Although we specialise in loans against luxury assets, Lamna does offer car pawn loans for older cars as well, including cars older than 10 years. Our lending process is fast, straightforward and discreet.
Loans against older cars
A loan against a car of any age is what’s known as an asset-based loan. This means the loan is secured by the value of the vehicle.
Your ownership of the vehicle is not affected by the loan, so there’s no need to sell the car in order to access its value.
The lender will take temporary possession of the vehicle and store it securely for the repayment period. Once the loan is repaid in full, the vehicle is returned to you.
How much can I borrow against an older car?
Loans against older cars can range from R20,000 all the way up to several million, depending on the value of the vehicle.
Even an older car can be worth a lot of money, but it depends on a few factors. The make and model of the car makes a big difference, with rare, collectable or vintage cars usually being worth much more.
The car also needs to be in good condition, with no rust or damage. Vehicles with a complete service history are also worth more.
To give an accurate loan quote, the vehicle will need to be evaluated to get a resale value. The loan amount will then be a percentage of this resale value.
When a car pawn loan makes good sense
Car pawn loans are quick and easy, so they can give you fast access to cash. This is particularly useful when you’re hit with an unexpected bill like an emergency root canal or unavoidable car repairs.
They can also come in handy when there’s a rare opportunity to fund a business venture or invest in a new business equipment where, if you don’t jump at it, you may lose the opportunity.
Like most short-term loans, this type of loan makes sense when you have an immediate need for funds and you know you’ll be in the position to repay the loan within a couple of months.
Next steps: how to apply for a car pawn loan against an older car
The process for a car pawn loan is simple, fast and discreet. Simply submit an online application detailing your car. We’ll offer you a provisional loan quote based on this information.
If you’re happy to go ahead, you will bring the car into our offices for an evaluation to confirm the loan amount.
You will also need to submit a copy of your ID, proof of address and the vehicle’s original registration certificate. The car will need to be in your name and fully paid off to qualify.
If everything is in order, the funds are then transferred directly into your bank account within 24 hours.
Where to get car pawn loans for older cars in Cape Town
Lamna offers car pawn loans for older cars in Cape Town. Our offices are at 128 Strand Street in the Soho on Strand building. With Lamna, you’re guaranteed:
- simple application process
- no credit checks and no impact on your credit score
- fast access to funds
- no need to disclose your income
- safe and secure storage for your vehicle
- no hidden fees or early settlement penalties.
Lamna is a registered credit provider (registration number NCRCP7428) and complies with NCR regulations. To learn more about getting a car pawn loan for older cars in Cape Town, contact us on 086 111 2866.
Client borrows R10,000 for 90 days.
Total Cost of Loan
Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.
A warning against pawn and still drive it schemes in South Africa, supported by a recent article from The Daily Maverick.