Can I use any car as collateral to take out a logbook loan?
Well, there is indeed no restriction on the type or model of the car really. You are open to using even a motorcycle or a truck if you so wish. However, the type of car you set up as collateral should be one that is in good condition, fully insured and undergoes maintenance regularly. In addition to that, the car should not be older than 10 years on the road.
What determines the maximum amount I can apply for under a logbook loan?
The maximum amount of money you are entitled to when applying for a logbook loan is determined by a number of factors. For one, you need to note that we can only advance you up to 50% of your current car value. What this essentially means is that if your car is currently worth 50000 pounds, you are only qualified to apply for 25000 pounds or less as a loan. Secondly, your monthly income also plays a role in determining how much we can actually advance to you. It would be foolhardy to approve a given amount if your monthly income is not sufficient enough to cover monthly repayments.
Can I be considered for a logbook loan even though I have a history of arrears?
Yes. It doesn’t matter whether you have a history of CCJ’s, a history of arrears or a history of defaults. You will find homage and accommodation in logbook loans irrespective of how poor your credit score is. In other words, the state of your credit score is of no consequence when applying for a logbook loan with us.
Can I apply for a logbook loan even though I am not in employment?
We need you to be earning some form of income before we can consider you for a logbook loan. As such, if you are not in any gainful employment, working part time or in self-employment, we are sorry but we can’t accept your application for a logbook loan. We need assurance that you can meet your monthly obligations and if you are not in employment, it puts us in a rather awkward position.
Do you accept vintage or classic cars older than 10 years as collateral?
While the rule of thumb is that all cars set up as collateral need to be less than 10 years on the road, there are instances when we might accept vintage or classic cars older than 10 years provided that they are in good condition. However, this is on a car to car basis which means we reserve the right to the type of vintage car we might accept as collateral.
What are some of the circumstances under which you might be forced to decline my application?
It should be noted that we endeavour to approve every logbook loan application we receive. However, there are instances when we might be forced to reject your application. The first and foremost is when the car you set up as collateral is unroadworthy or rather in very bad shape. Secondly, if you ask for an amount that exceeds half the price of your current car value, we will have no choice but to decline your application. Thirdly, if your car is not comprehensively insured, your application will not go through. Last but not least, you need to be truthful and provide accurate information on your application forms. Wrongful information will lead to direct rejection.