How to Pawn Your Car

Pawn shops in the Philippines provide a wide range of financial services to Filipinos, including providing loans, processing money remittances, and accepting bills payment, among others. Thus, it shouldn’t surprise you that they can also help you pawn your car in case of emergency fiscal situations. But how does this system work? Read on below to find out!

Make Sure You’re Qualified First

You need three things in order for your vehicle to qualify for pawning. First, your car must not be under any mortgage plans, and it must be fully paid or owned. Second, in case the vehicle is not yet fully paid, it must be paid at least a certain percentage of its selling price or its fair market value. This would depend on the initial down payment the owner made, and it’s usually one of the mechanics found in car loan programs. Third, in case the car to be pawned is secondhand, it must be fully paid or owned. However, it can still be pawned even if it’s not yet in the name of the current owner. In this case, though, additional documents may be required.

Get All the Necessary Documents

Documentary requirements for car pawn shops vary to a certain degree. However, most of the paperwork they’ll need from you are generally the same. These include the latest copy of your car’s OR and CR, at least two valid IDs, your most recent proof of billing, your Tax Identification Number (TIN), and a documented source of your income. But to make sure you have all the necessary files and documents, better visit the pawn shop where you’re planning to trade your vehicle and ask them yourself.

Proceed to Pawning Your Car

Once you’re certain that you and your car is qualified, and once you have all the vital files and documents in order, you can proceed to going to your preferred pawn shop and trading your car for cash. Now while most applications get approved, you can still increase your chances by meeting a few criteria. These include having a high credit score, having a stable job with a steady income, and having an active bank account, among others. Though it’s not always the case, these factors are known to accelerate pawn and loan approvals.

The Takeaway

Through pawn shops, Pinoys can temporarily trade their vehicles (be they cars, vans, or trucks) for urgent cash. So if you find yourself in dire need of monetary assistance and you have an extra automobile lying around unused, you now know where to go.

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