If there is not enough money to pay for new purchases or necessary repairs, it is very easy for most to overdraw the account and use the overdraft facility provided by the bank. Many know that this loan is particularly expensive. The interest only accrues for the money used, but is considerably higher than with a normal installment loan. Are cheaper in any case Installment loans at the bank. But there are also other ways to get the urgently needed money.
Pfandkredit provides short-term liquidity
A financial bottleneck happened quickly. For most, it is not that easy to get the money quickly and at a reasonable price. A pawnbroker can be the solution here. Customers hand in an item of value there, for example an old, valuable piece of jewelry, a high-quality musical instrument, a coin collection or a gold bar. It is important that the item represents a value for which the pawnbroker gives money. First of all, the pawnbroker examines the item very carefully and offers part of the value as a deposit. The customer receives the money, the pawnbroker keeps the deposit and stores it for an agreed period of time. If the customer does not come to redeem the deposit by the deadline at the latest, the pawnbroker can use it.
The car as a valuable asset?
However, many do not have an expensive watch, no family jewelry and no other valuable objects for which a pawnbroker would give enough money. The only asset is the car. Bringing the car to the car pawnbroker is, however, not an option in most cases. The financial problem would be solved quickly, but that would create a mobility problem. Anyone who depends on their car to get to work with it or because they need it as a self-employed craftsman, taxi driver or delivery service cannot leave their car in the hall at the pawnbroker's. A new alternative has been established here: the Cash & Drive concept from Pfando. Customers sell their car to the company and rent it back, so they can continue to use it for a fee. After the cash has been paid out, the vehicle remains available to the customer.
What is sale-and-lease-back?
With sale-and-lease-back, those affected, for whom money is currently poor, can improve their liquidity in the short term. This option has long been available as a financing option for companies. They use their fixed assets, for example, sell production facilities or parts of the vehicle fleet to a leasing company. then lease they return the assets necessary for the company in order to be able to continue using them. There are neither production downtimes, nor does anyone notice anything about the sale. And the leasing rate is a business expense that businesses deduct from tax. If the leasing contract expires, the companies can decide whether to buy back the leased objects or whether they want to lease them on.
Sale-and-lease-back also possible for private individuals
The sale-and-lease-back principle expands the financing options for companies. For private individuals who have little security to offer, the chances of participating in this system have so far been rather slim. Pfando has changed this with its sale-and-rent-back concept. Now private individuals can also monetize their car and continue to use it for a fee. This concept can represent a real alternative to the installment loan.
What advantages does Pfando have for private individuals?
The processing is quick and unbureaucratic. The provider does not ask about the monthly income, does not need Schufa information, does not require proof of remuneration and is not interested in further collateral in order to grant this credit alternative. Only the value of the vehicle is decisive for the amount of the payout. As with sales and lease back, the customer receives the amount and can continue to use the vehicle.
The strategically well-distributed branches across Germany make it possible for most customers to find a contact person nearby. The evaluation request is very easy to do via WhatsApp or via the website. After the evaluation, the provider makes an offer. The final sum of money is determined by an employee during a personal appraisal of the vehicle. Appointments can be made quickly and easily by phone. Once the employee has rated the vehicle and the customer has accepted the purchase offer, it usually takes less than an hour for the amount of money to be paid out.
What else should be considered?
Practically every vehicle is suitable for sale-and-rent-back. The prerequisite is that the vehicle is registered and properly insured. After the contract is signed, Pfando is the new owner of the vehicle. The customer remains the immediate owner and continues to use it. For this he pays monthly rent.
The system works unbureaucratically and is discreet. Since the car can still be used, outsiders will have no idea that the service is being used.
The customer continues to use his car and takes care of its maintenance, maintenance and care as before. He is even contractually obliged to subject the vehicle to regular inspections, to maintain it properly and to ensure the validity of the registration papers and the insurance.
Is sale-and-rent-back worth it?
Sometimes it is simply necessary to react flexibly and quickly in order to cope with a financial bottleneck. The Cash & Drive concept gives customers the opportunity to have short-term money without credit in order to pay off debts or to make a major purchase. At the same time, customers remain mobile and continue to drive to work in their own car.
Of course, that wasn't the end of it!
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