Many consider whoever invented the logbook loan a genius and in many ways, that is exactly what they are. They realised that the modern car, just like a house has an intrinsic value. Reasoning that because it had a value it was possible to use it as security was a simple move. Yet when you consider that cars have been part of most families’ life for over 50 years it is a wonder that nobody thought of it sooner.
How a Logbook Loan Works
The way in which a logbook loan works is quite simple. If you have a vehicle that is worth £10,000, you can borrow a large percentage of that ten thousand pounds. Should you not pay your loan back the person you owe the money to gets to take and keep your car. When they sell it, they get back the money that you owe them. Given that there are administration fees involved and that you have to pay interest you cannot borrow the entire £10,000 it has to be a percentage of the cars value. Should somebody lend you the entire value they would not get back what you owe them in fees and interest as well as the money what they lent you when they came to sell your car. In addition, you have to factor in that it can take some time to sell the vehicle and they may not be able to secure the full value of the car. Therefore, you can only borrow a percentage of the value of your vehicle.
Perhaps the best thing about a logbook loan is the fact that you can continue to use your car. The company that you have taken the loan from know that should you miss payments they can simply send a bailiff to pick up your car. They can pick it up from anywhere at any time and do not need access to the keys. Therefore, the risk to the lender of losing their money is minimal. As a result, even people with terrible credit histories can secure a logbook loan. Of course, they have to meet the basic criteria of age and ownership.
If you need a logbook loan visit the Logbook Loans 247 website. We offer one of the fastest logbook loan services available in the UK.
