How to Pawn Your Car in the Philippines

If you’re short on funds, pawning your items is one option to get some extra cash quickly. It’s a temporary answer if you need money to pay for anything right away due to an emergency. With that said, you can pawn your vehicle’s OR/CR to make some quick cash, but there are several concerns you should be aware of before doing so. 

Make sure you have your finances in order and are able to pay before considering this option. Pawning your car should only be used as a last resort if all other options have failed. But, exactly, how does it work? Global Dominion Financial, Inc. tells you how.

Prepare your documents.

Car pawn businesses have a variety of documentation requirements. However, most of the documents they’ll require from you will be the same. A recent copy of your car’s OR and CR, at least two valid IDs, your most recent evidence of billing, your Tax Identification Number (TIN), and a verified source of income are all required. The OR/CR must be signed by the individual who is applying for the loan. In the case of used automobiles, an absolute deed of sale may be substituted for the OR/CR. This confirms ownership and payment of the vehicle in full.

Be qualified. 

To be eligible for pawning, your car must meet three criteria. First and foremost, your car must not be financed and must be totally paid for or owned. Second, if the car has not yet been fully paid for, it must be paid at least a proportion of the selling price or fair market value. This is usually one of the mechanics found in vehicle loan schemes, and it depends on the initial down payment paid by the owner. Third, if the vehicle being pawned is a used vehicle, it must be completely paid or owned. Even if it isn’t in the name of the current owner, it can still be pawned. However, in this scenario, more documents may be required. 

Take risks.

The dangers of pawning your belongings begin with the exorbitant interest rates. The average interest rate is around 4%, although some pawn shops may charge you 10% interest each month. In addition, there are expenses associated with the borrowing procedure. Low ratings are another danger. This will vary depending on the lending provider, but you may receive less than the value of your item. When pawning off your OR/CR, there’s also the possibility of loan durations. These durations are frequently brief, and the inability to repay the debt may result in a loan extension. Scams are the last thing to watch out for while looking to loan out your OR/CR. Be cautious about where you apply for a loan.

Pawn your car.

You can go to your favorite pawn shop and trade your automobile for cash once you’re convinced that you and your car are qualified, and you have all of the necessary documentation and documents in place. While the majority of applications are approved, there are a few requirements that you can meet to improve your chances. These include, among other things, a high credit score, a stable job with a steady income, and an active bank account. These variables are known to speed up pawn and loan applications, albeit this is not always the case.

If you’re in desperate need of cash, this may be a possibility for you; however, do your homework beforehand and make sure your finances are in order. Make sure to pay the interest and any expenses associated with the loan. Having the ability to pay off the loan fast reduces the chance of incurring additional fees. 

So, think carefully about the pawn and all of your other possibilities. Choose well-known, car financial loan institutions like Global Dominion OR/CR Sangla services.