Sometimes, under force majeure circumstances, we need money – urgently and in large quantities. It is difficult to get them at the bank, since for a consumer loan for a large amount, you must first collect a lot of documents, and then wait for their verification and the decision of the organization. And it is not known whether this loan will be given or not.
Another way out is microfinance organizations that issue money with a passport or online. However, this option is not always suitable, since MFIs lend small amounts for a short period of time – and at high interest rates.
Where then to go? Car enthusiasts in a difficult financial situation can turn to a car pawnshop, which combines the speed of obtaining an MFI loan and the issuance of large loans for any period. A microloan secured by a car will allow you to receive in some cases up to 90% of the market value of the car. In addition, car pawnshops always meet the needs of the client – whether you want to mortgage your title and get money in cash or prefer to get a loan on a card secured by a car, there is always a solution for you.
What documents are need for a loan at a pawnshop secured by a car?
A loan secured by a car in a pawnshop is processed much faster and easier than in a bank – to obtain such a loan, as a rule, you will need only three documents – a passport, a vehicle registration certificate and a vehicle registration certificate. After assessing your vehicle by pawnshop experts, a decision will be made on the amount that the organization can give you. If the amount suits the borrower, then a contract is drawn up.
A microloan secured by a car is a safe and fast way to get a loan, since all organizations of this type are regulated by government services, and car pawnshops themselves are required to provide you with the necessary documents and a security ticket. This guarantees the purity of the transaction, as well as, in case of unfair operations on the part of the pawnshop, the opportunity to start legal proceedings. Car pawnshops offer their customers a variety of services, and it’s up to you to choose what is more convenient – a loan on a card secured by a car or title, or a cash loan.
A title secured loan is somewhat more popular than a car loan, as it allows the owner of the car to use it during the time that he pays the debt to the pawnshop. However, at the same time, a smaller amount is issued against the security of the title than on the security of the car itself, and the loan rates are several percent higher. This was done in order to protect the pawnshop from unscrupulous borrowers. This method is especially suitable for those who earn with their vehicle.
A car loan at a car pawnshop means that your car will remain in the parking lot of the organization until the debt is paid in full. Covered guarded parking will protect the borrower’s vehicle from theft or accident. The law on pawnshops prohibits the exploitation of property pledged in a pawnshop, which means you can not worry about a car left unattended. In addition, many organizations do not forbid car owners to come to the parking lot and make sure they are safe.
How to find a reliable car pawnshop?
A reliable pawnshop will help you feel safe when you transfer your car to someone else. For example, on the https://vaytienmat24.com/pawnshop/ you can choose the most suitable pawnshop for you. Therefore, the criteria for evaluating a reliable pawnshop should be based on the following criteria in order to be sure of yourself before making a decision on collateral:
1. Low interest rate
The main concern of a person who pawn car is always related to the interest rate. Because the interest rate determines your ability to pay your principal and interest on time, and to avoid high interest rates that make you unable to pay on time.
2. Valuation of assets at market value
The second thing you need to look at is whether the price the pawnbroker gives your car is the fair market value, as it refers to the maximum amount you can borrow.
Pawn shop owners will have many ways to determine a specific car price, but experienced pawn shops will often value your car at around 80% to 90% of market value.
3. Clear and transparent contract
The third thing to pay attention to is the content of the contract, carefully read the terms of the parties’ liability, valuation, credit, interest rate, repayment period, etc. in order to avoid future risks.
Reputable pawnshops will always advise you on the specific content of the contract so that you understand your obligations and rights based on the contract, and they always have a contract template to help you complete the application process.
4. Spacious indoor warehouse
What reputable pawnshops usually have is that they always have ample parking space to store and store their assets in the safest and most secure way. Therefore, if you find a reliable pawnshop with a good reputation, you will feel more confident about your property when it is transferred to the owner for management.
5. Commitment to compensation
Respectable pawnshops always show a clear liability obligation in the contract when an incident occurs with the transferred car property, as a rule, the contract always indicates compensation for all losses up to 100% if there is material damage.
Pawning valuable assets such as a car to borrow some money to support urgent financial needs is not uncommon for businesses or individuals today, but finding a reliable pawnshop is essential to secure the process of owning a car. I hope this article will help you make the right choice!
Author: Chử Trúc Lâm from https://vaytienmat24.com/