Owners of classic, vintage or luxury cars don’t necessarily have to sell their vehicles to unlock asset value. Instead, they can use their vehicles as collateral to secure instant cash loans.
What counts as a luxury car?
A luxury car is equipped with advanced performance capabilities, a plush interior, and the latest safety and technology features. Automotive brands like Mercedes, BMW, Audi, Porsche and Jaguar are synonymous with expensive, high-end vehicles.
What are possible benefits of getting a loan against a luxury car?
These types of loans are secured by the appraised value of the car. As a result, anybody who owns a fully paid-up luxury vehicle automatically qualifies for a loan.
Unlike unsecured loans from the bank, lenders specialising in the luxury car niche do not carry out credit assessments or require proof of income. Nor do they advise credit bureaux of transactions.
The entire process is discrete, and has no impact on a client’s credit history or score.
The loans process is quick and easy, and funds are available within 24 hours. The borrowed money can be used to pay for anything, from covering emergency expenses to improving business liquidity.
The terms of the agreement are negotiable and, provided an accredited finance provider, regulated by the National Credit Regulator (NCR), facilitates the loan, the fee structure is transparent, and the interest rates fall within National Credit Act (NCA) guidelines.
How to get a loan against a luxury car in South Africa
Getting a loan against a luxury vehicle is a simple step-by-step process:
- Call or contact the finance provider online, and submit as much information about your luxury car as possible – the make, model, age, mileage, condition and so on
- Follow up with a vehicle appraisal inspection at the lender’s offices
- Choose to accept the offer, and sign the agreement
- Hand the car over to the lender for the duration of the agreed term
- Wait as the funds are transferred into your bank account
Where to get a loan against a luxury car
You can approach a local pawn company specialising in vehicles. In this scenario, there’s no way of knowing whether you’re dealing with a legitimate or even honest dealer.
Alternatively, you can do your research and find a reputable asset-based loan provider online. Lamna is one such company that offers quick cash loans against the assessed value of personal and business assets.
Along with NCR accreditation and an excellent reputation, Lamna has conveniently located branches in Cape Town, Port Elizabeth, Durban and Sandton.
What you need to get a loan against a luxury car
The only documents you’ll need to facilitate the process of securing a loan against a luxury car are:
- the original car registration papers, which must be in the applicant’s name
- your South African identity document
- proof of residence (for example, a recent utilities bill).
At Lamna, we offer fast, discreet loans against the value of a wide range of assets, including vehicles. For more information about getting a loan against a luxury car, contact us on 086 111 2866 or simply complete and submit our online application form.
ILLUSTRATIVE EXAMPLE
Client borrows R10,000 for 90 days.
Loan Amount | Repayment Period | Monthly Interest | Total Cost of Loan | Initiation Fee | Monthly Fee | APR |
|---|---|---|---|---|---|---|
R10 000 | 3 months | R500.00 | R2 914.50 | R1 207.50 | R569.00 | 60% |
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.