Factors Affecting The Borrowing Limit of Napanee Auto Pawn Loans - Instant Loans Canada

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Factors Affecting The Borrowing Limit of Napanee Auto Pawn Loans

May 07, 2014

Before you can start applying for auto pawn loans in Napanee, you must know the factors affecting the borrowing limit of these loans. The amount of auto pawn loans granted per borrower varies. This is because there are dynamics that come into play such as mileage, age of the car, purchase price of the vehicle, and the type of auto lending company. All these factors affect how much your auto pawn loan borrowing limit will be. Thus, knowing how they can affect your loan is very important.

  • Mileage. Almost all Napanee auto pawn loans are granted only after the inspector checks the mileage of the vehicle collateral. Lenders would want to ensure that the collateral is spic and span and the mileage of the vehicle is one of the factors they look into when it comes to this. The bigger the mileage is the lower the amount of auto pawn loan you can borrow. This is why you must not expect to be allowed to borrow the maximum amount if your car’s mileage is too big.
  • Age of the car. The age of the car not only dictates auto pawn loans’ borrowing limit. It also affects whether or not you will be allow to borrow cash against  your such vehicle. In Instant Loans Canada, for example, only cars aging less than eight (8) years old can be used as collateral for Napanee auto pawn loans. If your car is less than 8 years old, you are lucky as you can bring this to Instant Loans Canada for inspection. However, if it is beyond 8 years old, you might want to visit other lending companies or start to accept that you really cannot borrow against your vehicle.
  • Purchase price of your vehicle. The amount of auto pawn loans depends mainly on the value of the car collateral. It usually is 30% to 50% of your vehicle’s purchase price. Hence, if you bought your vehicle for $50,000, the maximum amount that you can borrow would be $25,000. Knowing this is significant as it allows you to estimate how much cash you can benefit from auto pawn loans in Napanee.
  • Type of Lending Company. Another factor affecting the borrowing limit of auto pawn loans is the type of lending company you are applying loans for. Although there are lending institutions that won’t give your stringent requirements for loan approval because they totally understand your financial situation, there are a lot of companies who are very strict with their borrowers. They would want to make sure they are dealing with reputable borrowers. Most often than not, they grant loans only to borrowers who can give good collateral and can prove through other documents their repaying capacity. Furthermore, there are lending companies that offer lesser borrowing limit on auto pawn loans than others for the same vehicle. For this reason, you must do your research first and compare your lending company options before hitting the auto pawn loans sack.