You have decided to give your car as collateral but you find that there are two types of commitment and you do not know very well which one to choose. What types of auto pawn are there? Which of the modalities is the best?
In this post we are going to explain the two ways in which you can pawn your vehicle and describe its characteristics so that you can make the best decision. First of all, to decide what type of car pawn is best, we have to assess three fundamental aspects :
Car appraisal and how much money you will receive as a loan or credit.
Speed in managing the pawn and obtaining the loan
Availability of the car to use it
These three criteria are the most relevant, since if you are going to pawn your car you will probably do so motivated by a difficult economic situation or the need for immediate liquidity. Therefore, you want to earn the most money possible in the shortest time. But of course, if your car is a work tool, or you need it to continue with your life, you must prevent pawning it to solve an economic problem from becoming a bigger one when you stop having it.
Pawn with custody or leaving the car in deposit . This is the classic or standard pawn mode, in which the collateral vehicle is left immobilized in the deposit of the loan house until the credit is repaid. Some companies claim to offer more money with this modality, but many times it is not true since they charge additional fees to maintain the vehicle. The resulting difference is counterproductive for the customer. Also, the granting of credit or microcredit tends to take a little longer since it takes more time to manage the process. But the great disadvantage of this type of vehicle pawn is that you will not be able to use it since it will be immobilized .
Pawn without custody or keeping the vehicle to continue using it . Unlike the previous one, this type does not work like the traditional endeavor in which you leave an asset in custody, but at all times you keep the car in your possession and you can continue driving it. The car is still the endorsement or guarantee of the credit or loan but you should not leave it deposited. This is the main advantage of non-custodial pawn over custodial pawn. It is also usually faster, so you get the money almost immediately. For example, we, Credit for your car, offer the capital in less than 24 hours. Regarding credit, as in any endeavor, it depends on the appraisal of the property, but you receive the clean amount. Without having to subtract garage or vehicle maintenance expenses from the company.
As you can see, between these two options, we recommend the pawn of cars without custody because they are all advantages: it is faster, you can earn more money and at all times you continue using your car . For these reasons, we work with the non-custodial pawn.