Latest Blogs
Jan 16

Why have log book loans become such a popular form of lending money?

Posted by:AutoMoney

Over the past few years there has been an increase in the number of people applying for log book loans. This is a type of loan that is secured against an individual’s car. But what is it about a log book loan that makes it so popular? Let’s find out...

Firstly you must consider the fact that practically all loan types have increased in popularity because more and more individuals are feeling the need to borrow cash. Financial strain is widely felt in the UK because of the recurring impacts of the recession and the rising living costs. Thus, it is not surprising that many people unfortunately find themselves in a predicament whereby borrowing money is the only solution they have left. But, why select a log book loan when there are many alternatives available?

The eligibility criterion of a log book loan is an appealing aspect. This is a loan which is open to a wealth of different people. In fact, those with a bad credit history or no history at all are often considered. Generally you will need to prove that you are over the age of 18 years old, that you own the car and it has been paid off in full, and that you are able to make the repayments outlined in the contract. Nevertheless, the criterion for determining a suitable candidate differs from lender to lender.

Log book loans are also popular because they generally give people the option to borrow more money than a payday loan does. This is because the money you receive is comparable to the worth of your car. Typically most lenders allow individuals to borrow up to 70 per cent of their car’s current worth. Thus, from as little as one hundred pounds to as much as five thousand, the amount varies.

Many believe that the reason why logbook loans were not as popular in the past is because there was very little information regarding what they are all about. In fact, most people thought that they would lose the right to drive their vehicle until they had paid off the loan in full. This is not the case. The only time your car can be seized is if you fail to meet the conditions outlined in the contract. Thus, the loan has no impact on your everyday life.

Ease of application is another factor worth bearing in mind. There are a lot of companies online providing this service. Typically you will begin the process by merely filling out a quick and straightforward form on the company in question’s website. There are also companies that promise to deposit the money in your bank account quickly after the application has been approved. Some even state that they will do so within the hour. This is another reason why so many people have turned towards this method of lending.

When you take all of these points into account it is not difficult to see why log book loans have increased in popularity as of late. All you must do now is search online and find the best lender for your needs specifically.

Summary – Log book loans seem to be increasing in popularity by the day. But, why is this the case? This article assesses the various reasons why more and more people are turning towards this form of lending money instead of the other available options.

Borrow with confidence

Borrow with confidence

We are PROUD MEMBERS of The Consumer Credit Trade Association. AutoMoney were forerunners in the creation of The CCTA Lending Code of Practice and we adhere strictly to its principles. Click here to view. ALWAYS MAKE SURE THE LENDER IS A MEMBER.

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.