Gaborone: Warning Against “Pawn Your Car and Still Drive It” Schemes

pawn and drive

Using a car or another vehicle as collateral for a loan is a quick, easy way of obtaining funds – but beware of “pawn your car and still drive it” schemes.

Pawning a vehicle in Gaborone

Pawning a vehicle is a legitimate way to secure a short-term loan in Gaborone.

This kind of loan may be an option even when circumstances prevent you from getting a traditional bank loan. It also doesn’t put your other assets at risk.

However, that doesn’t mean you don’t have to be careful of dodgy loan providers.

Stick with a trusted financial service provider. Make sure you read and understand all the fine print. And be especially wary of pawn and drive schemes.

With this kind of scheme, the lender will let you keep driving your car while you still owe them money. If this sounds too good to be true – well, it largely is.

How pawn and drive schemes work

Usually, an asset you use to secure a loan must be surrendered to the loan provider until the loan is repaid.

After the loan is settled in full, the asset is returned to you in its original condition. Provided you follow the agreed loan terms, your ownership of the asset (for example, a car) shouldn’t be affected in any way.

Pawn and drive schemes differ. Often, you’re required to sign ownership of your vehicle over to the lender.

The lender then charges you “rent” to keep driving your own car.

In some cases, you may even have to buy your car back from the lender at a later date (on top of repaying the loan and interest).

The pitfalls of pawn and drive schemes

Even lenders that comply with credit regulations can structure their asset-based loans in this way.

This is why so many people fall victim to these schemes and end up losing their vehicles.

Ultimately, it’s often cheaper to rent another car than to shoulder all the costs involved in a “pawn and drive” loan.

The safer option for pawning your car in Gaborone

At lamna, we offer asset-based loans against a number of assets, including vehicles.

We safely store your vehicle until your loan is repaid. After that, you get your car back. Nobody else will drive or use it, and it stays in your ownership.

We strongly believe that this is the only really safe and fair model for asset-based loans.

Some advantages of pawning your car with us:

  • same-day payment
  • no hidden fees or early settlement penalties
  • loans from P20,000 to P10 million
  • discrete, with no invasive credit or background checks
  • straightforward and trustworthy.

Where to pawn your car in Gaborone

lamna has operated in South Africa for many years, offering secure loans against a range of assets. More recently, lamna opened a branch in Gaborone, near Adcock Street.

Our loans are fast, discreet and safe, no matter what asset you choose to pawn.

We comply fully with the Non-Bank Financial Institutions Regulatory Authority Act (NBFIRA).

For more information about using a vehicle to get a loan in Gaborone, contact us on 71 388 088 or simply complete and submit our online application form.

Complete our Online Application Form