Leveraging the equity in a fully paid-up vehicle is a quick, easy and discreet way to raise short-term finance.
LoanAgainst offers secured loans against cars and other vehicles – trucks, bakkies, motorbikes and panel vans.
No credits checks or proof of income are required, and capital is available on the same day.
How much do we loan against vehicles?
At LoanAgainst, the maximum loan quantum is not set in stone. We evaluate each vehicle, and offer a loan commensurate with the current trade value.
To date, LoanAgainst has processed car pawn loans ranging from R20,000 to R10 million.
What determines how much you can borrow against a car?
The loan amount you can secure depends on the car’s estimated resale value, which isn’t the same as its book value.
Below are the key points we consider when determining a fair resale value and, in turn, arriving at loan quantum.
Make and model
A luxury marque, or vintage, classic or collectible car is a high-value asset that typically appreciates in value. The available loan against this type of car is significantly higher than that of a mid-size or compact family car.
Age
An older, high-mileage vehicle has a lower resale value than a newer car with low odometer reading. The loan we’re prepared to offer you reflects that fact.
Condition
The physical condition of your car – and whether it has been involved in an accident – has a direct impact on its resale value and the available loan.
Local economy
Tough economic conditions usually reduce demand for big-ticket items, like cars, and contribute to lower sales volumes. Resale values drop accordingly, along with secured loan amounts from direct lenders like LoanAgainst.
A warning against pawn-and-still-drive-it schemes
Pawn-and-still-drive-it schemes have recently become a hot topic for all the wrong reasons. According to the National Credit Regulator (NCR), these schemes are nothing more than “scams”.
As reported in the Daily Maverick, pawn-and-still-drive-it schemes are not pawn transactions at all. Consequently, they’re not regulated by the National Credit Act. This leaves consumers open to abuse.
Rather than offering credit against a vehicle, pawn-and-still-drive-it operators effectively purchase the car. They then charge the former owner a monthly rental fee to continue driving the car.
At the end of an agreed period, the owner has to buy back the vehicle at the full sales price. If any of the monthly payments are late, or the owner can’t afford to buy back the car, it is seized and sold. There is no legal recourse.
Next step: find out how much you can borrow against your car
At LoanAgainst, we do things differently. We don’t take ownership of your vehicle, but we do keep it safely stored until the loan and accrued interest are paid back.
To find out how much you can borrow against your car, simply complete an online application and we’ll get back to you. Don’t forget to add as much detail about the car in the message field – make, model, mileage and condition.
LoanAgainst is an accredited finance provider with branches in Cape Town, Port Elizabeth, Durban and Johannesburg. Apply online now or contact us on 079 726 4690 to find out how much you can borrow when pawning a car in South Africa.
