What procedures are required for pawning a car?
3 Answers
To pawn a car, the owner needs to bring their ID card, vehicle license, purchase invoice, insurance policy, and all other documents required for driving the car on the road. Introduction to Car Pawning: Car pawning, also known as motor vehicle pawning, refers to a type of pawn business where a motor vehicle is used as collateral for a loan. The owner of the motor vehicle delivers the vehicle and its accompanying documents to the pawnshop, pays a certain percentage of fees, obtains the pawn loan, and then pays the interest on the loan, repays the principal, and redeems the car within the agreed period. Scope of Car Pawning: Motor vehicle pawning falls under the category of movable property pawning. In principle, both batch new cars from 4S shops and licensed private mid-to-high-end cars can be pawned. This includes: family cars, business cars, trucks, buses, engineering vehicles, etc. The pawnshop introduced car pawning services in 2003, pioneering the real estate pawning industry in the pawn sector.
When I wanted to pawn my car, I found the procedure quite simple but time-consuming. First, I had to prepare the original and photocopy of my ID card, the vehicle registration certificate, the driving license, and the vehicle insurance policy, as well as bring the car purchase invoice to prove the car's origin. At the pawnshop, they would have a professional mechanic inspect the car's condition, especially checking the engine and exterior for any signs of major repairs. Afterwards, both parties would negotiate the loan amount and the pawn period. After signing the pawn contract, the mortgage registration process would be completed. The entire process takes about two to three days, and they would keep the car but not the keys, which is a bit inconvenient. What worries me the most is the interest calculation method—the monthly interest should not exceed 3%, and it's best not to extend the repayment period beyond six months.
Pawning a car mainly involves three steps: document preparation, vehicle appraisal, and signing the mortgage contract. All required documents must be complete, including ID card, vehicle ownership certificate, and vehicle license. If the car was purchased with a loan, you must first obtain the bank's mortgage release certificate. The appraisal stage is most critical—the pawnshop will conduct a thorough inspection of the vehicle's condition and provide a valuation far below the market price. When signing the pawn contract, pay close attention to three key points: the loan term is typically 1-6 months, the monthly fee rate does not exceed 3% of the principal, and the vehicle may be sold if overdue for more than 10 days. A reminder: remember to complete the mortgage registration change, otherwise, you may have to compensate if the car is driven away. Avoid small pawnshops—licensed institutions offer much more transparent services.
