Logbook loans essentially allow you to release the equity you have in your vehicle. For this reason your car needs to be already clear of finance, or nearly clear so that you can be considered for this type of loan. Lenders vary in their terms from 100% of the vehicle value down to 50% which will generally be independently inspected and valued to ensure fairness. If you meet the basic eligibility criteria then you can be considered for this type of loan. Important things to remember about logbook loans are that you sign a bill of sale which means you no longer own the car until the debt is repaid in full. Unlike a payday loan, this is secured on your vehicle. You must own a vehicle to get the loan outright in your name as the registered keeper, and you must be able to afford the logbook loan. If you meet these requirements so far then please feel free to read on for a fuller understanding of the requirements and how you can get money out of your car fast.
What’s the procedure for logbook loans?
To keep this as easy to understand as possible I am going to bullet point the normal procedure and process from start to finish.
1) Submit your application online to get the process going.
2) You’ll be asked if you meet the basic requirements which involve you being over 18; you own a vehicle with little or no finance; have an income; a UK residence; you have the logbook in your name; a valid bank account.
3) Assuming the loan details above can be worked out – your vehicle is valued and an offer made.
4) Sign agreement and bill of sale, the vehicle is owned by the lender until you repay the loan in full.
5) Make repayments and at the end the logbook and bill of sale is removed leaving you the owner again.
This is a pretty simplified version for example they may need to come and independently inspect the vehicle to ensure its as described and valued but it’s a good basis for understanding the process. The lender will explain exactly what to do themselves once you make an application.
How do I apply for logbook loans online?
Plenty of lenders now offer you the ability to get started with logbook loans online. While the process can’t entirely be completed online it’s a convenient way to cover most of the basic requirements to ensure that you are a good fit for the loan and that you want to go ahead with the process itself. It’s very easy to fill out a logbook loans application online and a good starting point for the process itself if you want to borrow money.
Your car will be repossessed if you don’t repay eventually
Let’s be clear. You are selling your car in a pawning fashion. You sign a bill of sale. This means you no longer own the vehicle until the loan is repaid in full. Just like a pawn shop, if you don’t repay then the ownership of the goods reverts to the lender. Make sure that any you take, you can afford to repay as you do not want to lose your car. You will give the logbook and sign a bill of sale. This is enough for the lender to transfer ownership if you break the agreement. I hope that’s spelt out clearly. Make repayment or don’t take a loan!
What are the costs involved?
Generally the main cost of the loan is the interest that you repay on the amount of money you borrow. If you repay late there can be charges too much like short term loans so make sure that you can clearly afford the loan and that any money you borrow is not a stretch. Lenders will do their absolute best to ensure you can afford the loan too.
Can I get bad credit car loans?
Just like bad credit loans or bad credit payday loans, it all depends on how bad things are. What you see as bad, might not be so for another. Someone else may believe their credit is good but in fact by scoring it is terrible. Much relies on the maths when it comes to bad credit car loans so the only option is to apply and see what lenders can come up with for you. You might be surprised in a good way!
Who does car loans for bad credit?
There are plenty of companies out there now that specialise in car loans for bad credit as there is still an asset in place and it makes recovery of funds that much easier for them. I highly recommend that you make sure you can afford the money you wish to borrow and can prove it. From here a lender can then take the situation seriously and closely look at your application to ensure that it will workout and be good for you too.