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Eaffy Logbook Loans Get Loan Against Your Car

Author: Andrew Edmonds
by Andrew Edmonds
Posted: Dec 07, 2016

Eaffy Logbook loans have become a lot more popular as a source of short term finance for people with bad credit of late but there are still some people who don’t know that much about this new finance option.

History of Logbook LoansLogbook loans have been around since the late 1990s in the UK. They’re also common in the US where they’re known as Car Title Loans and where it’s estimated that there are over 7000 lenders lending some $1.6 billion of loans.Needless to say the numbers are somewhat smaller in the UK but there are still a number of Logbook loans lenders in this country and, as you’d expect, some are better than others.The loans have been the subject of some bad publicity that mainly revolves around cars being repossessed and clearly this is a danger for a facility that is secured against a car. Whilst there are always two sides to the argument and the lenders will say that the publicity has been generated by people who never intended to repay in the first place, there are clearly lessons that can be learned on both sides.The main lesson is that ability to repay is the key to a logbook loan and if you don’t have repayment options then don’t take out a logbook loan in the hope that something turns up.

How Logbook Loans Work – The Legal Stuff

Logbook loans are based on a 19th Century legal document called a Bill of Sale. Through this a borrower (known in the Bill of Sale as the "seller") evidences that he or she has sold the vehicle on a specific date and at a specific location to the lender (purchaser) for value received (the loan).The Bill of Sale is held as collateral security for the loan and is only enforced if the loan terms are breached.Technically the Bill of Sale means that the logbook lender is the owner of your car while the loan is outstanding and the Bill of Sale is registered with the High Court in London for their protection.

How Much Can I Borrow With A Logbook Loan?Well firstly you’re limited by your ability to repay the loan but assuming the repayment source is clear…Secondly you’ll be limited by the value of your car with a maximum ceiling of 50% of the value. If you’re dealing with a reputable loan company you should be able to agree on a mutually acceptable valuer to get a fair valuation.Finally there are limits on the amount the loan company will advance with a minimum of £250 up to a maximum of £50,000 (yes people with very expensive cars need finance urgently as well!).

How Logbook Loans Work – The Practical StuffYou’ve got a vehicle (could be a car, motorbike, motor caravan, van or small commercial) with no finance and you want a logbook loan. So how do you go about it?Firstly you have a choice to fill in an on-line form or telephone the logbook loan company. In either case the process should take no more than a couple of minutes. Everything at this stage is without obligation of course and there will be no fees to pay.If you fill in the form the lender will call you back shortly afterwards and you can discuss your needs there and then. The lender will then outline an offer to you.

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Get Guaranteed Loans for Any Purpose http://www.easyloanshub.co.uk/guaranteed-loans-uk.php

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Author: Andrew Edmonds

Andrew Edmonds

Member since: Sep 07, 2016
Published articles: 35

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