If you find yourself with defaults , the need to get money and the lack of credit may be the reasons why you decide to pawn your car. For this reason, many companies offer loans guaranteed with your car, even with the possibility of continuing to use the vehicle.
There are several ways to make these car loans, and the two most common are:
However, and if you already have defaults, certain precautions should be taken before signing an agreement with these companies:
In both modalities, it is recommended to read the contract completely and know the commitment to be assumed, because on many occasions, after signing the agreement it is not possible for the client to return the borrowed money and he loses the car for a value less than the real one.
The first step that companies tend to take is to appraise the car, relying especially on the valuation tables published by various motor vehicle sales associations. However, this value is also calculated as a percentage of the purchase price that decreases as the age of the car increases.
In both cases, car prices are set down. The appraisal usually actually reflects between 60% and 80% of the real value of the car. But, for car loan companies, any vehicle is not conducive to business, since it has to be in good condition, they must have all the relevant documentation and taxes paid and cars that are more than ten years old are not usually accepted.
If the client accepts the amount of money offered, the car loan company will present you with a large number of papers to sign and will try to persuade you of the benefits of this operation, but you have to be very careful because you could be selling your car without having knowledge of it or accepting conditions that are almost impossible to cover in order to recover the car.
From HeartLand, we ask you please and we advise that you review well what you sign .
During the agreed term, there are car loan companies that keep the car on their premises . There are also others that offer the client to continue using it but a rental amount has to be paid . You must be very careful with this agreement , because that money compensated for the rental of your own vehicle is not deducted from the amount owed.
In addition, the company sometimes keeps a set of car keys and the vehicle documentation, so when putting the vehicle as collateral for the loan, if the loan expires, the payment of the loan has not been made. amount borrowed, the company withdraws the car to deal with the debt.
At HeartLand we offer a totally different way , even if you have defaults, you keep driving your car and you are paying a fee in which you pay off the loan from the first day , so in the end there is nothing pending.