loan against car

It’s common these days for people to use one of their valuable assets as collateral for a short-term loan. This type of loan is typically more convenient and quicker to process than a traditional bank loan.

Despite this, it’s fair to wonder just how much you can expect to get for a loan against an asset, such as a car. Can these amounts compare to a personal bank loan?

Asset-based finance from lamna

Asset-based loan values can vary quite drastically, all depending on the value of the asset in question. This is what makes asset-based loans so flexible.

The value of the loan is based on the asset you choose to use as collateral – not on your monthly salary, credit rating or investment portfolio.

In the past, lamna has approved loans ranging from R20,000 all the way up to R10 million.

All these loans were based on the value of the client’s high worth asset. These assets can be anything from valuable art and jewellery to vehicles like cars, motorbikes, trucks and even yachts or aeroplanes.

Factors that affect a loan against a car

When a car is used as collateral for the loan, there are a few factors that will affect the value of the loan that is offered. These include the following.


If you are still paying instalments on your vehicle, you can’t use it to get a loan. Your car needs to be fully paid off and you need to be in possession of the registration certificate for it to qualify.


Your car needs to be in good condition to be considered worthwhile collateral. Any damage will significantly lower the loan amount you can expect. This can include things like dents, scratches, stains on interior fabrics, cracked windows and poor tyre condition.

Service history

A full service history will go a long way to proving your vehicle is in good running condition. You should also disclose any recent repairs or part replacements that would make the vehicle more valuable. It also helps if all parts are original and not aftermarket.


The age of the vehicle plays a big role as well. With classic cars, sometimes older is better. But generally speaking, modern cars are more valuable the newer they are. That said, you can still get a decent loan offer against an older car if it’s in good condition.

Make and model

The make and model of your car will determine its baseline worth before we even consider the other factors. For example, a recent loan offer on a Land Rover was about R500,000 while a Ferrari managed closer to R1.4 million.

How to get an asset-based loan against your vehicle

The process to get an asset-based loan for your car is incredibly simple and quick. Contact us and let us know the make, model, year and mileage of your vehicle and we will give you a provisional quote immediately.

You then bring the car to one of our branches to be more thoroughly evaluated before the loan offer is finalised. If you are happy with the amount, you will need to submit the car’s original registration document, your ID and proof of residence. The funds are then transferred into your bank account immediately.

For the duration of the loan, your vehicle is securely stored with us and is not driven by anyone. Once the loan and interest are repaid, your vehicle is returned to you in the same condition and without your ownership being affected.

Here are some of the other benefits of getting an asset-based loan from lamna:

  • our interest rates are competitive and fall within NCR guidelines
  • we don’t charge hidden fees or early settlement penalties
  • we don’t share your details with credit bureaux or other third parties
  • your assets are valued by independent appraisers
  • loan applications are processed while you wait
  • funds are transferred to your account via EFT, usually with 24 hours.

At lamna, we offer fast, discreet loans against the value of a wide range of assets in Cape Town, Durban, Johannesburg and Port Elizabeth. For more information about using a vehicle to secure a short-term loan, contact us on 086 111 2866 or simply complete and submit our online application form.

Complete our Online Application Form

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