Applying for a loan using the car as collateral is an increasingly common financing method. Guess what, it is still growing. The pawning of cars is an alternative that many go to because Pawn My Car Atlanta allows you to get money ASAP. At CHAPES-JPL, you can apply for personal loans adaptable to any customer profile.
Loans with a car guarantee without changing the owner or changing ownership
Loans with the car as collateral have the great advantage that you will be able to continue using the car, which is very necessary if you use the car on a daily basis. However, there are also two types of contracts that may seem very similar, but in reality, they have vast differences. Before signing the loan contract for your car, make sure, if what you are signing is a contract for the sale of the vehicle or if it is a loan with the car as collateral. These terms are very confusing and are not clear in the entities that offer this type of service.
Loan for your car with a purchase contract
In this case, you will receive the “loan” money for the sale of the car. It is not a loan, but you sell the car to the pawnshop and therefore, it changes ownership. The car stays in a warehouse, but if you need to drive it, they offer the option of paying a monthly fee to rent the vehicle. You recover the vehicle when you pay the money they gave you. In reality, what you are doing is re-purchasing the car. This operation also implies paying for the change of ownership of the vehicle.
Loan for your car loan contract with the car as collateral
The entity grants a loan for your car that you must repay in installments along with interest. In this case, the car works purely as a guarantee in case of non-payment and does not change owners. You will not lose ownership of the car. The vehicle will continue to be in your name, but in the event that you do not repay the loan, you have the risk of losing the vehicle
Recommendations of loan with guarantee the vehicle
Before requesting a loan with the car as a guarantee, first resort to online credits in financial entities such as banks or credit companies, whose interest is lower. The option of pawning the car can be the last alternative, remember that you run the risk of losing the vehicle. Read the car loan contract carefully to understand what type you are signing and if it implies the change of ownership of the motor vehicle.
When will I receive the money from the car loan?
In general, you will receive the loan money for my car in approximately 24 hours after signing the contract. However, is the entire process 100% online? CHAPES-JPL is the only company whose hiring is 100% online, the rest of the companies require the visit of an appraiser to value your vehicle or a signature before a notary public.