Pfando review: Experience with the cash-for-car-title provider
Pfando stands out as Germany’s market leader in Sale-and-Rent-Back or “Cash & Drive” models, where you can pawn your car yet continue to drive it. With more than 30 locations across Germany, a company history spanning over 10 years, and high-profile advertising figures like Lothar Matthäus, Pfando has become well-known nationwide.
But how exactly does Pfando work? What requirements must the vehicle and its owner meet? What are the costs involved? And what should you pay attention to in any pawn or continue driving contract?
Today, we’ll show you what you need to know and share the experiences we’ve gathered with Pfando.
Pfando review and test results
Pfando at a glance
| Loan amount | 500,00 € - 200.000,00 € |
| Duration | 1 - 120 month(s) |
| Specialties |
|
| Requirements |
|
- 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
What is Pfando and how do they work?
Pfando offers a quick solution for those in need of immediate cash without wanting—or being able—to take out a traditional loan. It provides cash in exchange for your car while allowing you to continue driving it, without the need for a SCHUFA check or proof of income. Essentially, it’s “cash with fewer questions asked.”
Pfando presents two options for customers: the classic pawn loan (also known as a pawn credit) and the continue driving option. Pfando specializes in the continue driving option, known under various terms:
- Cash-for-Car-Title
- Sale-and-Rent-Back
- Sale-and-Lease-Back
- Pawn your car and continue driving
- Pawn your vehicle title
- Cash-and-Drive
These terms all refer to the same service, even though there might be minor differences. However, it’s important to understand that Pfando’s service is not a loan or credit in the traditional sense, nor is it a classic pawn where the car is stored by the pawnbroker for the duration of the loan. Instead, the car becomes the property of the lender (Pfando) and is then rented back to you.
How does Pfando work? Requirements
You can inquire at Pfando with any type of vehicle. This includes private cars, company vehicles, classic cars, motorcycles, as well as commercial vehicles like vans, trucks, or agricultural equipment. The vehicle must have a market value of at least €3,500, and you must be the owner. Additionally, the vehicle needs to be registered and insured.
If these conditions are met, you can ask for an estimate over the phone or directly at a branch. The following checklist will help you assess your situation:
- Vehicle market value over €3,500
- Car is registered and insured
- Vehicle title and registration certificate are available
- ID card or passport (possibly with registration certificate) are current
- Driving license is available
Tipp: Find out what your car is worth (ADAC)
If you’re unsure about your car’s current value, you can easily calculate its market value using a used car calculator. This way, you’ll know if Pfando is a viable option for you, and you’ll have a good benchmark to assess whether Pfando’s appraisal is fair. (In German)
From online application to cash: The process explained
The process at Pfando is straightforward and can be initiated by placing a non-binding and free inquiry on Pfando.de. Shortly after, a Pfando representative will contact you by phone, or you can schedule an appointment at a nearby branch.
For an accurate appraisal of your car, you’ll need to provide details about the vehicle, including:
- Manufacturer and model
- Date of first registration and mileage
- Any previous accidents or damage
- Type of insurance (liability, partial coverage, comprehensive coverage)
- Availability of a service book (maintenance record)
Upon arrival at a Pfando branch, a staff member will explain the “Continue Driving Model” to you. Additionally, an appraiser will examine the car and create a report estimating the car’s value and the maximum payout amount. This forms the basis for the “Continue Driving Contract” (Sale & Rent Back), which actually comprises two agreements: a “Sales Contract for a Used Motor Vehicle” (“Sale”) and a “Rental Agreement for a Used Motor Vehicle” (“Rent”).
Video explanation
These contracts outline the car’s value, the purchase price (the amount Pfando pays you), the duration of the rental period (how long you want to rent the car back), and the calculated rent, which may be higher than the actual rent you pay monthly to Pfando.
If you decide to sign the contract(s), the next step is to hand over the vehicle title (registration certificate part II) and the spare key to Pfando. Then, Pfando pays you the agreed sum, and you can drive your car back home.
Cost and fees: So how much does Pfando actually cost?
Pfando is more expensive than a bank loan. However, it doesn’t require a SCHUFA check or income verification, and you can continue to use your car.
With this preliminary information, we present some cost examples from Pfando customers, from which one can calculate the monthly costs. Then, we compare these costs to those of a classic pawn loan, where you also receive cash but have to give up the car.
3 Cost Examples from Pfando
| Car | Vehicle Value | Cash Payout | Monthly Rate | Term |
|---|---|---|---|---|
| Peugeot 208 | €4,000 | €2,500 | €297 | 6 Months |
| 5er BMW | €8,000 | €4,700 | €450 | 12 Months |
| Seat Ibiza | €8,000 | €3,400 | €340 | Unknown |
| Mercedes Vito | €12,000 (Estimated) | €7,500 | €637.50 | 6 Months |
Comparison with Classic Pawn Loan Without Continue Driving Contract
To put the costs into perspective, we compare them to those of a classic pawn loan. In classic pawn loans, fees are regulated by law according to the Pawnbroker Regulation, making them easy to calculate. For a car valued up to €10,000:
- 1% interest per month
- Monthly pawn fee of 3.5%
€75, we calculate the following monthly costs for the Peugeot 208 example in a classic pawn loan:
Calculation Example for a Classic Pawn Loan
| Car | Vehicle Value | Interest + Pawn Fee + Storage Fee | Difference to Sale-and-Rent-Back | Term |
|---|---|---|---|---|
| Peugeot 208 | €4,000 | €255 | €42 | 6 Months |
Therefore, over 6 months, you pay €1,530 with a classic pawn loan compared to €1,782 with Sale and Rent Back, which is €252 or €42 per month less. If you cannot do without your car, finding a leasing option for €42 per month is unlikely. Thus, Pfando is a viable option when the car is indispensable, despite being more expensive than pawn loans.
However, it’s important to note that in this example, the car is sold and can only be bought back after the rental period ends. With a pawn loan, you only need to repay the pawn amount of €1,530 to retrieve your car.
If you fall behind on your rent payments with Pfando, the company will use the spare key provided to secure the car—sometimes even with police assistance.
Where are Pfando shops? Over 30 locations in Germany
What can I get money for?
You can pawn a wide range of vehicles at Pfando, not just cars or passenger vehicles. This can be particularly appealing for self-employed individuals, freelancers, companies, businesses, or farmers. Pfando accepts inquiries for the following vehicles:
Vehicles and Vehicle Titles You Can Pawn:
- Sedan,
- Compact Car,
- Station Wagon,
- Van/Minibus,
- SUV/Off-road Vehicle,
- Convertible/Roadster,
- Sports Car/Coupe,
- Passenger Car,
- Truck over 7.5T,
- Motorcycle,
- Construction Vehicle,
- Truck up to 7.5T,
- Caravan,
- Airplane,
- Boat,
- Motorhome
Is Pfando Reputable? Our Experience and Review
Yes, in our opinion, Pfando is reputable. Over 40,000 customers, 30 branches, and a company history of 10 years should speak for themselves. However, Pfando often faces criticism because the monthly costs are higher than those of a standard loan.
This criticism is valid, but in our view, it often comes from businesses and individuals who have never had issues with SCHUFA. For many, Pfando is the only solution when facing urgent financial issues and poor SCHUFA ratings, or when lacking proof of income.
Online research yields far more positive experiences with Pfando than critical ones. As of July 2022, Pfando has a rating of 4.8 out of 5 stars from 300 reviews on Google. On Trustpilot, Pfando has 3,806 reviews as of May 2021, with an average rating of 4.9 out of 5 stars. Only 21 reviews are 1-star ratings.
Vorteile
- No SCHUFA check, no proof of income required
- Quick payout
- You can continue driving your vehicle
- Passenger cars, motorcycles, company cars, vans, and more can be pawned
- Tax advantages for self-employed, businesses
Nachteile
- High costs, more expensive than a loan
- Must be finalized in a branch (not 100% online)
- Vehicle must be worth at least €3,500
- Legally, the vehicle is sold and then rented back, so it’s neither a pawn loan nor a credit
- In case of non-payment, the vehicle is lost
Contacting Pfando: Phone, Whatsapp, Mail
| Company name | Pfando cash & drive GmbH |
| Company type | Pfandleiher |
| Address | Hohenzollerndamm 184, 10713 Berlin |
| Website | pfando.de/ |
| Phone | 030 8877 3667 |
| 0160 622 6767 | |
| Hours | Monday - Friday, 08:00 - 22:00, Saturday - Sunday, 09:00 - 18:00 |
| Social Media |
Instagram |
| English support | No |
