A car deposit promises short-term and unbureaucratic money. The only security is the car. But is it a better alternative to a bank loan or a car sale?

Car Mortgage Lending: How Does Car Lending Work?

In the pawnshop it comes to lend a valuable object quickly and without red tape to cash to come. A car mortgage loan is, therefore, a loan in which the car is deposited. If you cannot repay the money, including interest within the agreed obligation, the vehicle becomes the pawnbroker’s property. Depending on the provider, the car has to be left on-site or can still be used. If both options are offered, you get less money if you continue to use the car. learn more (เรียนรู้เพิ่ม which is the term in Thai) here, Requirements for car loaning:

  • Minimum age 18 years and residence
  • The car must not exceed a certain age (usually 10 years)
  • The car must be owned and registered with the pledgee
  • The car must be in running order
  • The car must be registered 
  • Reserve key must be handed over to the pawnshop
  • Documents for the car: Valid “badge,” type certificate, registration certificate
  • Documents from the vehicle owner: registration form and photo ID
  • Car pawn shops specialize in mortgage lending. 

Quick Money In The Car Pawn Shop?

The resulting money supply is dependent on the value of the car. However, you only get part of the value as a loan. The limit for car lenders in Vienna is between 30 and 70% of the sales value. 

Car Loan Or Sale?

You get more money when you sell the car. With pawnshops, you only get a certain proportion of the sales value. However, when you sell a car, you give away your car completely. After the loan has been repaid, you can get it back at the pawnshop. So, it depends on how much you depend on your vehicle.

When lending a car, there are significantly more costs. As a rule, in addition to the loan interest, there is an issue fee for the pawn ticket and a manipulation fee if the deposit is re-used. In addition, the effective interest rate over the year can be very high. When it comes to speed, the pawnshop has the edge. It can take some time to find a suitable buyer for your car. As a rule, you can get the money much faster if you borrow money from the vehicle.

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