Don't Get Tricked When Purchasing A Second Hand Vehicle |
||||
| By Julian Cook |
||||
| A recent report has been looking into claims that several
vehicle owners are taking out loans guaranteed against their
cars and selling them before settling their accounts,
leaving the subsequent car owners with the debts. Due to
this, Trading Standards are calling for logbook loans to be
banned. So, exactly what are logbook loans and how do they work? Logbook Loans Logbook loans are a fast and simple way to borrow money. People are able to take out bigger loans at a lowered interest because they´re guaranteed against your car or other vehicle. The amount you are able to borrow all depends on the worth of your car. As an example - if your car is valued at about 3,000 GBP, you would most likely be in a position to borrow about 2,000 pounds. It´s normally around 75% of the value of your vehicle, but it really comes down to the loan provider that you go with. A feature that is a feature of these loans is that the lender will keep hold of the cars´ logbook up until the borrowed money is paid back. This is why it is important to be sure that when buying a pre-owned car, you check it has its logbook along with it, as its absence may well be an indication that it has unsettled debts against it. Why Do Consumers Opt for Logbook Loans? . They are an alternative for individuals who have bad credit. . Using a vehicle for security, means that it is possible to borrow significantly more than would be possible with a payday cash advance. . Depending upon when you apply, a logbook loan will normally be authorised and payment received on the same day. . As your car is used as security of your loan, your interest is significantly less than that of other short-term loans such as cash advance loans. The interest is around 10% a month compared to around 25% for a normal payday loan. As with any sort of loan, you will find good and bad things to think about and there are always risks. It is not a good idea to borrow any cash if you do not think that you will be able to pay it back. How To Prevent Getting Caught Out When Buying An Used Car . Be sure that you don´t buy any car without its logbook. As the logbooks are utilised as security for the loans, if your car doesn´t have one, it could imply that not only is there owing finance on the vehicle, it technically doesn´t belong to you as the loans company will have your V5 registration papers. . Another strategy to be sure your car is up to standard, is to get a complete car check. In addition to any over due finance or loans taken out against your car, it will also see if it had been stolen in the past, been written off, had any mileage troubles or had any plate transfers etc. So, who knows what the future holds for logbook loans, but for now, make sure to be wary when purchasing a second hand car, and if it doesn´t have its logbook, it will probably be best not to go ahead with the sale. |
||||
| Article Source: http://interpret.zar.vg | ||||
| About The Author A front runner in the bad credit loans market, Logbook offers fast and easy cash loans secured against your vehicle, for those people who need it the most all over the United Kingdom. For more information on car log book loans, visit logbook loans to find a branch near you. |
||||
|
||||
| © 2012 interpret.zar.vg |
