Use Your Car’s Logbook To Get The Cash That You Need

Whilst owing your own first home in the current climate in the UK is almost next to impossible, owning your own car is certainly not too difficult. Receiving financial assistance in the form of secured loans can give a much needed boost to the level of confidence amongst many people in the current economic crisis.

A vehicle’s logbook is a legal document (sometimes call the V5 vehicle registration document) issued by the DVLA to the vehicle’s owner. It will typically contain the engine and chassis number, current registration number, and the borrower's name. Logbook loans are specifically designed for the vehicle owners, who have the ready availability of the logbook of their car as security.

Logbook loans are usually provided by established financial institutions that offer from 50 to 75% of the trade value of the car. An agreement and bill of sale signed by the vehicle owner which gives temporary ownership of the car to the lender. If the borrower fails to meet the loan repayments, the lender has the right of possession of the car.

To apply for a logbook loan, the MOT, vehicle tax and insurance must fully up to date and in order. If the borrower decides to apply for logbook loans, then they need to check the main terms and conditions that are needed to be taken under consideration as follows:

• The vehicle’s age should less than eight years old.
• The borrower should have a regular source of employed income.
• The vehicle should be completely free of any finance.
• The vehicle should be taxed and insured.

Therefore, if a borrower carries all the above mentioned criteria, then he/she is certainly eligible to enjoy the benefits of a larger logbook loan.

The best feature of logbook loans is that no of credit checks are performed, so even someone with a poor credit rating, such as bankruptcy, CCJ’s, IVA, defaults, etc., could also apply.