Get a loan with your car’s title in Germany
If you have a car and you require quick cash, then you can use your car’s title to receive instant cash payouts. Yes, this even works in bureaucratic Germany! We know that many foreigners or self-employed have issues obtaining a proper personal loan in Germany, as banks have very high standards and generally require you to live here full-time. However, with cash loans for your car title you can easily get around this issue because your creditworthiness is not checked, as the car acts as collateral for the cash.
We’re going to show you know what you should know, how it works and where you can apply for the cash online right away
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Car title loan online: How it works
- Use your car’s title as collateral
- Starting from 500 Euros payout
- No credit check, payslip or similar required
- Works with personal or business cars. You can even collateralize your company’s car pool or transporters
- Payout is instant, either in cash or via wire transfer
How pawn shops and cash for car providers work in Germany
Auto pawn shops have evolved from the traditional pawn shops we used to know. Nowadays, there are additional options allowing you to take your car back with you. Essentially, you can get cash for your car and keep the car for your daily use. Let’s break down the two main models: Classic Auto Pawn Shops and the “Sale-and-Rent-Back” model:
- Classic Auto Pawn Shop – The car stays with the pawn shop (“Pawn Loan” or “Pawnbroker”): You drive your car to the pawn shop, where an appraiser evaluates the car’s value based on its current condition, mileage, year, make, and cleanliness. Naturally, the car type matters too, as a high-end SUV or convertible is usually worth more than a compact car. The appraiser determines the “pawn value,” which is the maximum amount the auto pawn shop can offer you.
The issue with classic auto pawn shops is that once the car is pawned, it stays with the dealer for storage, and you can’t use it anymore. This is the traditional auto pawn loan.
- Auto Pawn Shop: Pawn your car, continue driving, and get cash (“Sale and Rent Back”): A more convenient alternative is the Cash&Drive model, similar to an auto pawn shop but with a significant difference: you can pawn your car, then continue to use and drive it. This is known as “Sale-and-Lease-Back,” which translates to “Sell and lease it back” in English. Unlike in the classic auto pawn shop model, where taking the car with you is not legally allowed, the Sale and Lease Back model lets you take the car right after pawning it. This is beneficial for many consumers who need their vehicle to get to work.
This modern “Cash and Drive” model is simpler than traditional car pawnbroking since you don’t have to give up your car.
Germany’s #1 provider: Pfando Cash and Drive
If you want to pawn your car or keep it, but receive cash for the title, we recommend you to check out Pfando Cash & Drive. Pfando uses both the pawn shop or the cash-and-drive model and thus allows you to keep your vehicle, if you wish to do so. We’ve done an in-depth review of Pfando’s services, which you can read here, or go right away to their offer:
- Receive cash for your car title without a credit or SCHUFA check
- Receive €500 – €250,000, starting from 1 month duration
- Car, company vehicle, motorcycle, van, and much more possible
- Not as cheap as a loan, but easier to obtain
Pfando is also behind Mobility Finance which is specialized for companies trying to liquidate fixed assets such as cars, transporters, tractors or even boats and airplanes. Mobility Finance is much more business focussed and starts with sums over 250.000 Euro up to several million in cash.
How does Pfando operate?
Pfando operates as a convenient option for using your car as collateral for a loan while continuing to drive it. Here’s how the process works
- Initial Online Application: It’s beneficial to first apply for the auto pawn online and schedule an appointment at a branch near you (such as in Frankfurt, Hamburg, Dortmund, or wherever a Pfando branch is located). Initially, you’ll need to answer some questions about your car, such as its year of manufacture, mileage, brand, and whether it has been involved in any accidents (i.e., if it’s a salvage title vehicle).
- In-Branch Appraisal: Once you’re at the branch with your car, a professional appraisal is conducted by a specially trained employee. This appraisal forms the basis for an offer, meaning the pawn value or loan amount against your car. If you accept the offer under the given terms, the final paperwork is arranged, you receive the cash, and you can continue driving your car. The service prides itself on flexibility and mobility without hidden costs.
Checklist for your cash-for-car-title with Pfando
Requirements at Pfando: Car’s residual value, documents, keys To use Pfando’s services, you and your car must meet certain minimum requirements for a smooth and quick process. Essentially, you should have the following documents ready when you visit one of the branches:
- Vehicle Title / Registration Certificate: For the car you intend to pawn.
- Ownership Proof: The car must be owned outright (not leased. If financed, at least 50% of the car loan must be paid off).
- Vehicle Registration Document.
- Spare Key.
- Car Value: The car should have a minimum market value of €2,500.
- ID Card or Passport.
This streamlined process is designed to ensure that borrowers can quickly obtain the funds they need without sacrificing the use of their vehicle, aligning with the needs of individuals who require immediate financial solutions without the inconvenience of losing mobility.
Frequently asked questions
When visiting the pawn shop, you must bring all relevant documents. This includes: vehicle registration and title, an identification document (ID card or passport), and the car’s spare keys.
Your car must also have a minimum value, which is typically around €2,500. If you are not the owner of the car or if the car has a low value, it will be difficult to pawn the vehicle. Business customers also have the option to pawn their fleet and continue driving to bridge financing gaps.
If you bring all the documents to the pawn shop branch immediately, you typically receive the money the same day, thus within 24 hours. Most pawn shops are also open on Sundays and public holidays if you need to get cash quickly.
The costs vary from pawn shop to pawn shop. On average, you should expect interest rates in the double digits, especially if you take the vehicle back immediately and continue driving.
We have compiled some examples of costs in our Pfando test report.
Yes, both the vehicle title (the “proof of ownership” of the vehicle) and the vehicle registration are necessary and must be submitted. Furthermore, identification documents are important to identify yourself as the owner of the car.
Yes, a pawn loan and an auto pawn shop are good alternatives to a loan without SCHUFA, as the creditworthiness is assessed based on the car, and not, as with most banks, based on your own SCHUFA record. This means that alternatively to a loan, you can also pawn your car to solve financial bottlenecks.
The concept of an auto pawn shop is straightforward: You own a vehicle and need cash but don’t want to take out a loan? Then you bring your car to an auto pawn shop. There, a professional appraiser will estimate and evaluate the car.
You then receive an offer for your car, indicating the amount you can get. If you accept the offer, the car is pawned. However, with the Sale-and-Rent-Back model, you can even take the car back immediately and continue driving without having to give it up.
