Using A Car As Security When Lending

No one likes to be in a position where they need to borrow money. However, this is, unfortunately, happening to an increasing number of people. Nevertheless, there is help at hand for those that are short on cash. There are many different forms of lending money in the present day, and one of the most popular options is a loan secured on a car. This is also known as a logbook loan. 

Essentially, if you are accepted you will generally be allowed to borrow up to 70 percent of your car’s current worth. You still get full access to your vehicle unless you fail to meet the repayments you have agreed to in your contract. This is a solution that appeals to a lot of people. However, it is not right for everyone! Another option, which you should always look into first, is finding a company offering cash for cars. You can get money with no strings attached and you won’t be tied into a loan agreement.

Nonetheless, if you do decide to lend, and you are to truly reap the rewards of this lending option you need to choose a company with care. Here is what you should be looking out for…

Good Reputation – It is pivotal to make sure the company has a positive reputation. What do they have to say about the logbook loan they took out? Was the company easy to deal with? Were they stung by any hidden terms and conditions? This is the best way to find out whether a company is trustworthy or not. Remember to consider the reviews as a whole. Don’t be blinded by one.

Flexibility – Can the company provide you with a loan secured on a car that you are happy with? After all, everyone is different and we all have different monetary needs. The best logbook loan companies are those that are flexible, i.e. they offer various repayment options and alike. This ensures you have a greater chance of benefitting from a loan you are comfortable with. 

Repayment Terms – In fact, the repayment terms are worthy of further elaboration. A lot of people merely consider the amount of money they have been offered and if they are happy with the loan they accept it. However, if you cannot meet the repayment terms you are going to find yourself in an even worse position. Therefore, you need to assess these carefully. Moreover, make sure the company does not have an early settlement fee in place. Some companies actually charge you for making early repayments. 

Application Process – How do you apply for a logbook loan? Most companies give you the option to do this online nowadays. They will tell you everything they require from you and you submit it in one go. This speeds up the process. Of course, there is no telling how long it will take for your loan to be approved. But when lending through traditional means you often suffer from a segmented process. Make sure this does not happen to you.

How Long Before Your Money is Deposited – Last but not least, discover how long it will take for you to receive your money once your application has been approved. There are lots of lenders that promise to send you the money agreed within 24 hours.