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Jun 24

Discover some things you need to know regarding logbook loans

Posted by:AutoMoney

No one likes to find him or herself in a position where they need to borrow money. However, the good news is that there are options for those who are in need of some extra cash. A logbook loan is just one of these options. Keeping that in mind, read on to discover some basic things you need to consider about logbook loans...

Let’s begin by determining what a logbook loan actually is. This is essentially a loan that is secured against your car. You will have full access to your vehicle, whilst the lender will take your car’s logbook. If you do not make the payments you have agreed to, the company can then take your car.

How much money can you borrow when taking out a logbook loan? This all depends on your car and the company you are lending off. In general, lenders will allow you to borrow up to 70 per cent of your vehicle’s current worth. Companies often use the Glass Guide to determine this. You can then pay back the amount you have borrowed over several months or a couple of years. This again depends on the lender.

Who can benefit from this type of loan? Well, obviously you will need to be over the age of 18 and you will have to have a full driving license. You must also prove that the car has been paid for in full. Aside from this, your MOT and insurance will need to be up to date. Finally, one of the most important things you need to show is that you have the ability to make the repayments. Therefore, income slips or something similar are essential.

Now you have a basic insight into logbook loans – what they are, how much you can borrow and who can apply for one. So this is a lending option you may want to consider. Nonetheless, if you do go down this route, make sure you select a lender with care. Never agree to a loan unless you are one hundred per cent happy with the terms. Moreover, make sure the company has a good reputation and lots of experience in the industry.

Summary – When it comes to borrowing money, logbook loans are a popular option. This post reveals things you need to know about this method of lending. What is it? Who can benefit from it?

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.