Car logbook loans have increased in popularity over the past few years. This is a loan that is secured against your vehicle. You will have to hand over your vehicle’s logbook and when you have repaid the loan in full you will be given it back. However, if you fail to meet the repayments the company has the right to take your car from you. But, what are the benefits associated with going for this type of loan over the other lending options available nowadays? Let’s find out…
Borrow what you need
Logbook loans do not present you with the opportunity to lend extortionate amounts of money, yet you will be able to borrow more than what you would with a payday loan for example (of course this is dependent on your vehicle’s worth). Nevertheless, the great thing about it is that you borrow in relation to the value of your vehicle. You also have to prove you are able to make the repayments. This ensures the room for error or trouble is minimised dramatically.
Easy to understand
One of the major problems with many lending options in the modern day is that they are far too confusing. Thus, people don’t go for the loan in question because they don’t fully understand it and consequently they worry that they are going to end up in hotter water because they have misunderstood the repayment terms. The great thing about logbook loans is that they are pretty easy to understand. You can borrow up to a percentage of your vehicle’s current worth and then you and the lender will agree on your repayment terms between one and other. If you pay back the loan you get your logbook back, if you don’t pay back the loan they can take your car – it is as simple as that.
Possibility to receive the cash quickly
There are a lot of logbook loan companies who stand out from the crowd because of their efficient way of handling the process entailed. Obviously you will need to submit your application and this will have to be assessed thoroughly. However, once your application has been approved there are a lot of lenders who will ensure you receive the money in your bank account within a mere few hours. This can be extremely beneficial.
Collateral still in your possession
The great thing about a logbook loan is the fact that although your vehicle is the collateral it is still going to be in your hands to use as you would have prior to lending money. As long as you make the repayments this will not change. You can still buy new cars from the likes of Chrender during your loan period too. This means you can still carry on with your daily routine and not have to worry about your life being effected in this way.
Favourable eligibility criteria
Last but not least, one of the main reasons so many people turn to car logbook loans is because of the eligibility criteria set in place. This does not mean that any Tom, Dick or Harry can get a logbook loan. Furthermore, all lenders have different requirements. Nevertheless, the general eligibility criteria is pretty straight forward. You must be over 18 years old, the vehicle must be registered in your name and paid in full, and you must prove you can make the repayments.