The financial crisis, no income and stability, the lack of confidence in the future is what almost every resident of our country has faced. The current situation has resulted in an increase in sales of pledged cars. With the fall of the oil market and depreciation of the national currency, buying a collateral car can be a good investment.
Previously, a pledged vehicle could be bought at a bank, but this service was not very popular. Since a car at a reduced price was quickly bought up by someone, or the technical condition of the car did not match the price. The latter was much more common. As a result, people were no longer interested in this service provided by banking organizations.
As you know, many pawnshops offer not only loans secured by cars, but also a number of additional services, including the sale of mortgaged cars. Anyone can buy a car from a pawnshop, but many do not even know about this possibility.
How is buying a car from a pawnshop different from buying a car from a private ad sale or a car dealer? Which is more profitable?
A vehicle pawnshop is a credit organization that issues loans secured by vehicles - a car, a motorcycle, special machinery, a boat, a motorboat, a scooter, etc. Despite the relatively low interest rate and comfortable lending conditions, from time to time some vehicle pawnshop customers are unable to repay the debt, and in this case the pledge becomes the property of the pledge holder. Thus, a large vehicle pawnshop can accumulate a lot of cars that had not been bought back. Accordingly, the pledger is forced to put up a car for sale. The sale of pledged vehicles is not the main area of its activity. The main interest of such an organization is to recover their money as soon as possible; therefore, prices in vehicle pawnshops are below market prices. It would be more profitable for a company to sell an unredeemed car cheaper and as soon as possible, than to keep it in a guarded parking lot. The loan amount usually ranges from 60 to 90% of the estimated value of the car, and where necessary, a vehicle pawnshop can sell the car for exactly the same price, without any financial loss. In addition, vehicle pawnshops often carry out sales, reducing the already low prices by 5-20%.
The convenient terms of purchase are worth noting. When buying a car from a vehicle pawnshop, you can immediately pay the full amount, or use another option - get a loan secured by your old car and use this money to buy a new car. It is much easier and faster than taking out a car loan from a bank. The entire process of transaction registration will take from 30 minutes to 2 hours.
Of course, buying a car from a pawnshop has pros and cons. The biggest drawback is the limited choice. After all, even in the largest vehicle pawnshops you will only be offered a few options for different used models. The main advantage of buying mortgaged vehicles from a vehicle pawnshop is that all the cars passed not only a technical assessment of their condition, but also a check for authentication and arrests. Therefore, you should not worry about the transparency of the transaction. Also, the advantages include the time spent on the execution and signing of the contract from 30 minutes to 2 hours at most. Fast, profitable and convenient!