Watch out for the “Pawn your car and still drive it” scam

Watch out for the “Pawn your car and still drive it” scam

Pawn Your Car ans Still Drive It Scam

South Africans are becoming more heavily indebted and struggle to make ends meet, with interest rate hikes and the increase in consumer goods, petrol and the weak economy crippling households across the country.

Many consumers had to reach out to lenders for loans to pay off their debt which put them into more debt and forced financial institutions to tighten their lending policies even more.

Most indebted consumers have a bad payment history and chances that they will receive a loan from the banks, or even loan sharks are very slim. Many South Africans find immediate rescue pawning they Jewelleries, Electronics and even their cars.

Pawn shops provide you with a loan and keep your valuables as collateral until you pay it back with the interest portion. Once you pay it back, you will receive your valuables.

Pawn shops have been around for ages and offer a quick solution for those who need cash instantly even if they are blacklisted. However, there are a few things one should watch out for and ask before they pawn their when pawning valuables and especially cars. Here are some.

  1. Search online for a reputable pawn shop, read reviews and comments customers left on their social media. If they have too many complaints, this should raise a red flag.
  2. Make sure they are registered with the NCR. If they are not, it is illegal for them to pawn and you should stay away.
  3. Don’t get tempted to too good to be true deals, When something sounds too good, it usually is. One scam you should watch out for is the “Pawn your car and still drive it” offered by a few “dodgy” pawn shops and was found illegal in South Africa. In the end, you will have to sign ownership of your car to the pawn shop and be forced to pay rental fees to keep driving your car. You will end up paying exorbitant interest rates and fees. Bottom line it’s far cheaper and safer to pawn your car with a pawn shop that keeps your car as collateral.
  4. Read the contract carefully and make sure you understand the terms and conditions of the loan as well as the rates and monthly payments.

Capital Pawn is NCR registered, and a reputable lender offers low rates and easy terms on all paid up cars. No credit check required. We approve deals in 30 minutes. Contact us now for a free quote & tailor-made deals.

 

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