We all understand normal loans and the procedure involved but hardly anything on Logbook loans. Through the Bills of Sales Act, where a loan can be secured using a property or asset that can be sold once a borrower has defaulted payments, logbooks come in handy. In case of a shortfall after an item has been sold, it is allowed for the loaner to approach the borrower to meet the difference. It is easily performed without seeking a court order. While there are many ways the Act is brought into play, borrowing of money and using your car as collateral is very common. It is worth noticing logbook loans have a higher interest but are loaded with lots of benefits that make the interest a negligible part of the process.
Quick cash when needed
Every person requires some form of cash time and again especially in this difficult financial times. Lots of individuals are always facing situations requiring some quick cash such as emergency situations. Credit cards might be available but the amount you will pay eventually makes the use of such cards very expensive due to the nature of interest rates on them clearly prohibitive. This is why the logbook loan is a much better alternative to raise the money you need fast. A logbook loan is typically given as per the value of the vehicle especially because it is very easy to get the amount of funds you wanted just to cater for the most pressing needs that cannot wait.
Security is retained
In most of the pawnbrokers out there, a vehicle given against a loan remains in their hands until the loan has been repaid. This is not exactly what happens with a logbook loan; the lender allows the car to remain with the borrower as far as he or she is making regular payments as agreed in the contractual terms. It means you will still be using your vehicle while carrying out your daily duties. If you use the car to run to work or rush the kids to school, logbook loan will ensure you are doing the same while repaying the money as agreed.
Desired loan amount borrowing
After applying for a logbook type of loan, there is no need of asking for a monetary amount you hardly need. Most bank loans today have borrowers applying even for loan amounts way above what is required. By taking a minimum loan, the amount required, you will be able to easily and quickly repay the loan at a lesser interest. In fact, you will find the amount of the loan approved is usually equal to the car value.
Short loan access period
We all detest bank loans and others demanding a long period of time and very painstaking to meet. The applying process of a bank loan is usually intrusive and receiving a decision or feedback takes time. However, a logbook loan is quick and easy to apply and no awkward queries will be thrown your way. The vehicle will be delivered to the loan company for inspection and paperwork and after an application has been accepted almost immediately, you simply drive away with the money you wanted.
Benson is a auto consultant who deals in old and new car in bristol. He occasionally logs on to Auto Forums to read and discuss about the latest in the world of Auto. He recently blogged about Logbook loans and how it can help to raise funds when in need against your car.