What are Logbook Loans?
These are loans that use your car as security. So the loan company basically owns your vehicle until you have paid back all the money you owe them. In the interim, you are able to have full use of your car. Once you take out a logbook loan, you will be asked to hand over your logbook or vehicle registration document. There after you will have to sign an agreement called a ‘Bill of Sale’, which basically says that your vehicle can be repossessed if you do not pay back the loan. Now, this bill of sale document must be registered with the high court in order for the lender to repossess your vehicle, otherwise, they will need approval from the court before repossessing your vehicle.
Age 18+ UK Resident Own a Vehicle Vehicle Model Year 2008 or Newer Vehicle Should be Free of Finance
If you meet the requirements you could get a loan!
Fill the form below to get a QUOTE!
Money Delivered Fast – Same Day! No Admin or Setup Fee Bad Credit Considered Can Borrow £200 to £50,000
Need cash in a hurry? You get cash the same day!
And you keep your vehicle!
How is the Loan Amount Determined?
These loans are becoming more popular with people who are seeking loans, as it allows you to borrow anywhere from £250 – £50000, depending on the value of your car and of course, your affordability. This works in much the same way as if you where taking a loan against your house. Just as you would provide ownership deeds for your house, you provide the logbook as proof of ownership, with your car.
You must be the legal owner of the car. Which means that the logbook has to be in your name in order to qualify for the loan. This minimizes the risk of people getting their hands on the logbooks of others and using it to get loans. The probability is that these unethical people will not pay back the loan and the unsuspecting vehicle owner will suffer the unfortunate incident of his vehicle being repossessed.
The Age of your Car
Many companies also place a limitation on the age of the car, they will lend money against. Most of them will only accept cars between eight to ten years and will not accept any vehicle that’s older. This is purely because the value of a car depreciates the older it gets. The probability of breakdowns and damages on older cars are also more likely with older vehicles. Therefore, logbook loans work best with newer models of cars. However, when it comes to logbook loans in Belfast, you may speak to a friendly consultant who will be able to give you more clarity on this aspect of the logbook loans.
Credit Checks with Logbook Loans in Belfast
Lenders use your car as security and in the event that you default on your loan repayments or choose to not pay them back, they will simply repossess your car and recoup their money, in that way.
Unlike a guarantor loan where someone else accepts responsibility on your behalf, should you default on payments, logbook loans simply use your car as the security that they need. This is why in most cases, they will grant a loan amount that is not more than half of the value of your car. This ensure that they will always recoup lost money and also ensures that you can afford to pay them back.
When to Use Logbook Loans
These loans are especially helpful when times are hard. Some people work in industries that lower their hours for a certain part of the year and this means a temporary reduction in income. In other cases, you may have a funeral to prepare or the birth of a new baby to prepare for. No matter what financial crisis you are facing, you should fill out your application on the right side as soon as possible. The sooner you do it, the sooner you can start using your loan on the things you need.
