When is the best time to buy a second-hand car cheaply, how to calculate the price of a car to sell it, what to take into account when buying a second-hand vehicle, some of the many questions that people usually have who are about to carry out this type of procedure. But what if you want to pawn your car? An alternative to take into account if what is needed is to obtain money in times of need.
Pawning a car is a way to get a loan by using said vehicle as a guarantee of payment. The operation of this system tries to obtain money, which must be returned according to specific conditions, by offering the car as collateral. However, this procedure is carried out following a series of steps and issues to take into account, since there are also different ways to pawn a car.
If you have decided to take the plunge and pawn the car, it is important to know how this process works, based on very specific requirements, since not everyone can pawn it. Only vehicles that are less than ten years old or that are high-end and that are fully paid for, with no outstanding financing or installments, are eligible to be pawned. It is essential that the car meets these requirements in order to continue with the rest of the steps.
Then you have to differentiate between whether it is a pawn with custody or one without custody. In the first, the entity remains in possession of the car until the money is returned. While in the second, the owner can continue to use his vehicle, but must pay a rental for it and this must be fully insured.
The first thing to do is appraise the vehicle, since only then can it be determined what its value is and, therefore, what amount the entity in charge of making the loan is capable of offering. Both figures must be consistent according to the criteria of the entity, which will have the last word to determine what maximum amount to make available to the owner in exchange for the commitment.
The documentation used to prove the vehicle and its owner is presented below. The files that must be submitted to use the car as a guarantee are: the national identity document of the owner, the document proving that the vehicle is free of charges, the circulation permit, the technical file of the same, the circulation tax and the ITV document in force.
To finish, all you have to do is wait for the entity in charge of the loan to complete the feasibility study, which will determine whether or not the applicant will finally be able to receive the established amount of money. And the conditions for its return will also be clarified.