Is It Possible To Get A Loan Against Your Car?

When you need to borrow money urgently, you’ll perhaps get anxious thinking from where you’re going to arrange money on such short notice. Figures from the Australian Prudential Regulation Authority indicate a credit crisis with new loans declining by around 0.7% each passing year. More of the paperwork required to get hold of a loan these days is one of the reasons for this fall. Due to this, many Australians are thinking about where to get the money they need so badly.

Usually, people take a loan to buy a car, but many don’t know that it can work another way around. Yes, you can avail a short-term cash loan against your car that you own. What’s more, you get a loan against a car easily than other kinds of loan. This can be perfect for the below cases:

• You require the money swiftly.
• You’re in a position wherein you can’t show your income proof.  
• You have a bad credit record.

So if own a car that is fully paid for and don’t owe any outstanding loan money on the car, then you can borrow money against your car. Over 90% of Australians own a car, so this is an option that is open to many people across the country.

Does the car require being free from financial obligation?

It is crucial to remember that your car needs to be free from any other loans or the financial obligation. The whole intention is that you can use the equity that’s in your car and borrow against it. Things are so much easy when you borrow money against your car. That’s because it just requires being free of any existing loans so that you can use it as collateral.

Is there a risk associated with hocking a car for a short-term cash loan?

Well, you should know the risk that’s associated with hocking (pawning) a car for a quick short-term cash loan. When you take out a cash loan by pawning your car – you place your car as a security deposit or collateral – this means that if for any reason you’re unable to repay the loan then you stand the risk of losing your car. This same rule applies for any other type of secured loan – meaning when you borrow cash loan against an asset, the specific asset used as a security deposit or collateral is at risk until you pay back the loan. However, there is no risk if you plan to repay the loan amount and interest, and accordingly, you repay it on time, then you’ll get back the ownership of your car.

How to Avail a Loan against a Car?

To be eligible for a pawn loan, you must bring a car (or any other vehicle that can be a motorbike, van, truck or any other vehicle) you own along with its purchase documents or Rego papers, your valid photo identification and that you must have attained the age of 18 years or over.

Unlike other traditional loans, availing cash loan against the car from a reputed pawnbrokerin Sydney is easy and effortless. Get in touch with Pawn a Car and you’re on your way to obtain an easy cash loan against your car for a short-term.