It’s understandable that someone might consider selling their luxury watch when they need access to funds.
Instead of selling a treasured luxury watch, you can access its value through an asset-based loan.
This type of loan uses the watch as collateral, so you don’t need to sell your investment.
Below, we cover the ins and outs of pawning a Patek Philippe watch in South Africa:
Thinking of pawning a Patek Philippe watch? We offer fast, discreet short-term loans against most luxury watches. Apply online in minutes.
How does pawning a Patek Philippe watch work?
Pawning is very straightforward. You give the lender something of value and in return the lender gives you a loan.
The lender keeps your asset until you have repaid the loan in full and then it is returned to you.
This is what is known as a secured loan. In this case, a valuable Patek Philippe watch serves as security.
How much can you borrow against a luxury watch?
The loan amount is based on the value of the watch. Usually, this is a percentage of the current market resale value.
This is because the watch would need to be sold to cover the loan amount in the unlikely event that the loan cannot be repaid.
At Lamna, we have offered loans ranging from tens of thousands up to R10 million and more. It depends on the value of the asset.
When to pawn a Patek Philippe watch
Pawning an asset like a luxury watch is a fast and discreet way to get a loan. Most people use asset-based loans when they need access to funds in a hurry.
That said, this type of loan is short term. It’s not wise to get a loan against a Patek Philippe watch if you’re not 100% sure you’ll be able to repay the debt within a few months.
Most people get an asset-based loan when they have a temporary gap in their finances. For example, when they’re waiting on a payment or other type of cash injection, but they need to make a purchase or investment in the interim.
The benefits of using Lamna for an asset-based loan
As an alternative to traditional bank loans, using Lamna for an asset-based loan comes with a variety of benefits:
Easy, online application
Apply in minutes.
Discreet and transparent
100% confidential, with no hidden costs or fees.
No impact on credit score
We don’t share information with credit bureaux.
Fast access to funds
Get funds fast, typically within 24 hours.
Fully accredited
Lamna is a trusted, registered credit provider.
Trusted and established
We have many years’ experience with branches across South Africa.
What makes Patek Philippe watches so valuable?
Patek Philippe is one of the finest watchmakers in the world. The Swiss company has been making luxury watches since 1839.
Its watches are known for their beauty and unmatched craftsmanship. Many aficionados liken a Patek Philippe watch to a piece of art.
The design of each watch can take up to two years. Production, which is done meticulously by hand, can take a year.
Exclusivity adds to their value. Since its inception, the company has made fewer than one million watches in almost two centuries.
Patek Philippe watches frequently sell for millions of US dollars. In 2019, the limited-edition Grandmaster Chime (6300A-01) sold at auction for a record-breaking US$31.9 million.
Next steps: pawning a Patek Philippe watch with Lamna
To pawn a Patek Philippe watch with Lamna, apply online and provide us with information about your watch. A consultant will get in touch with a preliminary loan offer.
If you’re happy to go ahead, simply submit proof of residence, a copy of your ID and proof of ownership of the watch. Once approved, the funds will be transferred directly into your bank account within 24 hours.
Lamna is a registered financial services provider with branches across South Africa, as well as in London, England. We offer loan terms that are transparent and fair, and our interest rates are competitive.
For more information about pawning a Patek Philippe watch in South Africa, contact us on 086 111 2866 or simply apply online in minutes.
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 terms range from a minimum of 3 months to a maximum of 24 months. Apart from the initiation and monthly fees shown in the table, the only additional fee is credit life insurance if the borrower does not have this already.
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