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Fragen & AntworenGet money for your car - just pawn it and keep driving
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WHAT IS A CAR PAWN?
If you want to use your car as collateral for a loan, car pawn is a quick way for you to get money. Your car is used as collateral for the money you have borrowed. When you repay the loan, you get your car back.
Good to know: In Austria, you can simply continue to drive your car for the entire term.
WHAT REQUIREMENTS DO I HAVE TO MEET TO GET A CAR LOAN?
To obtain a car loan, you must own a car that is neither leased nor financed by the bank. In addition, it should generally not be older than 12 years. Exceptions to this are classic cars or very high-quality car models.
Can I get a car loan without proof of income and a credit check?
For amounts in the low 4-digit range, no proof of earnings is normally required from pawnbrokers. For higher amounts, proof of salary may be required.
In principle, there is no credit check. However, pawnshops usually ask whether your car has already been pawned.
HOW DO I PROCESS MY CAR LOAN?
Valuation of your car: First, the pawn shop will value your car to determine its value. With online pawn shops such as CASHY, you can also find out the possible pawn loan amount for your car online on the website. Simply enter your vehicle details in the form.
Checking your car: With an online offer, you first make an appointment at the pawnshop. Your car will be checked at the pawn shop - and if you agree with the loan amount offered, the contract can be signed.
Do I always need an appointment to take out a car loan?
This varies depending on the provider. With CASHY, for example, you can request a quote online and arrange a callback. You need an appointment to get a car loan.
Handing over the documents: To get your car loan, you must bring the following documents with you for verification:
Vehicle registration document
Registration certificate part I+II
Valid §57a sticker (Pickerl)
Duplicate key
Purchase contract
Confirmation of registration
Official photo ID
Payout: Depending on the provider, you will usually receive your money in cash, but you can also choose other payment methods. Pawn shops like CASHY also allow you to pay out to your bank account or PayPal account. You can usually take out your pawn loan for 1, 2 or 3 months.
Repayment: At the end of your term, at least the fees are due. You can repay your pawn loan including fees, but you can also extend it. If you only pay a partial amount, your fees will also be reduced. The pawnshop's lien expires when you have repaid your pawn loan in full.
Is the car still mine if I take out a pawn loan?
Yes, the car remains in your possession, but the pawnshop has the right of lien. If you are unable to repay your loan, your car will be auctioned off to pay off your debts.
HOW MUCH DOES A CAR LOAN COST? WHERE CAN I FIND AN EXAMPLE OF FEES?
The costs for a pawn loan in Austria are made up of various fees. Below you will find an example of the fees charged by CASHY. You can also find a transparent fee schedule on the pawn shop's website.
In our example, we show you how high the fees are for a €1,000 car loan for 1 month with continued use of your car:
DESCRIPTION | AMOUNTS |
|---|---|
Pawn loan amount | €1.000,- |
issuance fee | €12,- |
interest | €20,- |
Manipulation fee (for continued use) | €40 |
Total fees | €72,- |
WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF CAR LOANS?
If you can use your car as collateral for a loan, there are various points you should consider when making your decision. Car pawn loans are particularly suitable for short-term bridging.
ADVANTAGES | DISADVANTAGES |
|---|---|
You get money quickly. | The costs are higher compared to a bank loan. |
You often don't need a good credit rating. | If you have to extend the loan often, higher debts can accumulate. |
You can often decide for yourself which term you choose. | Additional costs are incurred for further use or storage. |
The process is very simple. | If you fail to repay, you will lose your car. |
You can continue to use your car during the term. | If you sell your car at auction, you won't get the market value. |
WHAT ARE THE RISKS IF I WANT TO PAWN MY CAR?
You should make sure that you take out your car loan with a reputable provider. You can recognize trustworthy providers, for example, by the seal of approval of the Austrian Federal Economic Chamber. This shows you that a pawn shop meets specified quality standards. This also means that the fees are displayed transparently.
Car pawn loans are particularly suitable for short-term bridging. If you can't afford to repay your pawn loan, you could lose your vehicle. Unlike with a classic pawn loan, there may also be a shortfall in cover. This means that the sale of your car does not cover the value of your pawn loan.
WHAT HAPPENS IF I CAN'T REPAY MY CAR LOAN?
If you are unable to repay your car loan, you have the option of extending the term again. This means that the entire loan amount is not due. You continue to pay the agreed interest on your pawn loan and you have the option of repaying your loan at a later date.
If you are also unable to extend your car loan, the car will be auctioned off in your best interest. If the sale price is equal to the amount of your loan, your debt is settled. If your car is auctioned for a lower amount, you will have to pay the difference.
You should therefore only take out a car loan if you are sure that you will be able to repay the loan amount after 1-3 months.
Can I also reduce my car loan?
Yes, you can repay partial amounts of your car loan at any time. This will of course also reduce the additional fees for the following months.
FREQUENT QUESTIONS
Will I receive cash immediately?
Yes, you will usually receive cash immediately. A transfer to your PayPal or bank account is also usually very quick.
How quickly can I get a car loan? Is the process easy?
You can usually pawn your car on the same day and get the money paid out immediately. The process is very simple and straightforward.
Is it possible to get a car loan without proof of creditworthiness and income?
Yes, this is possible. However, for higher pawn loans with continued use, regular salary receipts may be required as additional collateral.
What does the Chamber of Commerce's seal of approval for pawnbrokers mean?
The seal of approval shows that the pawnshop meets certain quality standards.
What term is possible for my car loan?
You take out your pawn loan for 1-3 months, but you can also extend it again at the end of the term.
Does the car have to stay in the pawn shop?
No, you can continue to drive your car if you wish. However, the fees for your pawn loan will be higher.
Can I also pawn a classic car?
Yes, this is possible in most cases.
Where can I get an anonymous instant quote for my car loan online?
On CASHY.at you can enter the details of your car directly into a form. You will immediately see online how much money you can borrow for your car.