If you decide to take out Atlanta Title Loan and leave your car as collateral, compare and review the conditions offered by each establishment, not only for interest rates, but also for its condition and type. Jewelry, watches or electronic items are not the only objects that can be pawned in case of an economic emergency to obtain a little liquidity and get out of trouble. Your car also serves as a pledge and thus obtains a pledge loan, according to the value of the vehicle.
How it works?
Cars, new or used, with or without dents, any vehicle can be offered as a pledge in the different pawnshops. If you decide to pawn your car, it is necessary to compare and review the conditions offered by each establishment, not only for interest rates or commissions, but also for the state, model and type of vehicle that you plan to leave as a guarantee and the amount that they can give you.
Although it varies between each pawnshop, there are some primary requirements to meet so that the vehicle can be accepted as a pledge. It must be a maximum of 10 years old, that the documents that prove ownership are up to date, as well as taking into account order all vehicular procedures such as the current circulation card, verifications and possessions, etc.
Two valid options for you
In general, pawnshops offer two modalities in this type of pawn: the car can be left in the establishment’s custody, or, without custody, which is when the client retains the use and enjoyment of the unit even if it is as a guarantee. The latter is one of the most demanded by users. What advantage does it have? You have the option not to leave your vehicle, unlike other pawn operations, where the pledge remains in the custody of the lending institution. In this case, the client can take the car and continue driving it.
In case of leaving it without protection, a GPS is placed in the vehicle, but it depends on each institution if it charges or not for its installation. Regarding the amount of the loan to be granted for the value of the vehicle, the manager explained that up to 70% of the value of the car could be lent, taking as a reference the current value and the conditions of the vehicle.
Check costs and commissions
Like any other financial product, review the commissions and additional charges that can be charged, for example, a commission for leaving the car in the security of the pledge house, the payment of insurance against theft in case your car is taken, etc. An advantage of this type of loan is that it does not require verification of credit history since the car acts as collateral, and if the financing is not paid, there is no credit affectation either.
However, if the customer falls behind or defaults on payments, the pawnbroker holds the car as collateral and may keep it. Another one is that this type of financing is relatively faster than going to any other financial institution to request a loan since this type of pawn shop resolves between three and 48 hours, depending on the modality you choose; as well as the model and conditions of the vehicle.