Why Pawn Your Vehicle?
Do you know that it is possible to pawn your car to obtain a loan? Pledge your vehicle provides additional guarantees to access the loan on the principle of collateral. The pledge of your car is a guarantee that can promote a loan application. In principle, it is similar to collateral since the value of the pledged property offers additional security that accompanies the credit process. Bear in mind that some pawnshops provide a 24-hour consultation (ปรึกษาได้ตลอด 24 ชม. which is the term in Thai)
Car pawnbroking is a common practice, which depends on certain conditions:
- You must own the pawned car
- The circulation permit must not be suspended
- Auctioneers must determine the value of the vehicle
Their estimate determines the loan amount granted, generally for one year, with the possibility of early repayment at no additional cost. At the end of the contract, the loan must be repaid. Otherwise, the car is sold at auction. A car pawn loan makes it possible to obtain the credit within 24 hours.
How To Pawn A Car?
A pawned car is reported to the prefecture, which issued its gray card. Its license plate is registered, making it impossible to resell the vehicle without the bank certifying the repayment of the credit in full. If non-payment with the Treasury, the State may order the pledge of your vehicle to guarantee part of your debt.
If you want to sell your car, you have only two options:
- Make an early repayment that releases the pledge
- Obtain a loan buy-back that includes the pledged car
- If you use a pawnbroker abroad, be careful about the interest rate charged and the repayment conditions, in particular concerning the duration of the loan.
The Pros And Cons Of Car Pawning
Pawning your car has advantages and disadvantages:
- The vehicle is not transferred since it is pledged and represents a guarantee. As long as you repay, it’s still yours
- The total cost of credit is reduced if you repay quickly
- The rate of a loan secured by a vehicle is much higher than a mortgage loan on real estate