One of the biggest mistakes people make when taking out a loan against their car is they fail to do enough research and ask enough questions. Instead, they see the amount of money they can lend, and they sign the contract. This can lead to huge issues. You need to be certain that you know the terms and conditions of the contract like the back of your hand. You also must ask the company any questions you may have. You should only sign the contract when you are one hundred per cent clued up on the logbook loan and the part you have to play. To help ensure this is the case, read on to discover some of the key questions you need to ask any lender…
“Can I keep my car?” – Let’s begin with the most obvious and straight forward question of them all. Can you keep your car? You may be wondering what the value of asking this question is. After all, with any type of authentic logbook loan you have full access to your vehicle. The lender only has the right to take your car if you fail to make the repayments you have agreed to. Nonetheless, you should still ask the question. You want to ensure you are going for a genuine lender. Moreover, getting a clear picture regarding when your car can be taken from you is highly important to ensure the situation does not arise. If you have a vehicle that you don’t really need, it would be better looking into selling it for cash. How am I going to sell my broken car? Well, there are actually specialist companies that are in the business of buying broken vehicles, so you should have no trouble here.
“What are the repayment terms?” – This is undoubtedly the most important question you need to ask. You need to be sure you are going to be capable of making the repayments. If you are unable to, you are going to find yourself in a worse position than you were before you took out the loan against your vehicle. So, firstly you should determine how much you are going to have to pay back, as you will obviously need to pay more than you borrowed. Moreover, you should figure out how the repayments are going to be made. How long do you have to pay back the loan? Are you going to pay it back on a monthly basis? When does the first repayment need to be made? This is pivotal. Everyone is different and thus whilst the repayment terms may suit one person they may not suit you. There are many lenders out there and you should be able to find terms you are happy with. Don’t accept unless you are one hundred per cent confident you can successfully pay back the loan.
“How long will it take to receive the loan?” – This is the third and final important question you need to ask. After all, if you find yourself in a situation whereby you need to borrow money, it is likely that you will require it as soon as possible. It is crucial to point out that lenders cannot promise to accept your application in a set period of time. All applications are different and thus some can take longer to evaluate than others. However, they promise to deposit the money in your bank within a set period of time once you have been accepted. Thus this is something you should bear in mind.