What to know about logbook loans

From high street to the internet, logbook loans are becoming more and more common every single day. A modern form of a bill of sale, the logbook loan is quite a secure transaction used by many people today. There are numerous loan firms present on the market, such as Log book Loan Calculator, that can offer you a fast credit secured on your car or vehicle of choice.

Are logbook loans any good?

While most have probably heard of logbook loans, many people might be on the fence regarding getting one. Are there any benefits? The answer to this question is yes. You do not have to sell your car to benefit from its value. If you are short on currency, this venture is great for helping you solve any unexpected financial problem.

What does the process involve?

The loan is obtained in exchange for the V5 registration document by using a bill of sale. This means the loan is secure and straightforward. Depending on the value of your vehicle, you will have access to a certain sum of money, usually anything from £500 to the full extent of your car’s value. This sum will either be put in your bank account, or given to you personally in the form of a cheque or cash. You will also get to keep the use of your vehicle, which is a good thing. However, a great loan firm such as logbookcalculator.com will only lend you the amount of money they believe you can safely return.

The ins and outs

The conditions and terms can vary from one lender to another, so it’s best you do your homework before applying. You will have a certain amount of time to pay back the borrowed sum, the minimum usually being somewhere around 3 months. This issue should be discussed in the meeting with the lender. If you cannot return the money, the lender will be able to take possession of your vehicle.

This is why it’s best you read the entire lending document, even the small print before you sign anything. Some logbook loans can have an APR somewhere around 300 – 450%, which is quite high. This being said, if you want to borrow £1000 for a period of one year, you will have to pay about £163 a month, the final sum mounting to £1960. Of course this depends on the lender, and choosing the right logbook loan can save you a lot of money in the end. There are many such firms out there, some of which have an APR of only 99.9%. Staying with the same example above, for £1000, you will only have to pay somewhere around £118.88 a month, saving you a great deal of money in the end. A great option is logbookcalculator.com.

What to look for in a logbook loan?

There should be no hidden fees and you should have the option of settling early without any penalty. A good loan will give you the opportunity to make an overpayment with less interest. If you decide upon taking a loan, you might also look for one that gives you the choice of either a monthly or weekly payment, depending on your circumstances.

And remember, before you sign up for one; consider just how much money you actually need.

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