Can You Borrow Against Your Car?

Posted by Ben Davidson about 10 months ago
In the current day and age there is a wealth of different ways whereby you can borrow money. Nevertheless, a lot of these loans have strict eligibility criteria and thus in the grand scheme of things a lot of individuals are actually left with very few options. 

However, there is a type of loan which is highly recommended and is booming in popularity, nevertheless there are still quite a lot of people who do not know about it. The loan being referred to is a logbook loan and it is something which has come to the rescue of a lot of people.

What are logbook loans? This is a type of loan whereby you borrow money and it is secured against your vehicle. This does not mean that you have no use of your car whilst you lend the money; it simply means that if you default on your payments then the loan company can take your vehicle instead.

This is a type of loan which is more suited to those looking for a quick and short term based solution. Therefore if you are looking for a very long term based solution then this is unlikely to be the option for you. However, if you need something to tide you over for a couple of months or so, then a logbook loan can do just that.

Can you borrow any amount of money you like? Unfortunately, the answer to that question is no. If you have an old and rather low market car then you are not going to be able to borrow £50,000 as the loan company will not feel substantially covered. Instead, how much money you can borrow depends on the market value of your vehicle. Improvements, such as those at https://autonews.center/automotive-tips-advice/top-10-catalytic-converter-cleaners/, are not often included in the cost, but this can differ, so it’s worth enquiring.

You may be wondering how your car is going to secure the money you borrow if you still have access to it. Well, the company in question will take certain documents and alike to ensure that they have the required level of security. What you get asked for will differ from company to company, nevertheless some of the most popular options are as follow; a spare set of car keys, your logbook, vehicle documents, and alike.

As mentioned earlier, logbook loans are well suited to individuals who require quick cash, as well as those who only require lending money for a rather short period of time. In addition to this, this type of loan is suited to those who are unable to do a credit referencing or check, or those who simply have a bad credit rating. After all, when going down the traditional route for a loan you will have to undergo a credit check and this proves to be highly problematic for a lot of individuals.

And finally, there are a couple of particulars regarding eligibility which you need to be aware of. When applying for a logbook loan you must be over the age of 18 years old. In addition to this, most companies will only lend you money if your car is totally free of any finance. 

All things considered, a logbook loan is a great alternative for borrowing money, especially for individuals who want a quick cash loan and for those who have a bad credit rating. Nevertheless, you must be 18 years old and it is likely you will need a finance free vehicle in order to be eligible.
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