Log Book Loan Defaults Rising
Should you be looking for another way to raise some much needed cash in a hurry and have been put off using a payday loan company due to interest rates being quite excessive, then a Log Book Loan may be a viable alternative.
Log Book Loans are loans on which you are giving your vehicle up as security of the loan, however if you do wish to utilize the services of such a company then the car has to be owned by you and there must be no outstanding finance owed on the vehicle.
When you are interested in taking out a log book loan then you need to take your vehicle along with all associated paperwork of that vehicle plus several forms of identification to a local office, and whilst there they will inspect your vehicle and all associated paper work and will make you an offer of an instant cash loan there and then on the spot.
If you decide to take them up on the offer you will then have to sign a bill of sale which basically sees you keeping the car to use but the Log Book Loan company will own the car should you fail to keep repay the original loan.
However, we are aware of many people taking out log book loans and then when before the loan is due to be repaid they will sell the car on to another person! This then means that the person who has purchased the car is not legally the owner of that vehicle, even though the have paid for it, it is in fact the Log Book Loan company who own the car.
This could result in the Log book Loan company then sending out recovery agents to repossess the car form the person who bought it, and even though that person may have a full receipt for the vehicle they do not own the car and will risk losing it should the original loan not be repaid there and then by either the person who took out the loan or the new owner of that vehicle.
With this in mind if you are every in a position where you need to use the services of a Log Book Loan company then you should never try and sell on the car as that is a criminal act or at the very least an act that could see you being taken to civil court, and if you are in the market for a new car then always make sure you do a full HPI check on that vehicle to double check whether there is any outstanding finance owed on that vehicle, and if there is then do not buy that car as you will risk losing it if the loan taken out against it is not cleared in full!
Do think long and hard about taking out one of these types loans as you do run the very real risk of losing your vehicle should you find, for whatever reason, you are unable to make the repayments as arranged!