Logbook loans are a form of borrowing that are becoming more and more popular with each passing year. The reason for the recent surge in their popularity is because basically anybody can take them. So long as a person owns a vehicle — be it a car, a van, a motorbike, a motorhome, or even a helicopter — they can secure this type of loan.
If you’re a vehicle owner and ever find yourself in need of a quick cash injection, then taking out a logbook loan is a safe and viable route for you to go down. Before you decide to opt for this form of borrowing, however, you should know the ins and outs of what you’re letting yourself in for.
Here’s the lowdown on everything you could possibly need to know about logbook loans:
How do they work?
As stated, logbook loans are secured against vehicles. Should you decide to go down this borrowing route, for all intents and purposes you will hand the ownership of your vehicle over to the lender that you opt to take the loan out with. You will be able to carry on using your car or bike throughout the duration of the agreed loan period, but you must ensure that you are able to pay the money that you borrow back on time and in full. If you don’t, your vehicle will be taken from you.
How much can you borrow?
The amount that you are able to borrow when you take out a logbook loan is completely dependent on the value of your vehicle. Generally, most lenders will allow you to borrow between £500 and £50,000, and some firms may only allow you to borrow half of what your vehicle is valued at. It is for this reason why you should shop around and seek to find the best deal for you.
When you do decide to shop around in this instance, one lender that you should definitely check out is Car Cash Point. As stated on their website www.carcashpoint.co.uk they operate a ‘Best Rate Promise’, which means that they won’t be beaten on price. Should you end up finding a lower price with another logbook loan provider, they will always resolve to beat it by 10%.
How long do you get to pay back?
No matter how much money you borrow from your logbook loan provider, you will generally get around 78 weeks to pay it back. The good thing about this form of lending, however, is that you won’t be penalised for paying your borrowed amount back early. The law states that logbook bor-rowers are entitled to pay off their loan as and when it is appropriate for them to do so, which means that you won’t have to worry about being forced to pay back your full interest rate. This flex-ibility will grant you more control over your borrowing, saving, and spending habits.
Should you ever find yourself in a position where you are in desperate need of cash, be sure to consider taking out a logbook loan.
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© Carol Trehearn 2020