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Jun 11

What are the advantages of opting for a loan secured on car when in need of cash?

Posted by:AutoMoney

It is never a good feeling to be in the position where you need to borrow money. However, there is one shining light, and this is the fact that there are many lending options available nowadays. One popular option is a log book loan – this is a loan secured on car. If you opt for this type of loan you will essentially grant the lender temporary ownership of your vehicle and they will lend you up to seventy per cent of its current worth. So, what are the advantages associated with going for this option?

You get to keep your vehicle – Firstly, if you opt for this type of loan you won’t experience any inconvenience to your daily life, as you get to keep your car. The lender only has the right to take your vehicle if you fail to make the repayments you agreed to.

Flexible lending solution – This is one of the most flexible short term loan options. Whilst you may be able to borrow up to seventy per cent of your vehicle’s worth, you don’t have to borrow this much. Moreover, there are many log book loan lenders available nowadays, and thus more chance that you will find the ideal loan for your needs specifically.

Wide variation of applicants will be considered – Aside from the two points that have been mentioned, another benefit is that the eligibility criteria are often more flexible. This does not mean everyone can get a log book loan, but it does mean that those with a bad credit history will be considered. Thus, there is a greater chance of you being able to borrow money if you go down this route when compared with more traditional lending methods.

Apply face to face – Last but not least, the final benefit associated with a loan secured on car is the ability to meet the lender in person. Some loan companies process their loans entirely via the internet, but because a logbook loan is secured on your car the lender will usually need to see it to assess its value. This means you will have the opportunity to meet a representative of the company in person and ask any questions you may have. They will tell you everything they require from you and make sure that you can afford the monthly repayments. Some people find this more reassuring than dealing with a “faceless” company via the phone, or internet.

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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.