A logbook loan is a type of instant credit that is available for the finance-free vehicle owners (cars, bikes, trucks, lorries, etc), and relies on using the vehicle as security for securing the loan.
Making the most of the logbook loans
A quality aspect of signing up for the logbook loans is the procedure used in the application process. In most cases you will notice that the lenders don’t conduct a full credit check irrespective of the applicant’s prior history prior to approving the loan. So if you are someone that is experiencing difficulties with getting a loan from the high street lenders, like the banks and building societies, you will certainly appreciate the more flexible approach provided by the logbook loan companies.
A further great quality of the application process is that it is completed very quickly. In most situations a loan is going to be approved or declined within a matter of hours and if approved the loan payment can be paid into the customer’s account within 36 hours. You might find that the interest rates on these types of loans are slightly higher than what you would expect with the mainstream lenders, but if you are able to shop around it should still be possible to get a very desirable loan offer.
Making certain to match the criteria
In the process of signing up for one of the logbook loans it will be necessary to meet certain criteria set by the lenders. Criteria relates to having full ownership of a finance free vehicle, which is within an age of eight to 10 years (depends on the lender), and insurance is in place. Even though there is an age limit in relation to the vehicle this might not be applicable if you are looking to use a vintage or classic car. If you do believe that you have a valuable classic car which can be used as collateral you might want to contact the vendor directly in order to establish the available choices in relation to taking out a loan. It is also necessary for the applicant to be aged 18 or over and a resident of the United Kingdom.
A standard logbook loan is likely to be based on a value in the region of £500 to £50,000, and that this is directly related to the vehicle that you will be used as collateral. In most cases it is possible to get a loan that is equal to 65 to 85% of the commercial value of the vehicle. In order to get a full appreciation of a vehicles value, the lenders will send a representative to inspect the vehicle to establish the right market value, which gives the opportunity to calculate the loan amount available.
Is this a quick and easy loan option?
If you are in the position of being able to a pay the weekly or monthly repayments in a timely fashion, you will certainly find that the logbook loans are a highly attractive option for getting quick cash injection which can be used for a wide range of reasons. But it is important to remember that since the vehicle is being used as collateral for the loan, the lenders to have the right to repossess the vehicle in the event that you fall behind with the payments in the future. So if the vehicle is essential for work or similar responsibilities, you will certainly want to carefully consider whether you want to take out this type of loan if you believe that there might have any difficulties with covering the regular repayments.
Are there any significant drawbacks
Since you are not using a mainstream loan from a high street lender you will likely find that the interest rates are going to be higher than normal, but still significantly better than short-term loans like the payday loans. It isn’t always necessary to paying significantly high interest rates if you are able to invest the necessary time and effort into researching the market. If you are in the situation of being able to obtain the loans from the high street banks, you aren’t likely to be concerned with a slightly higher interest rate since you will be able to get the cash loan for the desired amount.
By using the price comparison websites you should be able to get a full appreciation of the likely costs involved with the various different lenders. Ideally, you want to look at getting a good three or four quote which you can compare side-by-side to give the necessary time to inspect the offered terms and rates. Once you are able to decide on the most preferable candidate you can make direct contact with them in order to get a firm loan quote that is able to match the specific circumstances.
Where to find a logbook loan?
There are many place online where you can look if you want a logbook loan. If you want to apply directly with a lender than you can submit your application online with the likes of Varooma and other similar companies. The other alternative is to apply with a company like JustLogbookLoan that works with other lenders and simply arranges a free quote for you. The advantages of this is you may be able to think more clearly without as much pressure, knowing that it is just a no obligation quote.
Whichever route you decide to go on, it is always a good to get the appropriate advice first before. And as always if you ever get into difficulties, you should got speak to someone at the Citizens Advice Bureau.