Lending Using Your Vehicle

Money worries can trouble us all. There is no telling when an unexpected incident can lead to financial difficulty. This can be anything from medical expenses, to a loss of job, to an essential home repair. Not everybody has money saved up for a rainy day and thus they have to borrow cash if they are to meet the bills in their way.
Photo Credit

The good news is that help is at hand. There are lots of different ways to lend money in the present day. From payday loans, to secured loans, to bank loans; the options are endless. Thus there is every chance you will be able to find a loan that suits you in terms of how much you can lend and how much you have to pay back.

One extremely popular choice of lending at present is a logbook loan. There are many reasons why individuals are choosing this as their loan of choice. You have the potential to borrow a decent amount of money, usually around 70 per cent of your car’s current worth. Therefore, this is a small-scale loan. If you are having big problems, you should turn to chapter 13 bankruptcy lawyers. If you search around you will be able to find a company with favourable repayment terms. A lot of lenders offer you a select period of time without having to pay anything back. Furthermore, in comparison to other types of loans, logbook loans receive praise when it comes to eligibility.

This of course does not mean that simply anyone can benefit from this type of loan. However, logbook loans are not as stringent as other methods of lending. Therefore, let’s delve deeper into some of the criteria you will likely need to meet if you want your application approved. Firstly, you will certainly need to be 18 years of age or older. The vehicle must be registered in your own name. You must also have the vehicle’s log book, as this is what you will have to hand over, and it must be up to date.

In addition to this, the vehicle must be paid for in full. Further requirements that are likely to be requested of you is that the car has comprehensive insurance. It must also be taxed and you will be asked to show the lender that the vehicle has a valid MOT certificate. A lot of companies will also request a maximum mileage amount. For instance, if a vehicle has say over 100,000 miles on the clock then the company will not offer to secure a loan against it.

So far, the points that have been mentioned all relate to the vehicle itself. However, you will be required to prove that you are able to pay back the loan repayments. This may seem like a nuisance to many, yet it is really important. It ensures that you do not end up in a position whereby you are digging yourself into a deeper hole. Therefore, proof of income will be essential.

Depending on the lender you select there may be other demands required of you. Nevertheless, in general, the points that have been mentioned in this article are what you can expect to be asked in order to qualify for a logbook loan.