A Car Pledge is a loan facility offered by lenders, which enables borrowers to pledge their car as collateral. The money thus pledged serves as the down payment for the loan. If the borrower defaults on his repayments, the lender repossesses the pledged vehicle. The borrower can thus avail himself of a longer repayment period and get a cheaper interest rate. The only drawback is that the car ownership stays with the lender until the full amount of the loan is repaid.
There are two types of car-pledges available to borrowers. One is secured car-pledge, the other unsecured. In a secured car-pledge, the borrower pledges the security, which could be any property. For availing this facility, the borrower must provide a valid bank statement. The lender will assess the value of the collateral and if it is high enough, the lender may approve the loan.
This kind of a pledge is called a priority right. Since it is backed by real property, the lender has the priority right to auction the vehicle in case of default. If the lender fails to do so, then the property pledged as security will be sold off. In order to secure the priority right, the borrower must repay the loan early. This leads to a chain reaction: The more the borrower delays repaying the loan, the higher is the risk to the lender and the higher the price he will have to charge for repossessing the vehicle.
Another type of car-pledge is a speed limit car-pledge จำนำรถยนต์. In this form of a pledge, the loan is given on the basis of how fast the borrower can make the car use. Thus, a borrower can pledge his car to pay for the same in exchange for a lowered interest rate. The speed limit varies from lender to lender. Thus, it is important to check the rate and conditions before availing this kind of a pledge.
In a speed-limit car-pledge, the lender requires that borrowers meet certain percentage points of completion of the project. This percentage depends on the lender, ask each lender may set a different completion target. As such, the borrower must choose the lender that will be most compatible with him. This allows the lender to decide the appropriate period of time for repayment. For instance, if the project takes six months to complete, the borrower can make regular monthly payments towards the cost of the vehicle without having to worry about meeting the lender’s deadline.
Perhaps the most common car-pledge is one that involves electric vehicles. There are two types of electric car pledges: open and closed-end. In the open-end option, a borrower can pledge the entire value of the vehicle while at the same time allowing the manufacturer to determine the price that would be paid for the vehicle. This option allows the manufacturer to charge higher prices for the next vehicle once the open-end commitment has been fulfilled.
The closed-end option includes various restrictions for the car registration book. First, a buyer cannot purchase a pledged car without first fulfilling all legal obligations. Next, a buyer is restricted to purchasing one car under the program for a specific period of time. Finally, a seller can opt to require a down payment or higher finance charges for someone who decides to purchase through the program.
A person who has successfully completed a car pledge program can rest assured that he is on the right path to owning his very own motorcycle. It also allows the borrower to get used to how buying a car works, making it easier for the borrower to understand what to expect when buying a motorcycle in the future. All in all, getting pre-approved for a car pledge allows the borrower to save a significant amount of money. In exchange for this significant amount of money, however, the borrower must complete a car registration form, indicating that he is offering the vehicle for sale. This is a legal requirement, and failure to comply could result in stiff penalties.