It’s not unusual for emergencies to arise that people simply don’t have the money to pay for. When these things happen, people often go in search of lending sources and stumble upon logbook loans. A logbook lender is a person who will loan you money based on the value of your car. In return for the cash you receive, you must hand your logbook over to your lender. In the event that you fail to repay your loan, your lender has the legal right to take possession of your car.
While logbook loans can be expensive, they are often one of the best sources for instant cash. If you are in the market for this type of loan, it is important to consider the value of your vehicle before you decide how much money to apply for. Here are four ways that your car can affect the amount of money you receive:
1. The Newer, the Better
In order to receive a logbook loan, your car must be eight years old or newer. While you may be in love with your 15 year-old car, chances are that your lender won’t be able to sell it if you default on your loan. Keep in mind that your lender will be using your vehicle to recoup his losses; if your car is more than eight years old, it will be virtually useless to your lender.
2. Keep it Clean
If you want to get the most money out of your vehicle when it comes to a logbook loan, make sure that your car is clean both inside and out. If your dog is a frequent passenger, make sure that you remove all of the hair from your seats. If you smoke, make sure that you use a deodorizer to remove the smell of cigarettes from the interior. The amount of money that you are offered correlates directly with the tidiness of your vehicle; make sure that it is spotless before you present it to your lender for any inspection requested.
3. Keep it Fit
If your car isn’t running, or will need major repair work to make it road-worthy, no lender will be willing to accept it as collateral. In order to use your vehicle to secure a loan, it must have passed its latest MOT test. You should also be sure that any minor repairs, both cosmetic and functional, are completed prior to attempting to secure a logbook loan.
4. Make Timely Payments
In order for you to qualify for a logbook loan, your vehicle not only must be paid off, but you must be current on all of your insurance premiums and tax payments. If you aren’t current on your payment, make sure you catch them up before you apply for your loan. You will also be responsible for making timely premium and tax payments while your loan contract is active.
If you are considering taking out a logbook loan, make sure that your car is valuable enough for you to qualify for the loan. By following the tips above, you can be sure that you will be approved for this type of loan in a matter of minutes.
Michael Coffield blogs about different loan options. Are you eligible for a log book loan? Michael recommends that you find out more here if you are interested in securing one.