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Mar 19

Is a loan against car the right option for you? Or should you look for another borrowing method?

Posted by:AutoMoney

Are you considering a loan against car? There are many benefits associated with this borrowing solution if you are strapped for cash. Many people prefer this type of loan as it gives them the possibility of borrowing a lot more money than a pay day loan does. In addition to this, with so many log book lenders to choose from, you are bound to find a loan you are happy with.

Nevertheless, similarly to all types of loans, this lending solution is not for everyone. Keeping that in mind, read on to help you determine whether this is the right solution for you...

First and foremost, let’s begin by discussing the general eligibility criteria for a log book loan. After all, if you do not meet the requirements put in place, you are better off looking for a different solution.

As this is a loan secured against your vehicle, you will obviously need to be over 18 years of age and you will need to own your car. Your vehicle should be paid in full and you should be up to date on its tax, MOT, and insurance.

In addition to this, you will also have to prove you have the ability to make the repayments. Thus, proof of income, such as pay slips, will be required.

These are the general requirements. However, you may find that some lenders ask for more information and other documents. If you meet the outlines that have been put in place, there is every chance that this is the perfect loan for you.

The second and final thing you need to assess is whether this type of loan is suited to your situation. In most instances, a log book lender will give you the possibility of lending up to seventy per cent of your vehicle’s current worth. Thus, you may have the option for borrowing several thousand pounds.

In addition to this, your repayment period can be anything from six months to two years. Some companies even give you a grace period whereby you need not pay anything back for the first month or two.

If this sounds good to you, then all you need to do is start looking online for the best lender today!

Summary – There are many advantages associated with a loan against car. However, this is not the right lending solution for everyone. This post helps you to determine whether it is right for you.

Borrow with confidence

Borrow with confidence

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350.5%APR Representative
Representative example: Loan amount £1000. Duration 18 months. Repayable by 16 monthly repayments of £170.42 and one of £198.42 (includes Bill of Sale registration fee of £28) commencing two months from the date of the loan. Total amount repayable £2925.14. Rate of interest 187% per annum fixed. Representative 350.5%APR. LOANS ARE SECURED ON YOUR CAR. The vehicle may be repossessed if you do not keep up the repayments.