You may be able to find an online loan, such a logbook loan on the web or on the high street. You may choose to opt for loans ranging from £500 to £50,000. The loan amount varies with the true worth of your car; however, you’ll find some companies that have this restriction to lend only up to 50% of your car’s worth.
You might need to submit the registration document of your vehicle or the logbook while taking out a logbook loan. These documents are enough to prove you as the registered car keeper. Regardless of whether you submit these documents, you’re actually handing over your car ownership to the lender till the time you’re able to repay your debt.
A fast cash service is offered by a few of these logbook companies that charge about 4% of your loan amount as the interest.You may consider checking the details with any company that provides unsecured loans.
How to repay a loan
Logbook loans are usually required to be met within 78 weeks, even when you have the option of paying them back much earlier if you choose to. However, some agreements will require you to repay the interest charges till the very end of your contract period. In that case, you’re allowed to pay the loan in full during the last month.
Does your logbook loan look expensive?
The cost of logbook loans may vary between providers. Some of the quick loan providers may charge the APRs, which may prove to be expensive. That’s why it’s important that you go through the loan agreement carefully just to make sure you can afford to repay in time.
Inquire about the following factors while taking out a logbook loan
- Considering paying off a loan as early as possible. It will save you those interests, especially when it comes to those high APRs.
- Advance repayments over a certain amount might compel you to pay additional charges. Read the offer clauses more attentively.
- Check if your lender offers any Direct Debit facility.
- Keep a track of your payments and the amount you owe after each payment. Request a statement.
- The worth of your car determines the amount you can borrow. Evaluating your vehicle is often a necessity with some of these lenders, especially with the more reputable ones.
- A logbook loan is often easily achievable even when you have finance against your car of late. It usually happens when you owe a small amount and the current agreement has covered the entire loan term. Again, you’ll need to seek permission from your lender prior to applying for such loans.
In the event you fail to repay your loan, logbook loan lenders are able to use bailiffs for seizing your car. However, most of them won’t do it till the time your loan is written off as bad debt in their books. They will even serve you a notice some 14 days in advance. That’s why it’s important for you to work out a repayment plan in advance.