The United States has opened pawnshops have appeared long time ago. The first American car pawnshops date back to the 1950s. The Americans liked the new service – now money for urgent needs could be obtained quickly and easily, without endless bank score checks and guarantors. Soon the innovation reached Europe, where it also gained popularity. This method of lending allows you to get cash quickly, while having your own car within reach, which is also an urgent need during the period of self-isolation.
At the same time, getting an auto loan is quick and easy. You do not need to travel around the city collecting documents to do this. To receive money, you just need to fill out an online application and provide an ID and title. Guarantors are not required.
The cost of such an auto loan is higher than a regular consumer loan issued by a bank. However, this option is suitable for those who need cash within the next few days, while the person expects to pay off the debt and use his car later.
There are two main ways of borrowing a title or auto loan:
- a loan, when the car is pledged and you continue to use it;
- the car remains in the parking lot until the debt is paid off.
In the second case, you can get a larger amount of debt secured by a car and more favorable conditions for obtaining a loan. But when you receive a loan under the title, but when the car remains with you, you can also use it freely.
What car can be used as collateral for a car pawnshop loan?
Almost any car can be used as a secure, the main thing is that it should be in a good state and launched no later than 2002. The brand is practically insignificant. Moreover, many pawnshops in the USA accept not only cars as collateral, but also almost everything that drives or floats – motorcycles, trucks, special equipment, boats, yachts, etc.
What terms does a car pawnshop offer?
Clients can be offeredwith a loan that is 90% of the car value. This is the maximum. In order to get that kind of money, you need to provide a new car in a good condition. Usually, the amount is 60-85% of the assessed value.
You can take out a loan for any period from 1 day to several years. Since it is difficult to do without a car for a long time, many car pawnshops offer several programs – on the security of a car and on the security of a title.