Logbook Loans – A Great Way to Get Fast Cash

Whilst the global financial crisis has affected consumer confidence and is still quite fragile, the loan’s market has reacted by offering a new variety of secured loans, called logbook loans. As the financial sector emerges from the current crisis, secured lending has been a popular choice amongst many consumers, offering a low risk alternative to short term cash loans.

What are Logbook Loans?

The logbook is the vehicle’s legal document, which is owned by a borrower and contains details such as the engine number, vehicle registration and the owner’s name. A logbook loan is offered based on the borrower using their vehicle as security.

How Do I Apply For A Logbook loan?

In order to apply for a logbook loan, there are a few basic requirements for the borrower:

• The vehicle must be in the borrower’s name.
• The borrower should be in full time employment and provide proof of regular income and residency.
• The vehicle should be less than eight years old, unless it’s a classic car.
• The vehicle must be fully taxed and insured.
• The vehicle should not have any outstanding finance or existing car loans.

How Does It Work?

A logbook lender may offer a loan up to 75% (or more) of the trade value of the vehicle. When the borrower is approved, a credit agreement is signed, and a bill of sale is issued, which temporarily transfers the vehicle’s ownership to the lender (i.e. the lender has the right to take possession of the car if the borrower falls behind with loan repayments). The borrower then receives their cash loan.

The lender retains the vehicle’s original log book (or V5 registration document), which includes detailed information about the vehicle and it’s owner. If the borrower fails in his or her obligations in maintaining loan payments, most reputable logbook lenders will allow them to negotiate a flexible repayment plan.

If the borrower fails to repay the loan or agree to a repayment plan, the lender may take possession of the vehicle, which may later be sold at auction. The lender will receive any shortfall between the sale price and current loan’s balance, from the vehicle’s sale.

Logbook Loans - The Advantages

Logbook loans give borrower’s fast cash when they need it the most, in a fully transparent transaction. The borrower needs to complete a loan application form to prove that they have a regular income and can maintain regular payments.

The logbook loan company does not carry out credit checks, so a person with a poor credit record, bankruptcy, arrears or with County Court Judgment against them can also apply for up to £50,000 over a period of 5 to 7 years.

Apply now for car logbook loan online at Logbook loans UK, and get the cash that you need today.