Trying to find the best option for getting a loan against a car in Cape Town?
The market for pawning cars has exploded in and around the Mother City – and unfortunately, not all the alternatives are as good (or as safe) as they might sound. Here we outline some alternatives to avoid, along with some advantages of a loan from LoanAgainst.
Loan alternatives it’s typically best to avoid
Pawn your car and drive it in Cape Town
Over recent years, “pawn and drive” schemes have emerged as some of the most notorious.
A number of these schemes have defrauded customers in South Africa – and some have been declared illegal and closed by the authorities.
For example, a common practice is taking ownership of a customer’s vehicle when entering into a loan agreement. The customer is then forced to “rent” the car back in order to drive it. This can result in a struggle to regain ownership once the loan has been repaid.
Other schemes – such as Sun Finance – were found legally liable for overcharging their customers, in the form of excessively high interest, so-called administration charges and collection costs.
Online only loan offers
We advise against entering into financial transactions with online lenders that don’t appear to have physical branches.
Ideally, the lender’s branches should also be in safe, reputable areas.
It goes without saying that it’s also best to avoid lenders with unprofessional-looking websites, or who advertise purely through classified ads.
The best option for loans against cars in Cape Town
We offer a few reasons to consider LoanAgainst as your loan provider.
We have branches across the country
LoanAgainst is a trusted lender. Our parent company is a licensed financial service provider (FSP) and has been operating countrywide for many years.
We have branches in central Cape Town (on Strand Street), Johannesburg, Durban and Gqeberha (Port Elizabeth).
We offer a transparent, low-risk funding model
Our model is very straightforward.
We offer loans to customers who provide their cars as security. The loan amounts we offer are based purely on the vehicles’ market resale values.
We offer funding within 24 hours of receiving your application.
There’s very little paperwork involved, and no need for a long approval process.
We don’t charge hidden fees or penalties, and our interest rates are competitive.
Unlike many Cape Town-based “pawn and drive” schemes, we also do not compromise your ownership of your vehicle when entering into a loan agreement.
Your car is stored in a secure, access-controlled facility for the loan duration – you will never be forced to rent it back from us to drive it. While it’s in our care, it stays in your name. Once the loan concludes, the car is returned to you in the condition you left it.
We protect our clients’ information (and safety)
Unlike banks and other traditional lenders, LoanAgainst does not share information with credit bureaus. This means that getting a loan from us will have absolutely no impact on your credit rating.
We also don’t share your information with any other third party.
We meet with clients at safe premises. To protect our clients’ safety, we also transfer funds only via EFT (rather than in cash).
For more information about the best option for getting a loan against a car in Cape Town, contact us or simply complete and submit our online application form.
