Hock Your Ride and Acquire Instant Cash
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August 17, 2018

Using Your Car and Other Assets to Acquire Instant Cash!

The automotive industry is growing at a constant rate in Australia. The industry is set to witness a steady growth rate of 0.4% for the next four years[1].  Vehicles including cars, trailers, trucks, caravans, machinery, jetskis or motorbikes are part of every household today. With companies like hockyourride, it is easy to convert your ride into some extra cash.

All you need to do is submit your vehicle’s title to the auto mobile pawnbroker and gain instant access to a secured loan facility. Since these are loans secured against your vehicles, there are minimal documentary and credit score requirements. This makes the whole process quick, convenient, and easy for the lender and borrower both.

Benefits of Pawning Your Vehicle

Pawning your vehicle is an easy way to get access to instant cash to fulfil your short-term needs. Some of the major reasons why customers use the vehicle pawn brokers include:

 

1.      Access to Instant Cash

When there are past due bills lying around your table and you are short of cash, you need access to instant money. If you approach a bank for a short-term or personal loan, it may take weeks before you get approval. Automobile pawnbrokers can provide you cash on the spot! All you need to have is your valid ID and a lien-free title on your vehicle and you can be eligible for these types of secured loans.

 

2.      No Worries If You Have a Bad Credit History

Pawnbrokers have years of experience in providing secured loans to their clients against worthy collateral. If you have a truck, automobile or even a boat that you are not using these days, putting it as collateral with an automobile pawnbroker will set-off your bad credit history.

Since pawnbrokers claim the title on your vehicle, they are less concerned about your repayment capacity. They offer you instant cash to meet your short-term needs while putting a lien on your vehicle in case you default on your loan.

 

3.      Drive Away Loans

Certain pawnbrokers provide their customers with drive away loan facilities as well. All you need to do is submit your title to the pawnbroker and provide a valid proof of insurance. The secured loan will be collateralized against your car but you need not keep it in your pawnbroker storage.

 

How to Maximize Your Secured Auto Loan

Securing your vehicle against a loan facility is a quick and easy way to get some extra cash. However, it is essential that you use your secured loan in the most efficient manner to avoid default. Some of the ways you can use to maximize your secured loan facility include:

 

1.      Paying It Back As Soon As Possible

Pawnbrokers use your car title to protect their interest in case you default on your loan. Since these loans have low documentation and credit score requirements, the interest rates may be high. Hence, to avoid paying a higher price over the long term of your borrowed amount, the best strategy is to pay it off as soon as possible.

 

2.      Borrow Enough But Not More than What You Need

Automobile pawnbrokers and other asset pawnbrokers usually lend you 60% to 70% of the collateral value. However, you need not borrow the maximum amount. In fact, borrowing a lower amount allows you to pay it back easily and more quickly. You can also bargain a lower interest rate based on the lower loan to security ratio that is being offered to you.

 

3.      Know Exactly Why You Need a Secured Loan

If you do not utilize your automobile secured loan effectively, you might risk increasing your debt burden rather than reducing it. Hence, you need to have a proper plan in place about how you will use the extra cash you acquired from the pawnbroker. You also need to figure out how and when you will be able to pay off your secured loan.

 

Bottom Line

Pawnbrokers offer you a loan amount based on the value of your collateral. It is therefore in your best interest to display your vehicle or any other asset in its best shape possible while dealing with your lender. You also need to bear in mind that it is quite tempting to use this instant cash in ways that may increase your debt burden.

However, you should have clarity about what you are to do with the loan amount before you begin the process. Doing proper homework before reaching out to a vehicle pawnbroker will help you save both time and money!

 

[1]https://www.mtaa.com.au/images/docs/Automotive_industry_in_Australia-Uploaded_Document.pdf

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