Wherever you go, you hear the news about the South African economy being in a recession, about unemployment being on the rise, and about the cost of living that is on the increase. And the truth is we all feel the effect of this on our pocket on a daily basis. Generally, it means tightening our budgets a bit and to go without those things that can be considered a luxury for the time being. But what do you do when you suddenly need to pay for an emergency expense, need to make ends meet until the end of the month, or are faced with an opportunity that you cannot pass by? Did you know it is possible to take a loan against your car?
Yes, you read that right. You can use your vehicle as collateral to secure finance. This is especially handy when you need cash fast and cannot afford to deal with all the time-consuming red tape often present with banks. Securing a loan with an asset – which is what you are doing when you take a loan against your car – generally means less risk for the credit provider and makes credit quicker and easier to obtain. It is important to note that there are certain conditions for taking a loan against your car, so this article takes a closer look to help you decide whether this is the right option for you.
Before even looking at the process of securing a loan against your car, it is vital to make sure your vehicle qualifies to be used as collateral for credit. The first condition is that the vehicle must belong to you. This means that you are the owner, the vehicle is registered in your name, and you do not owe any money on the vehicle to anyone. In addition to this condition, the vehicle must also have a valid licence. It should go without saying that, for a vehicle to have a valid licence, it should be roadworthy. Furthermore, the vehicle should be in a drivable condition. If the vehicle cannot be used, it has very little value and is thus practically valueless as collateral for credit.
The value of the car will also be the factor that determines the amount of money you can secure as a loan against it. The higher the value of your vehicle, the larger the potential amount you qualify for. The value will be determined by the credit provider. They will provide you with an offer. Upon accepting the offer and signing the paperwork, the cash can be deposited into your account immediately. This means that you get instant cash, rather than having to wait weeks for approval. You also do not necessarily have to take a loan against your car; depending on the credit provider, you could provide alternative vehicles such as trucks, motorbikes, boats, caravans, and trailers as collateral for credit.
If taking a loan against your car sounds like the right solution for the cash injection you need, contact Cash Drive. We will assist you quickly and professionally, ensuring you get access to the finances you need as soon as possible.