Pawning Your Car Vs Using Your Car As A Security For A Loan
What Is Pawning Your Car?
A pawn is basically money you receive against the value of your property. If you default on the loan you will not receive the item back. When you agree to pawn an item you are agreeing to the fact that the asset belongs to the pawnbroker if you do not meet the terms of the contract.
Pawning an item like a car could get you fast, easy, and accessible cash. However, it is important to remember that pawnbrokers do not have to abide by the same code of responsible lending that regular lenders do. The upside to less vigilant regulation is there are fewer requirements to meet in order to get a pawn loan against your car, however, if you do default on the loan your asset will often immediately become the property of the pawnbroker.
Can I Drive My Car If I Pawn It?
Have you been googling ‘pawn my car and still drive it near me’? Wondering whether a pawnbroker will allow you to drive your car whilst it is being used against a loan? Unfortunately, we cannot speak for all pawnbrokers as this is usually at their discretion. However, there are many pawnbrokers on the market that will allow you to drive your car whilst using it against a loan.
Worried that your car might not be worth much? Some pawn shops might even lend you money against car parts. So, if your car is a bit of a lemon, that doesn’t necessarily mean you won’t get anything for it. As all pawnbrokers are very different it is usually best to look into their individual terms and conditions to find out what you could be eligible.
What Is A Secured Loan?
A secured loan is where the borrower pledges an asset as collateral against the loan. This becomes a secured debt owed to the creditor.
If you put a car against a secured loan from a lender, repossession of your car will often be the last resort. Many lenders will do their best to explore other avenues, such as restructuring your loan before they take your car completely. Generally, there is a lot more regulation surrounding small and medium-sized lenders.
A secured loan is often considered a much safer option to a pawn loan. However, in some cases, it may take a little longer to get the cash. If you prefer to err on the side of caution, and have been searching the web for ‘secured loans against car’, this method could be the best way to get the cash you need with minimal risk.
Can I Drive My Car Whilst Using It As Collateral For A Loan?
Have you been googling ‘loan against car’, ‘borrow money against vehicle’ or ‘car title loans’? Then you are probably aware of the different types of lenders offering a variety of different terms on a secured loan. However, if you’re wondering whether or not you will be able to drive your car whilst using it as collateral against a secured loan, the answer is usually ‘yes’. Obviously, we cannot speak for all lenders, however, this is usually the rule of thumb. If you are unsure, however, it is important to check with the individual lender.
Jacaranda Finance Australia
Whilst Jacaranda Finance is not a pawnbroker and therefore, will not offer instant cash against a vehicle. We do offer secured loans that could be approved on the same day, depending on when you apply or your financial situation. We are all about providing ease and convenience without compromising on our commitment to responsible lending. At Jacaranda, our whole application process is 100% online. That means you could apply for a secured loan of up to $10,000 from the comfort of your own home – you could even fill out an application on your smartphone.
Jacaranda Finance is proud of the fact that we give all Aussies a fair go at a loan. We do our best to match you with a loan product that is right for your individual situation. Often, using a car as collateral can be a safe and efficient method of getting the cash you need. However, you can rest easy knowing that we will never lend any of our customers an amount of cash we believe they will not be able to repay. Our loan assessment process is realistic and our team is down to earth – Jacaranda wants to help you get back on your feet.
Will Jacaranda Take Your Car?
Unlike a pawnbroker, Jacaranda Finance does not have the right to immediately take ownership of your car if repayments are missed or failed. As we are a responsible lender, our team must issue a series of notices to warn of a defaulted payment. At the end of the day, our main objective is not to take your car.
Jacaranda would prefer to offer you other options of repayment or restructure your loan in order to have the defaults settled. The only time we will take your car is if all other avenues have been exhausted. Our team understands that sometimes in life things don’t go exactly to plan, we will always do our best to assist you in whatever way possible.
Am I eligible and what do I need to apply?
At Jacaranda, we like to keep our eligibility criteria fairly flexible so all Aussies have a fair go at a loan. Here are the criteria we need our applicants to meet:
- All applicants must be over the age of 18;
- We require that all applicants have had a regular income into an account of their own for the last 3-months;
- Jacaranda requires that all applicants be Australian citizens or permanent residents;
- All applicants must have an active email address and mobile number;
- 100 points of ID will be required for the application; and
- Online banking details must be provided as a part of the application.
When you apply for a secured loan with Jacaranda Finance we do our best to get back to you with an outcome as soon as possible. If you apply during regular AEST business hours, our team will do their best to get back to you within 60-minutes. If all goes to plan, you could even have the cash in your account by the end of the day.
It is important to remember, however, that inter-bank transfer times can affect the speed at which the cash hits your account. If you are considering an application with Jacaranda it is a good idea to have all of your personal documentation handy as this will speed up the process considerably.
At Jacaranda Finance, we know our business would not exist without our customers. That’s why we value fantastic customer service and responsible lending. Our team is always here to assist you. Since we are 100% online, you can flick us a message at any time and we will do our best to get back to you as soon as possible!
How To Apply
If you’re ready to apply for one of our car title loans, here’s what you’ll need to do:
If you’re ready to start your application simply scroll up and use our loan calculator to select an amount and repayment period. Hit ‘apply now’ to begin our 100% online application form.
Our online application form could only take you a few minutes to complete. Once this is completed, all that is left to do is relax! Our team will take it from there. If you have applied during AEST business hours we will do our best to get back to you with an outcome within 60-minutes.
If your application is successful our team will be in touch. We will send over an agreement for you to review and sign. It is important to make yourself aware of any payments you could incur for failed payment – Jacaranda Finance will always make these clear in your contract.
Once we receive your signed contract, our team will transfer the funds to your account. It is important to remember that inter-bank transfer times can affect how quickly you actually receive the cash.
Ready to Apply?
Simply scroll up and you’ll find our handy loan calculator. Select how much you wish to borrow and for how long, then when you’re happy with your proposed terms, click the Apply Now button. From there, we will do everything we can to help you out!
Don’t wait, get started today!
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Small Personal Loan
Up to 20% Establishment Fee
+ monthly fee up to 4%
Jacaranda Finance does not charge an annual interest rate on SACC loans. These small amount loans incur 'fees' instead of interest. The maximum comparison rate on our loans between $300 and $2000 is 199.43%.WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.
Loan Amount of $1,000 over 12 months repayable weekly (50 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $480 (fees based on 4% per month over 50 weeks) = $1,680 total repayable in 50 weekly installments of $33.60.
Medium Personal Loan
Annual Percentage Rate (APR) starts at 20.56%
Comparison Rate is 20.56% per annum.
This comparison rate is based on a medium amount credit contract of $2,500 repaid over 2 years with a $400 establishment fee and APR of 20.56%.WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $555.83 (reducing interest*) = $3955.83 total repayable over 18 months with weekly installments of $50.71.
Loan Amount of $4,500 over 24 months repayable weekly (104 weekly repayments). $4,500 (Principle Amount) + $400 (Establishment Fee) + $1081.85 (reducing interest*) = $5981.85 total repayable over 24 months with weekly installments of $57.51
Large Personal Loan
Annual Percentage Rate (APR) is 12%
Comparison rate is 19.88% per annum.
Loan Amount of $5,000 over 18 months repayable weekly (78 weekly repayments). $5,000 (Principle Amount) + $1831.16 (Interest) = $6831.16 total repayable over 18 months with weekly installments of $87.57.
Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5041.72 (Interest) = $15041.72 total repayable over 24 months with weekly installments of $144.63.