It’s a massive asset sitting in your garage slowly gathering dust and depreciating in value. So if cash flow is a problem in your life and you don’t have the £50,000 required to put a deposit down on your yearned-for holiday home in somewhere like Sandbanks, for example, then a specialist and upmarket pawnbroker has set up shop to help out.
London based firm TGS suggests that, rather than sell your beloved lean machine to finance the deal, why not just pawn it? More sensitive souls might call it asset-based short term lending, but TGS says it’s just a way to get your hands on cash quickly without involving a bank.
The credit crunch has seen business expand rapidly for the firm as banks have become reluctant to lend on property transactions, even when their clients are wealthy.
Paul Zimbler, who runs TGS and has 14 shops across the capital, says he spotted this gap in the lending market by mistake. Customers had been coming to him for ‘title’ lending – which is when the borrower keeps the car but takes out a small, short-term loan against its value – but notice clients looking to borrow larger sums.
Paul says he then offered to keep the car in return for a larger loan. TGS will lend up to 70% of a vehicle’s value and loans can be for up to seven months – although typically they last one to three.
Recent deals Paul says he’s completed include £60,000 leant against an Aston Martin, £40,000 against a Porsche 911 and £100,000 against a new Bentley, all of which were used to finance property purchases. Most people use the service to pay unexpected bridging loans, finance the costs of moving home including stamp duty, or put down deposits.