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Why is a Logbook Loan the Optimum Way to Use Your Car's Value?

A logbook, or V5 loan, is one of the newest financial products hitting the financial market in the United Kingdom. In fact, over here, a lot of people are applying with logbook lenders in order to solve one financial problem or other. This can be anything from piled-up bills, to paying for wedding services.

A logbook loan is a secured type of loan. As a collateral, the borrower will have to put his or her logbook document and leave it with the lending company until the loan has been repaid in full. This means that the borrower will still be allowed to use the vehicle, but during the loan duration, the car can be at any time repossessed by the lender if the borrower defaults on repayments.

Of course, this is exactly why many people are still reluctant to deal with this kind of loan. The risk of having someone take away your car is too much for many. This document, after all, contains all the information about registration, insurance details and more about the car. Without it, you can't do much with the car, except drive it, put gas in it and change the oil. You can't sell it and you won't be able to get it to maintenance either.

However, even this shouldn't be too much of a problem if you are just diligent in making your repayments. Besides, if you have a problem with bad credit, taking this loan can be just what you need to solve some short-term cash issues.

A logbook loan amount can go as high as 50,000. Of course, for this amount, your car needs to be a very good model and relatively new. The amount of money that you can borrow is determined on how old (no more than 10 years) and how good (model, condition...) your car is. The newer the car and the better the model, the more money you can borrow.

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