LOGBOOK LOANS 101: What you need to know about logbook loans
There comes that time in life when you just need some money to give you a boost out of the financial torment you are facing. Sometimes your friends and family wouldn’t even dare lend you some cash. After all, you can’t blame them. Lending money to friends and family has never been a great financial decision. Not to worry though. Logbook loans are just the solution that you need. As long as you own a car, you should be able to get out of tight financial situations effortlessly. Find out more about these ‘magic’ loans below.
What is a logbook loan?
According to Wikipedia, a logbook loan is a form of secured lending in the United Kingdom. That means that you can acquire a specific amount of cash using just your logbook. All you need to do is visit a certified logbook lender. Some banks even offer such services. However, there are specialized financial institutions for just this. After you get your money in exchange for your logbook, you will be required to repay it in specified amounts over a given period of time.
Does every logbook fetch the same loan amount?
The answer to that question is a sound – NO! Different logbooks entitle you to different loan amounts. That depends with the type of car you own. Logbooks that belong to luxurious and more expensive cars would get you more money than common and cheaper vehicles. Note that, a car is a depreciating asset. Therefore, logbooks for vehicles that are a little out dated would get you less money, because they have lost value. So, before you even apply for that logbook loan, it’s important that you take your vehicle for valuation to know how much it’s worth. Although lenders would evaluate your car before giving you the loan, you should also do it on your own first in order to be sure.
Are logbook loans risky?
Logbook loans will become risky if you fail to repay. This is because the lender is allowed by law to take possession of your vehicle even without a court order. You do not want this. Even when you have made part of the repayments, the lender of the loan can still take your car. So, you end up losing so much in the end. Moreover, you need to know that logbook loans are just like any other loans. The only difference is that they are way easy to acquire. In some cases, you could get a logbook loan even with poor credit as long as you are able to prove your flow of income. Pretty convenient, isn’t it?
Taking a loan is the easy part. Repaying it though could be quite a hassle. Luckily, various lenders have different repayment conditions. Some could require larger amounts for a shorter period of time, whereas others could require shorter repayment amounts over a longer period of time. Remember to always check the repayment routine before agreeing to the loan. You want to go for the shorter amounts over longer periods, because they are less stressful. However, you might end up paying more interest with this package. That’s why you need to get logbook loan quotes on http://www.justlogbookloan.uk/ for more certainty.