What should I know if I pawn my car?

In times of urgency when savings are insufficient, some people pawn their jewelry, electronics, and cars. If you consider the Car Pawn Loan Atlanta, review aspects such as the amount borrowed, the fees charged, the paperwork required and what you might have to keep safe.

A loan is granted with collateral (not exceeding 80 percent of the appraised value) by putting the car as collateral and leaving it in the custody of the pawnshop itself until all payments have been made. A loan (not exceeding 60 percent of the appraised value) is granted by putting the car up as collateral, but allowing the customer to continue using it. The borrower must pay a rental fee and have comprehensive car insurance, besides paying the debt incurred and the corresponding interest.

What is your choice?

If this is your case, consider these aspects before leaving your vehicle in pledge. The percentage of the loan fluctuates around 70 percent and if the vehicle is not left in custody, the percentage drops to 50 or 60 percent of the value. The decision to pledge your car should be made for important reasons, whether your savings are insufficient and an emergency arises but you do not have insurance.

The requirements that collateral companies will ask for are the original invoice with consecutive endorsements and chronologically consistent autograph signatures, the current circulation card, payments of vehicle ownership rights and their official proof of payment, valid plates, and that the car is not above 10 years older, etc. Although this depends on each of the companies since in some the seniority is less. 

An easy alternative at high price

The collateralized loan contract can be with or without transfer of possession. In the first case, the vehicle remains in custody and as a deposit in the company; in the second, the client retains the use and enjoyment of the car even though it is used as collateral for the loan. In this case, the loan percentage decreases and the interest rate increase, depending on the company. The basic requirements to pawn your car are that it is not more than 10 years older and that it has both license plates. It is much easier, faster and cheaper to leave the unit as a guarantee, but if you do not want to leave it, a satellite device is usually installed in the vehicle and a slightly more complex contract is made, and with more clauses.

Being a much more specialized service, the review of documents is very thorough. Instead of verifying the six security points that we have in a normal effort, here we have 19. Not only is the invoice for the car received, but also the pledge company will have to confirm with the company that it is issued and the cars are taken to the Federal Police to see if they have no history of theft. 

In the end

Getting a car pawn loan is much easier. Go with your vehicle and documents to carry out the valuation of your car. Deliver your documents and they will install your GPS. Sign your contract, and receive your money.