Pawning a car essentially unlocks its value without selling it. It can be a quick, easy and transparent way to raise funds.
Here’s a guide on how to pawn a car in Gaborone safely through a service provider you can trust.
What does pawning a vehicle involve?
Pawning a vehicle involves handing a car, truck, bakkie or motorbike over to a reputable finance company as security for a short-term loan.
The vehicle must be paid up in full. The amount the registered owner can borrow against the car is dependent on the estimated resale value.
When the debt is cleared, the owner gets the vehicle back.
How to a pawn a car in Gaborone
With lamna Botswana as your finance provider, all it takes to pawn a car in Gaborone is one quick phone call. You give us the vehicle’s details and we call you back with an initial offer of a loan.
The vehicle is brought to our offices in Gaborone, at an agreed date and time, where its condition is independently appraised. If all is in order, an official loan agreement is drawn up and signed by both parties.
The car is handed over for safekeeping for the term of the loan. The funds are deposited into your account.
While in our custody, the vehicle is insured and stored in a high-security facility. It is returned to you in the same condition it was left in, provided the loan is paid back in full.
What you need to pawn a car
When you pawn a car in Gaborone, the following documents are required:
- a copy of your national identity card (Omang)
- proof of where you live
- the vehicle’s original registration papers in your name.
Warning against ‘pawn and drive’ schemes
Pawn and drive schemes are often in the news – for all the wrong reasons. Although pawning a car – and still having the benefit of driving it – may seem like a great idea, the opposite is true.
In South Africa, the National Credit Regulator has declared them illegal. Why would it do that?
In the majority of cases, the vehicle’s ownership has to be signed over to the pawn and drive company. Interest rates are extortionate. Penalties and fees are often randomly invoked.
Car owners may be expected to pay a fixed monthly rental rate for the “privilege” of driving their own car – a rate that’s much higher than traditional rental rates.
Pawn and drive schemes are high risk and expensive. They should be avoided at all costs.
Our offices in Gaborone
When you pawn a car with lamna Botswana, you’re dealing with a reputable finance company that’s been operating in South Africa for a number of decades. We have a number of branches in major South African cities.
We’re registered with the National Credit Regulator and comply with national credit guidelines. Our Gaborone office is located off the A1 Highway, in Phakalane, at Unit 8, Plot 43173, Carramba Business Park, Phakalane.
lamna Botswana
Pawning a car in Gaborone is safe with lamna Botswana. We also offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or valuable works of art.
For more information about using an asset to secure a short-term loan, contact us on 71 388 088 or simply complete and submit our online application form.