Does Pawning Your Car’s ORCR Make Sense?

You never know when financial emergency strikes and so you should be prepared where to get additional funds when it does strike. At times, letting go of our valued assets is the best option for this period in our lives. One of these assets is your most prized car.

But you don’t have to abandon your car for quick cash. All you have to entrust as collateral is your car title, but does pawning your car’s ORCR make sense?

Let’s learn how it works.

Car pawning the traditional way

Pawning simply works as the exchange of an item or property for money, in which the item is valued at a specific rate that corresponds with the borrowed amount. For cars, the value depends on the condition and model of the vehicle as assessed by the lenders.

It comes with a contract or an agreement concerning the details of the loan, its terms, and, repayment. You receive the proceeds once you hand the item or property subjected as collateral. And the payment type is usually one-time, but installment can be arranged depending on the lender.

Being unable to pay the borrowed money on time can trouble you with a bigger payment. Worse, defaulting on the loan may cause the loss of your property. Your beloved item will be legally seized by the lender and be re-sold.

So, about pawning your car, this may be not the best option for you.

Lenders will take the car from you and it sits in storage until you paid enough to get it back. Car pawning will deprive you the travel free from hassles like frequent stops for picking up of co-passengers, loss of personal space, and a higher chance of being exposed to COVID 19.

Private transportation has long been essential in this age, however, the necessity of having cars is magnified with the current situation faced by the whole world. Since the loanable amount will not be the full value of your vehicle, car pawning serves less knowing what you will exchange it for in these critical times.

Pawning your car title

Car collateral loan or OR/CR loan resolves this situation. Here are the three simple reasons:

1. You get the cash and keep your car.

You receive the cash you need without losing your car. You have the funds granted by the lenders for emergencies or whatever purpose it may serve. At the same time, you have no worries about going to your work or destination because you can still drive the car. All you have to give is your car’s official receipt or certificate of registration as your collateral to the lenders – better use of the OR/CR rather than let it sit on your storage and forget it.

2. You can earn more cash by driving travelers or having it rented.

Aside from using it for personal service, you can take advantage of the opportunity to earn more cash by extending the transportation service to other people in exchange of fees. This way, the car pays the loan itself.

If you’re willing, you can drive your car for people who don’t want to avail of the public commute. You can sign up to Grab, apply for Transport Network Vehicle Service company, or just create an FB page for your transport service.

You may opt to have the car rented if you don’t want driving, provided you are aware of terms and risks of these businesses. Car collateral loans don’t only cover various models, it also includes trucks and vans. Allowing your units for movers and deliveries also lets you earn money.

3. It only takes a fast and simple application process.

Sangla OR/CR is becoming the best choice for quick cash as it doesn’t involve getting separated from your car. Other essential reasons also include the easy application, where a bad credit history does not disqualify the borrower, and the quick process for both approval and disbursement.

Commonly, the documents you need to file are the following: valid ID, proof of income, billing address, and, of course, OR/CR. Additional supporting documents may be required for special cases. The good thing is that the whole process can only take three business days.

So, does pawning your OR/CR make sense?

Yes, it does. The funding you receive without abandoning the car, which has been useful to your professional and private life, is a solution to destroys the concept of immediately selling your properties and valuable items to have cash. While a prized car fares better as collateral rather than business or house (which are too important and sentimental to lose), Sangla ORCR doesn’t deprive you of the ease and convenience of personal transportation. That is if you pay on time.