South Carolina Auto Pawn Loans

Auto pawn loans can be structured in a variety of different ways, depending on the needs of the customer and the policies of the auto pawn lender. Some lenders feature flexible options for how an auto pawn is to be repaid and what happens at the end of the term. In many cases, if the loan is not fully repaid by the end of the term, the agreement permits it to be rolled over into another loan. This is a common result when a balloon payment comes due at the end of the loan.

Rollovers at the End of Auto Pawn Loans

Loan rollovers have their benefits and their detriments. On one hand, a rollover prevents the lender from being able to repossess the borrower's car for failure to execute the repayment agreement. On the other hand, a rollover locks the borrower into continued debt and multiplies the total cost of the loan due to more interest payments. Some states limit the number of rollovers than can be done on one loan. In South Carolina, only six rollovers are permitted by law.

The goal for all borrowers should be to repay their debt before the end of the agreement. If that is not possible, borrowers should take all necessary steps to limit the number of rollovers on an auto pawn. Otherwise, they should be prepared to pay more in interest than they received in principal.

If you are looking to use your car's equity as collateral to borrow money, contact Wilshire Consumer Credit. Licensed and certified to operate in South Carolina and four other states, this lender offers flexible term options to suit your needs.