Why Choose A Logbook Loan?
There are many different ways to go about looking for a loan at this day in age. A Logbook Loan is becoming a more popular choice, but why choose a Logbook Loan? Here are a few reasons why it’s is a better option than others.
A better alternative to Payday Loans
Typical Payday Loan interest rates vary from anywhere between 1,000% and 7,000%, there are more ethical lenders available for a similar service. A Logbook Loan trumps Payday Loans with interest rates that are drastically lower, but with the same ability to offer a loan on the same day.
It is also VERY easy to get a payday loan and fall into the trap of relying on them too much and end up with no way to pay them back. A loan against your car is a much safer method of borrowing money due to the lower rates and the appropriate affordability checks (more on those a little bit below).
Bad Credit history is accepted
One of the main reasons that some people get loan applications rejected is down to a history of bad credit. Logbook Loans don’t take credit history into account due to your car acting as your security, enabling more people the access to the extra cash they are looking for.
This isn’t to say that loans are given out willy-nilly though, affordability checks are carried out to ensure that loans are comfortably repayable. If a stable income can not be proven, a loan is not issued as it would be deemed unethical.
No setup or early repayment fees
It’s frustrating when you sign up for a service and there is an upfront cost just to get going right? Well it’s lucky that another benefit of logbook loans is that there are no setup fees then! There are no admin fees tied to loans either, so it’s even less hassle to obtain a Logbook Loan.
Fortunately, you don’t always have to wait out the full term in order to repay your loan. When agreed to a Logbook Loan with Auto Advance, you have the option to pay off your loan early without any extra cost. Some companies don’t allow this but if you can afford to pay the loan back and you don’t paying anything more on top to settle early, why wait?
No need to sell
Before the possibility of a Logbook Loan, the best way to release the value of your car was simply to sell it. Even that may have taken a bit of time to reach an agreement on a selling price you would be happy with. A Logbook Loan can be given on the same day as the application for the amount requested (or closest we are able to provide), as well as it’s most appealing benefit…
…You keep driving
With other forms of Pawnbroking, you are required to hand over the goods to the lender and they keep possession until the loan is fully repaid.
Logbook Loans are different.
With a Logbook Loan, it is only the Logbook (or V5 registration document) that is handed over, so the actual vehicle is left with the customer, they can still use it as they please and keep driving. When the loan is fully repaid, the owner then receives the Logbook back and has full possession of the vehicle once more.
It should be noted that as with any other form of Pawnbroking, there is risk that comes with the agreement and you could lose the item as a result of failing to keep up with repayments. In the case of a Logbook Loan, the vehicle could be repossessed and sold on.