Car pawnshop secured by PTS: our review of the service

If you urgently need money, you can get it in various ways. Today in Moscow and other cities of Russia there are a lot of pawnshops where you can get a loan secured by various things - household appliances, jewelry, mobile phones. But if you need a large enough amount - up to a million or more, then you can use the services of an auto pawnshop by pawning your vehicle.

Please note that many pawnshops offer a cash loan secured by title. The advantages in this case are obvious: you get the money in your hands, while using the car, as before. Is it beneficial? Let's try to deal with this issue on our autoportal for motorists Vodi.su.

Terms

So, if you urgently need money, but you don’t want to part with the car, you can sign an agreement with a pawnshop for a period of a month to two years and get your hands on an amount that will be 40-50 percent lower than the real market value of your car.

How to take advantage of this offer?

First of all, you need to find an auto pawnshop - this should not be a problem: enter the appropriate request into Google or Yandex and a lot of links will open in front of you.

The conditions are almost the same everywhere:

• call the managers of the organization, or fill out a standard form on the site;
• indicate the data of your car - model, brand, year of production, mileage, engine size, and so on;
• You will be informed about the amount and interest rate in advance;
• you come to the specified address or they come to you, evaluate the car, go to the pawnshop together, sign the contract and get cash in your hands.

Everything is easy and simple, but this is only at first glance.

Take a closer look at the terms of the contract and you will see the following:

• No one will pay you the real amount for the car. If you use the “Loan secured by TCP” service, then the maximum that you will receive is 50-60 percent of the cost;
• the interest rate is quite high - 6-15 percent per month. In some pawnshops, they specifically write by day - 0,3-0,5 percent per day. If you take a loan for a longer period, then the rate can be reduced to 0,2 (6% per month is the lowest rate we could find);
• they do not accept any cars, but only those that, in case of non-payment, will be able to sell, that is, domestic cars no older than 5-8 years, foreign cars no older than 10 years.

It is clear that it makes sense to use such an offer only in cases where money is desperately needed, and in other places they do not give you it. Take a calculator and calculate (the interest is calculated in such a way that the shorter the term you borrow, the higher the rate) - 6 percent per year, the overpayment is 72%, it is considered for the balance, but still a lot.

By the way, the conditions in banks are more loyal, and they also offer a loan secured by the TCP:

• Renaissance Credit - 28% per annum;
• Moscow Credit Bank - 25;
• BystroBank - 30-35;
• Bank of Moscow - 19,5-25.

True, in a bank secured by TCP, they may require CASCO insurance, because they want to be sure that in the event of an accident, the client will be able to pay off his obligations. Also, banks have a more complicated procedure for obtaining a loan. If the car pawnshop will give you money literally in an hour, without requiring any additional certificates and documents, then bank employees will ask you to bring a certificate from work about wages, the consent of relatives / spouse / wife. And even under such conditions, it can take them up to three days to make a decision.

But the bank has another indisputable plus - you will receive not 50-60 percent, but 70-90% in your hands.

Thus, it is up to you to decide which is more profitable.

Documents and registration

If the conditions suit you and you want to receive money at a pawnshop, then you need to present the following documents:

• your civil passport;
• any other identity document - driver's license, military ID, identification code, pension, compulsory medical insurance policy;
• registration certificate - PTS (remains in the pawnshop);
• vehicle registration certificate.

In this case, your age must be 20-65 years old, and the car is registered in your name. If you brought a car from abroad, then it must go through customs clearance in accordance with the law.

After receiving the entire amount in your hands, you only have to pay the money regularly within the specified period. It should be noted that many pawnshops treat customers more loyally than banks. For example, you pawned your car for six months, received 500 thousand in your hands. A simple calculation shows that the overpayment will be approximately 150-200 thousand, that is, the pawnshop will need to return 700 thousand. If you can’t cope and can’t pay the interest one of the months, then they will meet you and extend the loan term for another couple of months, and the amount of the overpayment will increase accordingly.

Well, if serious changes occur in your life and you lose your ability to pay, then the car will be confiscated, it will be put up for sale, and the difference will be returned to you. In principle, in many pawnshops, customers are given the opportunity to think whether he will return the money, or be satisfied with half the cost, but at the same time the car will become the property of the pawnshop.

Conclusions

Thus, summing up all of the above, we can list the advantages of obtaining a loan at a pawnshop secured by Title:

• speed - the decision is made in an hour;
• no need to bring a lot of documents and certificates;
• in a pawnshop they will not pay attention to your place of residence and income level.

Indeed, the bank may refuse a loan to people with low incomes or those registered in regions where there are no bank branches.

But the disadvantages are also significant in the pawnshop:

• they accept only running models of cars that can be sold without problems;
• give out only 50-60% of the cost;
• high interest rates.

After analyzing all these data, we come to the conclusion that a pawnshop is profitable only if the loan is taken for a short period of time - a month or two, you have full confidence that you can return the money on time.

If you are not going to buy back the TCP, then in this case it is much more profitable to sell your car through ads - you will receive the entire amount, and not 50-60%.

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