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Category: Logbook loan

Important things everyone should know about logbook loans

Fact is that life can be really difficult sometimes. Even the Government has its own share of financial problems and has to outsource funding from other countries. So, going through tight financial circumstances is nothing to be ashamed of. Have you tried borrowing from friends and none of them seemed to bail you out? Or maybe you tried taking a loan from your bank and it still didn’t seem to work out. Well, don’t worry. Logbook loans are actually a great alternative you could try.

Take a good look at your car, because that just might be your saviour. Why don’t you leverage it? Even if the bank may not accept it as collateral, there are some other financial institutions that would love to give you reasonable cash amounts for your vehicle. In fact, all you need is your V5 document and you are good to go. You can checkout sites like justlogbookloan.uk for some of the best deals. Keep on reading to find out more about logbook loans.

Definition of a logbook loan

As Wikipedia best puts it, a logbook loan is simply a secured form of lending that is universally accepted in the United Kingdom. In other words, it can be a simple bill of sale, whereby your logbook acts as a document that transfers your car or property rights to another party. Therefore, anytime you take a loan using your V5 document, you transfer the right of ownership of your car to the issuer of the loan. That’s why it is so legally easy for the lenders to take possession of your vehicle upon loan defaulting. As a matter of fact, they are not even required to have a court order to do that.

The Risks

It is very critical to know the risks you are subjecting yourself to when taking a logbook loan.

  • You might actually lose your car: Some of these lenders don’t joke around with their money. They will take hold of your automobile without even flinching! Loan issuers will always tell you that they will help you out during your financial battles and even repayment. Well, the only way they will do this is by giving you more money so that they can earn more interest as you get into more debt in the long run. Don’t blame them. That’s just how business works.
  • You might not meet the deadline: When people take loans, they usually have “sure” ways that will help them get more money and perhaps pay off their debt. You obviously have your own plans too, right? Well, the truth is that they might not always work out. Life can be so unpredictable at times and when that happens, you stand a serious chance of losing your vehicle for good.
  • No court order: That’s a good thing for the lender but it isn’t for you. That means you can’t stall, because there is no legal process to be followed. The issuer has every right to take “their” car at any moment after you fail to meet the repayment deadline. Yes, it’s their automobile now that they have the logbook in their hands.
  • Low interest rates could be traps: Some lenders will give you interestingly low rates if you take huge loan amounts. Don’t fall for it. It’s a classic trap. With logbook loans, always go for the short term options with moderate interest rates and you’ll be okay. The last thing you want is to pay a car loan for the next number of years.

With all that in mind, make sure that you are not fooled by the attractive offers and jump into a logbook loan without properly understanding the repercussions.

Logbook Loans for Older Cars Review: Which one is best for you?

Did you know that you could get logbook loans for vehicles that are over 10 years old? In case you weren’t aware, there are institutions that have specialized on issuing loans for old vehicles. Therefore, instead of letting that rusty aged automobile rot in your garage, why don’t you use it to get a loan? The process is really simple. All you need is your V5 document and that’s it. However, you need to note that the vehicle will run a valuation test before you can receive the loan. Don’t expect that much though. After all, it is an old vehicle. In case you have decided to get yourself a logbook loan, below are some of the best ones the United Kingdom has to offer.

Easy Logbook Loans

Are you looking for a stress free logbook loan? The name says it all. With easy V5 loans, getting money with your vehicle on the line is quick and simple. One thing you will like about this log book loan company is the monthly payment calculator that lets you know how much you need to pay back every month before your loan expires. All you need to do is insert your repayment period and money borrowed and voila! You get your expected monthly payments. Unfortunately, the least amount of cash you can borrow is £750. That’s pretty steep compared to other logbook loan offers.

Varooma Logbook Loans

Varooma is a well-known logbook loan lender in the UK. It is quite reputable and you can depend on it for some of the best loan offers. They specialize in offering short term loans and are a great option for bailing you out quickly. Furthermore, they are not so strict when it comes to issuing loans. They don’t even have a maximum vehicle age! Even with a poor credit history, you will be able to get a fair loan amount with Varooma. Additionally, they do not have any hidden costs and charges, enabling you to acquire your loan smoothly. However, you will have to wait for hours before you get a credit decision.

Car Cash Point Prestige and Vintage Loans

If you are in need of a really long-term logbook loan, then Car Cash Point is one option you should really consider. Unlike Varooma, these lenders specialize in long-term loans. They can offer loan amounts of up to £1000000! You have to admit that that is some serious cash. Therefore, if you want a huge sum of money, you are definitely in the right place.  However, you should know that such an amount of funding only comes at the expense of a costly vehicle. So, if you don’t own a good German machine, super car, or any other high end vehicle, you won’t be able to get that much out of them.

Auto Advance Logbook Loans

Are you in a hurry of getting a logbook loan? Then Auto Advance is one of your best chances. Their quick response is quite impeccable. In fact, they will give you the decision of your loan in minutes! Therefore, you won’t have to wait for hours or days just to meet the disappointment of not being disqualified for your loan. Apart from the decision, Auto Advance offers reasonable APR rates and a variety of loan quotes for you to choose from. However, your vehicle has to be equal to or less than 10 years old in order to qualify for a loan from this lender.