How to get a loan secured on your car, get a quote in 60 seconds and get approval within 1 hour.
How to get a loan secured on your car, get a quote in 60 seconds and get approval within 1 hour.
Loans secured on your car are cheaper than other types of loan, the car acts as security for the loan meaning that if you fail to keep up the repayments on the loan then you could lose your car meaning that your car is at risk of repossession if you fail to keep up the repayments.
If you do find yourself in financial difficulties and unable to pay the loan back then you should immediately contact the lender to get a loan extension or payment holiday, with a payment holiday you can stop making monthly payments for an agreed number of months, this is ideal if you have lost your job or just finding repayment too difficult.
The main advantage of a logbook loan is that as a secured loan, lenders are more likely to lend to people when they have security against the loan because the lender knows that the money that they lend to you is safe, either you will pay the money back or if you canít pay the money back or wonít pay the money back then the lender can repossess your car, repossession is always a last resort but it offers comfort to the lender that they can get their money back.
Iíve talked about the need for loan security from the lenders point of view but what about from you the borrowers point of view, well a logbook loan is easier to get than other types of loan because of the loans security this means that if you have a bad credit record because maybe you have had loans in the past and failed to pay the loan off or have had a vehicle or house repossessed or just donít have much money then your probably have bad credit and only a secured loan lender will want to lend to you.
One of the other advantages of a loan secured against your car is that you can make use of the money that you have invested in your car, your unlocking the money that is tied up in your car but your still able to keep using your car each day just like you didnít have a loan on your car.
When your desperate for cash we often think about not having a job or not earning enough or not having enough money in our bank account and we forget that our car is worth money or if we know this then we think that the only way to get the money from our car is to sell our car and then of course if you donít have a car then your unable to get to work or take the children to school.
You can apply for a log book loan online, there are two steps, the first is to get a quote, you can get a quote in one minute because all your asked for is your cars number plate and the mileage on your car, this is the total mileage as recorded on the mileage display (usually found on the same dial as the speed indicator in your car), armed with these two pieces of information the lender can calculate how much your car is worth by looking up your details online and in real time with the DVLA, this shows the lender who the registered keeper of the vehicle is as well as the year of manufacture and the make and model of the car.
Only the owner of the vehicle as listed on your V5C form can take out a loan against your car, maybe you use the car everyday but the car is actually registered in the name of your husband, wife, mum or dad, if thatís the case then you canít take the loan out yourself but will have to ask the registered keeper to take the loan out for you.
To see how much you can borrow simply complete the quotation form and instantly youíre be offered a quote showing you how much the lender thinks your car is worth and how much the lender is prepared to lend to you, the quotation will show you the length of time that you have the loan for and how much you must pay back each week or month, you can usually adjust the loan term to better suit you.
Making the loan term longer (giving yourself longer to pay back the loan) will mean that your monthly loan repayments are cheaper, but because you have the loan out for longer your pay more in interest, the cheaper option is to take the loan out for the shortest possible time as your pay less interest.
Logbook loans are fast loans, its fast to get a quote online, fast to get approved and fast to get the money in your bank account, not all logbook lenders want to put the loan money in your bank account, some lenders want to meet with you personally and give you a cheque which you can cash at your bank.
Some logbook lenders will offer weekly repayments and others will offer monthly repayments, the repayments are often by direct debit directly from your bank account so your need to have the money in your account to make the repayment and thatís the best way to choose whether you want weekly or monthly repayments, choose a repayment period that matches your wages, if your paid monthly then a monthly repayment will ensure that the money is in your account as you have just been paid.
With a logbook loan, youíre have same day approval and a fast loan application if you have a good credit rating and all the online and automatic loan enquires that the lender make check out, if there are problems then it might be slower to give you the loan.
A logbook lender is more likely to lend you money than other types of lender if you have bad credit, but that does not mean that its guaranteed that your get the loan, each individual circumstance will be different, but a secured loan does mean that a lender is more likely to lend to people with bad credit histories or no credit histories.
You get a bad credit history by not paying back money you owe or not paying the money back on time, if a lender has taken you to court and you have had a CCJ (County Court Judgement) issued against you for non-payment or indeed any other reason, then youíre have a very bad credit history.
All finance companies are required to report loan applications to the credit reference agencies, but logbook loans are not treated as loans in that they are regarded as a bill of sale, this means that the logbook loan company does not need to report the loan or the loan application so you wonít get a bad credit history by applying for a logbook loan.
You can borrow from £250 to £50,000, the amount you can borrow is the amount that your car is worth, but note that typically you can only borrow up to 80% of your cars value, that is because if the logbook lender has to repossess your car they will want to sell your car quickly and because the loan has been made to you online they are unsure of the exact condition of your car, so by selling the car at a 20% discount, the lender ensures a fast sale and can take account of any defects with your car that would otherwise lower the price of your car.
You can check eligibility for a logbook loan online, the quotation will tell you if you can borrow money against your car, your need to make sure that your car has car insurance, road tax paid and a valid MOT certificate, the reason is that lenders will only loan money against a car that is legal to be on the road, cars stored in sheds without road tax and insurance cannot be used to get a logbook loan, your need to tax and insure your vehicle first.
If you need cash quickly youíre be pleased to know that itís not only cars that you can take a logbook loan out on but motorbikes, scooters, mopeds, vans and trucks as well, any vehicle with a logbook where you are the registered keeper of the vehicle as recorded by the DVLA.
If youíre not the registered keeper but should be then you can contact the DVLA before you try to take the logbook loan out and get your details updated.
Some lenders, the ones that want to come around to your home before they will lend you the money will want to take your cars logbook away with them when they give you the money, your then get the logbook back when you have paid off the loan, thatís OK because whether the lender takes your logbook or not the logbook will still show the name of the register keeper which whilst you have the loan will be the name and address of the logbook loan company, the name on the logbook will revert to your own name and address when the loan is paid off.
You continue to use your car whilst you have the loan and indeed that is one of the biggest advantages of a logbook loan, you donít have to hand in your car to get the money like you would have to if it was possible to get a pawnbrokerís loan against your car.
If you work for someone else or you are self-employed, it does not matter, your be able to take a loan out against your car as long as you are the registered keeper (owner) of the car, if your car is a company car then you can take a logbook loan out in the name of the company that you own, your then be able to use this money for your business, indeed a logbook loan is a good way to get a business loan if the banks wonít lend to you.
To get a logbook loan the lender will want to know that youíre capable of paying the loan back and for that your need to tell the lender that you have some sort of income, that could be a job or other regular benefit you receive each week or month, if you can show that you have enough money each week to make the loan repayments youíre be able to get the loan.
Because loans start at £250 and go up to a maximum of £50,000 you can borrow against any vehicle if it has some value, no matter how small, this means that you might have an old car or a brand-new car or anything in between, as long as youíre the owner of the car and the car has insurance and tax then youíre be able to get a loan against the cars value.
If you have a vintage car or a sports car then the money that you can get for your car will be greater because the cars value is more, you donít have to take out the loan for the full value of your car if you donít need that extra money as youíre be making loan repayments on the money you borrow, so less loan repayments means the loan will be cheaper.
Your need to make sure that you are the owner of your car and not a finance company, if your making weekly or monthly payments to the place where you purchased your car then chances are that you purchased your car on credit and have not finished paying for your car, so if youíre not the owner yet because the legal owner is the finance company until the loan is paid off, then youíre be unable to take out a loan on your car until the other finance is paid off.