Car Logbook Loans - Bigger Financing Solution For Bigger Longings
As the name implies car logbook loans are especially provided by pledging the logbook papers of a car
. It is basically meant for those people who certainly own a car and of course for those who are ready to pledge the logbook of their car. In other words, it is a loan amount that is secured on your car.Logbook is a legal document of a car that is provided with the vehicle owned by the borrower. It basically contains the detailed information of the car as in VIN number, current registration mark, engine number along with the owner's name.
However, the lenders also demand for the original documents of a car such as the insurance certificate, MOT certificate, and the V5 registration is held by the credit industry. Here, you are asked to handover these documents into the hands of a lender.
It is followed by a sign by the creditor and the borrower on a bill of sale that legally hands over the ownership of a car from the borrower's hand to the creditor's hands.
Thereafter, the right to possession is transferred into the hands of a lender. Here, at this position the lender becomes the owner of a car but you can use your car simultaneously according to your needs.
However, the borrower is required to maintain some watchful prudence while taking out car logbook loans. The major thing that the borrower is required to do is to always keep up the pace with the repayment period. However, if the borrower falls behind with the repayment period even for once, then the lender could put his/her car at auction in order to cover up the loss. On the other hand, if the vehicle is sold at a amount lower than you actually owe, then you will still be responsible for paying the shortfall.
Here, the borrower could look out for an amount up to 80% (sometimes more) of the trade value of a car. Moreover, since these are costly loans, so it is always advisable to the borrower to attain detailed information from the creditor at the time of seeking loan.
With car logbook loans, the borrower has to face bit higher APRs, it can be actually higher than the APR charged for home credit. Thus, it all more makes it important to not to miss any payments or enter for a default.
However, there are some terms and conditions that are needed to be qualified in order to be eligible for the car logbook loans. The are as follows:
The logbook of a car should be in the name of a borrower.
The pledged car should not be above 8 years old.
The car should not be sided by any due payments and should be cleared from other finances.
The car should be taxed and insured well.
The borrower should be a full time employee and should withdraw handsome salary.
Thereafter, the borrower succeeds with the above requirements, then he/she could easily borrow an amount ranging between 500 to 50000 over a repayment period of 5 to seven years.
Hence, logically speaking car logbook loans are the best way to handle bigger finances.
by: Eve Amelie