June 23, 2024

At some point in your life, you may be going through difficult times financially. Know that now you have at your disposal several types of possible loans. But the one that will be developed in this article is the pawnbroker. In this type of loan, you can pledge any property you own, among them a car. Nowadays, you can pawn your car to get a loan quickly. Thus, you can get the money you need from it without difficulty. But like any loan, several steps must be followed before obtaining the money. First will be defined as a pledge, then the operation of a pledge loan for a car, and finally, the advantages and disadvantages. Read more (อ่านต่อ which is the term in Thai) here

A Pledge

A pledge is a kind of guarantee that the person who needs to lend gives to the lender to obtain money. It is in the form of a contract. You can pledge any asset, such as a house or a car. This method is often used when a person wants to buy such and such a thing but does not have the necessary means to buy it. The pledged property cannot be sold until the pledge has been lifted. Only the owner of the item can pawn it. A pledge loan is very popular because it is simple and fast. It also gives a solution for those who cannot get a personal loan from the bank. 

How A Car Pawnshop Works

It is now possible to pawn your car to get money quickly. To take advantage of the offer, you must ensure you own the car you want to pawn. You must have several documents to prove the car is yours. These documents are a registration certificate, a gray card in your name, and a technical inspection card. The pawnbroker will probably ask for a certificate of non-pledge of the car. This ensures that the car is not already pledged in a loan. The operation is then registered at the loan of the prefecture, which provides the gray card. Once the car is pawned, it cannot be sold. This condition is valid until the full refund of the money. As it is a quick way to get money, you can cash out the credit only 24 hours after the agreement. And depending on the signed contract, the repayment period can be up to 12 months.

Some Pros And Cons

The main advantage of a car pawn loan is that obtaining the money after the agreement is fast. Thus, it is a very convenient way to get money immediately. In the case of a car pawn, the advantage is that you can still drive your car during the period it is pledged. When you have paid off your entire loan, your car will no longer be pledged, and you can sell it if you wish. Its negative side is that the operation is very expensive. There is a risk of losing your car in the event of non-repayment of the debt.