When we acquire a good this becomes an investment immediately. A car is a good investment that, if needed, can become a quick source of money. This may be due to the rental of the vehicle, the sale or the commitment. However, it is quite difficult to determine what is the best way to obtain the benefits of this good without getting hurt.
I need money, Sell or pledge?
Regardless of the emergency that may arise should be taken into account future consequences with respect to the sale or commitment of a good. That is why it is important to analyze both scenarios well and decide what is best for the economic need we present and for the future of our vehicle.
Remember that selling it involves dispensing with the vehicle forever, and there may not be a new opportunity to acquire another one in the short to medium term. And pawning implies giving the car as collateral to a pawn company which gives you the option of recovering it when you cancel the amount plus your interest.
Advantages and disadvantages of pawning your car
The endeavor is the delivery of a good of its own in order to obtain a benefit quickly. Mostly the benefit is monetary, but this loan has an increase in percentage that you must cancel every so often. For when you want it and have the money back, you can return your good given as a guarantee.
The commitment of your car has benefits and these focus on:
- You get money quickly.
- The car will be well taken care of.
- Few requirements are required.
- Once the amount has been paid and the interest paid, you have your car back to continue using it.
But like all pawn your car also has disadvantages, which you must take into account when deciding to go to a company in charge of pawning articles or own goods. The disadvantages are:
- Interest always exceeds the amount borrowed.
- The loan for the endeavor can be transformed into a debt.
- You can lose good if you cannot cancel on time.
Advantages and disadvantages of selling your car
When you decide to liquidate or sell a good in this case your car, it must be done with some interest in between, be it an investment, a new acquisition or emergency cases. Otherwise it is suggested not to make the sale since the value of it will be increased as well as your profits.
At the moment of taking some economic action, the pros and cons of the negotiation must be evaluated; that is why analyzing the case it follows that the advantages of selling your car are:
- It sold quickly.
- The cost of your car is handled by you as well as the negotiation.
- You recover a little more of the value invested at the time you purchased it.
- You get money quickly.
One of the main ideas in the acquisition of a good is that it is active money in your hands, at the time of selling it you will always get back the value spent. However, this also has its disadvantages which are:
- If you acquired it again you will not be able to recover the value since you will sell it as used.
- The more details the used car will lower the value and cost in going out for sale (you must take care of it).
- You must specify well if you have faults or details otherwise you can ask for a refund and it is an annoying and disappointing process; especially when you have an economic urgency.
Reasons to pawn or sell your car
Pawn or sell your car should always be given or decided for reasons of great importance because it is a great asset. If the car is preserved and cared for, it can be revalued, but if it is sold for no specific reason, the money is usually consumed in unimportant ends and the investment disappears. The various reasons to sell your car are:
- Reason for travel
- Family or medical emergencies
- Acquisition of a new car or good
It is very important to know how to manage our assets and know their true value so you do not make hasty decisions. Having an investment asset is especially useful in cases of emergencies or negotiations that can provide you with long or short term gains.
How to pawn your car?
When making the decision that an endeavor is the best option to obtain the money you need without leaving the whole of the good that you have, what you have to take into account are the following steps.
- You should mainly inquire about the cost of your car.
- Investigate the pawnshops, see the reliability of each and if you have recommendations of the same much better.
- Find out the interest rates offered by each of these companies and the amount they can give in exchange for your car.
- Another element that should be taken into account is the commitment to pay interest to be canceled. You should know how much you can cover, because if you do not make the corresponding payments they will accumulate and you can end up losing more than you won, and if the deadline passes you can lose your car.
- It is necessary that you have all the documents of your car in order and up to date.
- The term indicated for the payment of the interest imposed by the pawn vary according to the amount that has been assigned to you. And of course the rules and policies of the pawnshop you decided to offer your car as a guarantee of payment to the money obtained.
Taking into account everything discussed, we can say that selling or pawning your car gives you similar results; You can quickly get the money you need. But the consequences can be diverse; since in the case of the purchase you would lose your asset and in the case of pawning it you have the possibility of recovering it if you pay interest in an adequate manner.