What Is a Truck Pawn Loan and When Would You Need One?

Most people have heard of pawning something at a pawn shop in exchange for a small loan, but that’s not going to be very helpful if you need thousands of dollars in a hurry. A better option would be to get a Pawn Loan from a private lender for thousands in quick cash and one popular option is a Truck Pawn Loan.

Let’s learn more about Truck Pawn Loans, what’s involved and how it might be the right finance solution for you.

What Is a Truck Pawn Loan?

A Truck Pawn Loan simply means you borrow money against the market value of your truck. You bring it into the premises of a lender that offers Pawn Loans on trucks and other vehicles and they make an evaluation of what your truck is worth. You work out a deal, they lend you the money you need and keep your truck in their possession until you repay the loan in full. Your truck is then returned to you in the same pristine condition you left it.

How Much Can You Borrow?

As a general rule, you can borrow up to 60% of the market value. For example, if your truck is deemed to be worth $60K, you could borrow up to $36,000. Of course, you don’t have to borrow the full amount and might only borrow what you really need, like $5K or $10K.

A typical minimum amount for a Pawn Loan of this type would be around $2K and some lenders will even allow loans of up to $500,000. Of course, this is all contingent on the value of the truck or other items you have to pawn.

Rates and loan amounts will vary from lender to lender, so be sure to check the details on their websites.

Where To Get a Truck Pawn Loan

One main destination is to pawn your truck in Sydney. The NSW capital is one of the main hubs in Australia for Truck Pawn Loans and Pawn Loans on a larger scale. If you’re not located in or near Sydney, just do an online search for private lenders who offer Pawn Loans in your area and see what places might be available.

Instant Approval Pawn Loans

The really great thing about a Pawn Loan is they are much easier to get an approval compared to some other forms of finance. Reason being, you are leaving your truck with the lender as security against the loan. Even if you have a poor credit history or even find yourself out of work, you can still get approved for a Truck Pawn Loan and in very quick time.

Private lenders make it a point to process and approve all their loan applications in quick time and it’s the same for pawn loans. You’ll generally have instant approval and the money in your bank account that same day.

It sounds like a fast and easy process, because it is!

What Are the Repayment Terms?

Once again, you’ll want to check the lender’s website or give them a call to find out, as not every lender will be exactly the same. As a guide, these are short term loans that usually have to be repaid within 3 months – this includes the loan amount, loan establishment fee (if there is one) and any interest owing on the borrowed money.

The advantage of a short-term Pawn Loan is you’ll keep the overall interest payable down to a minimum due to paying out the loan in less than a few months, instead of several years with a bank loan.

Everything is about speed. No credit or employment checks, fast appraisals and approvals, quick payment of funds into your bank account and short repayment terms.

The Takeaway

If you own a truck and you need money fast, a Truck Pawn Loan is worth looking into. So long as you have the means to repay the loan in the designated time, it’s an excellent solution to getting your hands on the cash you need, when you need it.

Do your research on Pawn Loan lenders in your area, study their terms and conditions thoroughly and, if you’re unsure about anything, just give them a call and talk to someone. The process is relatively simple with minimal paperwork involved.

About the author

No comments

Leave a Reply

Your email address will not be published. Required fields are marked *