- Cars

What is a Car Pawn Loan Atlanta? What are the benefits?

Requesting a loan using the car as collateral is an increasingly popular financing method in Atlanta. In this article, we are going to explain everything you need to know about pawning cars. At Car Pawn Loan Atlanta, we always want to give you top-level information. If you are looking for financing, do not stop reading this article.

What is car pawn?

Applying for a loan for a car is that you put the vehicle you own as collateral. The car pawnshop grants you a credit for the value of the car. In general, in Atlanta they can give you up to 70% of the value of the vehicle that you put at their disposal. In exchange, you will have to repay the loan amount plus interest in installments. In the event that you cannot comply with the credit contract for a car and you do not return the money within the established period, you will lose your car since it works as a guarantee. Normally people who have a bad credit history or outstanding payments on other loans can take advantage of auto pawning. It is a solution if the lenders do not grant you money for having a bad Credit Bureau.

Advantages of car pawn

  • You access money quickly and easily
  • There are car pawnshops that allow you to use the car while you have it pawned
  • In most cases, they do not consult the credit bureau, since the guarantee is the car
  • You can use a car loan for what you need most. 

Know pawn loan in depth

The average percentage that they lend you is 70% of the value of the vehicle if you leave it in custody. If you keep using it, normally they will only lend you 50% or 60% of the value. In this case, the interest rate will be higher. The contract can be with or without transfer of possession. If it is with transmission of possession, the car will have to be kept safe at the car pawnshop. If you decide to take the car after the pledge, the contract is more complex and there may be clauses that you do not see at first. In some situations, you have to pay insurance against theft, storage and VAT.

What are the main requirements of the car pawn?

Most car pawnshops ask that the vehicle be a maximum of 10 years old, although depending on the model it may be less. You must have a valid official identification with photograph, and a copy of a valid proof of address. An original car invoice issued by an authorized national agency. In some cases, insurance or re-billed cars are not accepted. The invoice must be endorsed a maximum of three times and in the name of the loan applicant. The data and signatures must be chronologically consistent. The last five receipts of the tenure payment are optional. The car should have current plates, and vehicle verification vouchers. An original proof of a bank account statement is required. They are going to check 19 security points.