Many people do not know the real importance of their car or vehicle. They think that it is just a vehicle to drive from one place to another, they do not know how many other benefits a vehicle has. The biggest benefit is that it can help people in their financial crisis and emergencies needs. Many people know that they can loan money only against their houses or properties which are not true one can also get a loan against their vehicles. There are many types of the loan on car titles but the logbook loan is the easiest and the most beneficial way to get money to your car and the amazing thing is that the vehicle still is the possession of the owner even after getting the loan.
A logbook loan is also known as a V5 loan. It is an old document which has all the important information about the owner and the vehicle such as VIN number and current registration mark. It gets updated with any change in ownership and any other change. This document gets issued from the jurisdiction of Driver and Vehicle Licensing Agency (DVLA). You will have to submit the logbook to the lender for security but you can still keep the vehicle and use it.
Many people have a poor credit report, it means that they have already taken a loan from a bank or other financial companies and haven’t paid it back for any reasons; this type of loans is the most beneficial for those people. There are some requirements to get this loan such as the logbook should be registered in the name of the borrower even if he does not own the car because the borrower will be responsible for any type of complaint against the vehicle or all the taxes. To be eligible for the loan the age of the vehicle should be less than 8 years. The condition also matters when it comes to the getting loan, the car with the good condition will get the loan more easily than a car which has a bad condition. The condition will also matter to decide the minimum amount of loan you can get. Normally one can get a loan from £500-£50,000 but the actual amount that one can get depends on the condition of the vehicle.
The ownership of the vehicle will be transferred to the lender’s name during the time period fixed to return the loan and the borrower can still use it but in case the borrower fails to pay the amount within that fixed time, the lender gets the right to cease the vehicle, there is no need for him to wait for court orders. During the time of installments, the logbook will not have any legal importance.
These types of loans get verified very quickly and there is no need for big documentation. As soon as the lender calculates the amount he can give you vehicle, he will give you the money. This is the best way to get loan against car or any other vehicle. There are other types of secured loans against vehicles too but for that, a person needs too much time to wait and is useless for emergencies.