Benefits of an online logbook loan
22.06.2022 by Jack H
When it comes to borrowing money, choosing the right type of financial help can be a tricky decision.
Whether it be a loan, credit card, overdraft, mortgage, or pretty much any other form of borrowing – while each option may sound great in principle – they could actually leave you with a lot of things to think about.
From the timescale of borrowing to any potential hidden charges, navigating the world of borrowing can often feel like a bit of a minefield, making it difficult to know which option is right for you. So, we thought we’d try and help.
Here at Loan On Your Car, we have more than thirty years’ worth of experience offering an alternative form of financial assistance to customers throughout the UK, known as a logbook loan.
These loans effectively allow customers to take a proportion of money out against the value of their car, helping them with as much or as little money as they need to get by.
So, if you’ve ever considered taking out one of these deals – or would like to find out more about them – you’re in the right place.
In this article, we will not only be clarifying what logbook loans are, but we will also be highlighting some of the key benefits you can expect along the way.
What is a Logbook Loan?
First things first, as with any type of borrowing, it’s important to really understand what you’re getting into before you sign on any dotted lines. So, if you’re still unclear about what a logbook loan actually is, don’t worry – we’ve got you covered.
If, for instance, you own a vehicle that’s worth approximately £25,000 in terms of market value. Taking out a logbook loan will effectively allow you to borrow any sum worth between £500 and up to 70% of the car’s market value (i.e. £17,500 for this example).
Whether you’re looking to borrow a couple of grand for a post-pandemic holiday of a lifetime, or a quick couple of hundred to repair a broken oven, the amount of money you choose to borrow is entirely up to you and will vary depending on your exact circumstances.
You will also normally have control over how long you decide to borrow the money, setting up a monthly repayment plan for any period between 12 and 60 months.
What are the Terms & Conditions?
As with any type of borrowing, there is a small catch involved. By agreeing to a logbook loan, you will need to hand over your vehicle’s V5 document. This will provide the lender with proof that you actually own the vehicle you are taking the value of the loan out on.
In doing so, you will also be effectively handing over the ownership of your vehicle for however long you decide to make your repayment plan.
Say, for instance, you decide to take out a logbook loan for 12 months. Once you’ve made all of the repayments required of you during that year long period, your V5 document will then be returned to you and the vehicle will belong to you once again.
You’ll still be able to drive the vehicle as normal throughout this period, while also being responsible for its tax, MOT, oil changes, etc. It will simply belong to the lender while you pay back your loan.
What are the Benefits of a Logbook Loan?
As with all types of borrowing, there are a number of advantages and disadvantages to consider before entering into any contract.
However, due to the financial difficulties of recent times, logbook loans are fast becoming a popular option for consumers, offering a great alternative to borrowing from bigger banks that may be unwilling, or even unable, to provide you with the funds you need.
If you still need convincing though, read on below to discover some of the key benefits that taking out a logbook loan could offer:
Logbook Loans Have No Hidden Fees
Whenever you sign up for any kind of credit agreement, there will always be some kind of complicated terms and conditions section outlining a range of hidden fees and additional charges.
Whether it be a time-sensitive interest charge, a late repayment fee, or simply an extra fee for being sent a letter, these hidden charges can quickly mount up, leaving you paying a lot more towards your loan than you’d initially agreed to.
Here at Loan On Your Car, each of our loans doesn’t have any hidden fees or charges. We take the time to make sure you know everything you need to know before you sign any agreement with us, helping keep you up to speed on any possible charges you could incur during your loan.
We understand, after all, how frustrating it can be when other lenders use complicated jargon to confuse consumers. So, we always aim to ensure honesty and openness from the get-go, helping you keep on top of your loan without the fear of any unexpected, additional costs.
Logbook Loans Can Be Settled Early
We get it – some months all can be going well financially, while others can prove a lot more difficult. You can never predict when a boiler might break down, after all, or when you might need to suddenly finance a wedding.
A logbook loan repayment plan can work around you and your finances. Say, for instance, you find that you’re able to pay more than your required balance, here at Loan On Your Car, we won’t charge you for overpaying – in fact, we encourage it.
Likewise, if you are able to pay the entirety of your loan back early, why not? We can't believe that some lenders have the audacity to charge you for doing exactly that, or even penalise you with time limits on when you can or can’t pay.
Here at Loan On Your Car, we take great pride in offering a penalty-free settle early service, allowing you to clear your debt as quickly or as slowly as you would like.
Logbook Loans are Great for Instant Credit
In light of the cost of living crisis, job losses due to the pandemic, and the ongoing fuel hike, it’s safe to say that the current economic landscape is fairly unstable.
As such, applications for the more traditional forms of borrowing – such as taking out a mortgage, business loan or credit card – are not only becoming more difficult to get ahold of in the first place, but they are also taking considerably longer to process if you do.
As a result, this has given rise to the popularity of borrowing that offers instant credit, such as taking out a logbook loan.
And by ‘instant’, we mean it; by deciding to take money out against your car’s value, we can even provide funds to your bank on the very same day as you apply. It really is that quick.
Logbook Loans Can Be Taken Out Online
Talking of quick, applying for a logbook loan online can be done in a matter of minutes, avoiding the need to get together any paperwork, set up an appointment and head to the bank.
Plus, the entire online process is incredibly simple to navigate.
After providing the lender with some simple details like your name, age, address, employment details and monthly income, you will then need to answer a range of questions related to your vehicle.
Then, once your application has been submitted, your request will be reviewed. If accepted, a meeting will then be set up to hand over your vehicle’s V5 document before the money is sent over to you by the lender – potentially even that very same day.
Logbook Loans Are Great for Poor Credit Histories
If you have ever borrowed money in the past and failed to pay it back on time, this will have left you with a poor credit history, making it more difficult to borrow again both now and in the future.
However, have no fear. While this bad credit may put off a number of other lenders, we believe that a poor credit rating shouldn't be a barrier to getting a loan.
It's for this reason why, here at Loan On Your Car, we look beyond soft credit score checks to assess applications, giving everyone a fair chance of sourcing the money they need – regardless of their history.
In fact, we take great pride in helping those with poor credit get back on their feet more quickly, allowing you to prove your ability to make repayments both regularly and on time. You can find out more about this here.
Logbook Loans Don’t Take Your Vehicle Away
Contrary to what some people believe, you will still be able to freely access and drive your vehicle throughout the duration of your loan.
By agreeing to a logbook loan, we won’t simply escort your car off your premises and keep it as collateral. Instead, we will simply take full ownership of the vehicle as a form of insurance, while allowing you to keep using it however you wish.
There are no rules on mileage, travel, making internal upgrades, or anything of the sort. You will be free to use it in any way you like and will retain responsibility for standard charges like road tax, MOTs, roadside assistance and any repair work it might need.
Any form of borrowing will inevitably come with its various risks but, here at Loan On Your Car, we take great pride in the logbook loans we offer to our consumers.
Quick to apply for, with no hidden costs, on a flexible repayment plan that offers instant credit – what’s not to like about that?
For further advice or assistance on taking out a logbook loan with us, click here to find out more about the process.