have debts, or our data is registered in files of defaulters such as Financial Credit Institution.
Regarding the amount of money that we can get with this type of loan, it is usual to receive up to 80% of the appraised value of the vehicle used. Obtaining amounts between 5,000 and 20,000 USD, depending on the value of the vehicle to which we refer.
How does the car pawn work?
If we have a vehicle that is less than 10 years old, we will be able to request a credit using our car as a guarantee.
“We must exercise caution and be convinced that we will be able to comply without problems with the payment of the return fees stipulated in our contract, since if we do not do so we run the risk of losing the pawned car.”
Hence the importance of knowing the financing conditions they offer us before signing the contract. In the case of obtaining financing using our vehicle as collateral, we must ensure that we are not signing the purchase-sale of the vehicle, and indeed the conditions refer to contracting a loan with the car as a guarantee.
Below we collect the main differences between the entities that buy and sell vehicles, and the companies that offer car loans as collateral, since it is very easy to confuse their services and may lose ownership of our vehicle without being aware of it, when in Actually what we were looking for was to ask for a credit using the car as a guarantee.
For this reason, we advise caution and even ask for advice if we have doubts about the financing conditions that we assume.
Car loan application as collateral
Once the company with which we want to process the pawn request of our vehicle is selected, we can access its website and start the application process without leaving home.
To start we will have to complete the application form at our disposal, and indicate the identification data of our car such as its make, model, year of registration or mileage.
Then we will have to provide our personal and bank details, required for the viability analysis of the operation by the pawn company.
As soon as our request is analyzed we will receive a call in which we will receive information about the financing conditions of the loan. In the event that we are satisfied, we can proceed to the signing of the contract, after which we will be able to receive the transfer of the money awarded.
Once the contract is signed, we will receive the loan money for our car immediately in our account.
How soon can we have the money?
When requesting a loan of this type, we must bear in mind that the receipt of the money will not be immediate, since it is a special procedure that involves an appraisal of the vehicle used as a guarantee, in addition to the relevant solvency study stipulated in these cases.
Once the appraisal of the vehicle has been managed, the companies will decide the total amount of the loan, contacting us within 24 to 48 hours to verify the details of the operation, and send us a copy of the contract with the corresponding financing conditions..
As soon as our signature and compliance with the terms of the contract are verified, we will be in a position to receive the transfer for the amount of money awarded.
The response time of the entities that grant this type of financing will depend in each case on the management and appraisal processes necessary to guarantee the credit.
Will it be possible to continue driving the vehicle?
Before requesting a loan using our car as a guarantee, we will need to know whether or not we will be able to continue using the vehicle in question. In this sense, signing a loan of this type will not mean that we cannot continue driving the car for its duration.
Although if we have no problem stopping using the car, there is also the possibility of transferring our car to the financial institution in exchange for increasing the amount of the loan.
“In any case, it does not hurt that we make sure that the contract that we sign does not imply the sale of the vehicle, since in this case we will have to assume an extra payment for the car rental if we want to continue driving it.”
What requirements and documentation are you going to ask us for?
For them to approve our loan request with our car as a guarantee we will have to be able to meet the following requirements:
- Be the owner of a vehicle of less than 10 years free of charges
- Have our updated and current documentation (DNI, NIE or Passport)
- Having the documentation of our car in order:
- Car datasheet
- Proof of road tax
- ITV in force
- In addition, depending on the entity we go to, they may require us to have to prove a regular source of income by filing payrolls or other documents.
In any case, the requirements and documentation to be submitted will depend in each case on the internal policies of the entities that grant this type of financing.
Can we get a loan for a car over 10 years old?
When economic problems overwhelm us and we need to find urgent solutions to get money online car loan guarantees, they offer us a real solution to obtain the credit we need regardless of whether we have debts or are in the files of defaulters like Financial Credit Institution.
If you doubt whether or not it will be possible to get the credit you need with a vehicle of more than 10 years, do not worry, the offer of loans on the Internet is so wide that it will not be difficult to find a lender specialized in pawning cars with the vehicle as a guarantee willing to lend us money for our car, regardless of its age.
As we saw in the car pawn request procedure, each company will analyze our request based on the appraised value of our vehicle, offering us a tailored personalized response. The age of our car will not be an impediment to find the financing that we seek through guaranteed loans.
If you are looking for a loan but you have a car over 10 years old, surely most of the companies you have contacted have not lent you money. This is so because vintage cars over 10 years old have lost practically all their value. However, we recommend a company that if it makes efforts of vehicles older than 10 years, it is Ibancar.
However, we advise you if your car is over 10 years old but it is a high-end car or in good condition, insist with the different pawn shops. Normally online appraisals or contact forms give you an automatic answer if your car is old or has many kilometers. However, if you call on the phone and the loan money you are asking for is low and it is a good or high-end car, you may be awarded the money.
Is it possible to get a car guarantee loan without changing the owner?
When considering the possibility of pawning our vehicle as the only alternative to find the financing we need, sometimes it happens that we reject the idea of loss of ownership of the vehicle.
Therefore, we must know that some entities that manage personal loans with a car guarantee will allow us to continue using our car, without losing ownership of it. In any case, before choosing which financing alternative is best for us, we must compare all the vehicle pawn offers and make sure we know the conditions that we agree on, since we will find different policies regarding the treatment of car ownership and its possibilities of use.
The main thing is to have no doubts about the conditions that we sign to avoid unexpected surprises that affect the cost of credit.
This option gives you the freedom to guarantee the loan with your car but continue using it without having to leave it in custody. Here the key is that since the car is not in storage, it is normal for the company that buys it to put the car in its name and end up making you a kind of rental. Imagine, if your car has a value of $ 20,000 in the market and you need $ 6,000, what the company does is transfer the ownership of your car in exchange for giving you $ 6,000. You will have to pay a monthly fee to reimburse those $ 6,000 plus interest that is usually around 8% -16%.
Once the borrowed money has been repaid and the interest would be transferred to the car in your name. If you stop paying and do not return the amount, the lending company would keep the good to sell it and be able to recover the money borrowed plus a plus (since the value of the car is always higher than the money they lend you).
The risk that the company runs is much higher since the vehicle may be accident, or the client may disappear.
In which cases is the pawn of vehicles the best financing alternative?
Trying to get a loan of this type is interesting when our economic situation prevents us from enjoying other types of financing. This is the case of the most damaged credit histories that appear in delinquent files like Financial Credit Institution and do not have fixed income.
When we have no income and our data is registered in delinquency files, the pawn of vehicles is an effective option to get the money we need.