Car logbook loans
As we all know the credit crunch has hit as a result of the US sub prime mortgage crisis and restrictions between inter bank lending. As a result many UK residences are finding it harder than ever to source a loan and this situation is magnified if you are one of the hundreds of thousands of people who have a low credit rating.
One sector of sub prime loans in the UK has retained the ability to offer sub prime term loans, due to the nature of their business.
Car log book loans allow customers with no credit score to take a loan against the equity or value they have in their second hand car. To take advantage the person must own the car outright (e.g. it must not be lsubject to any finance arrangements) and have the ability to make the repayments. As security on the loan the car log book loan company hold the customers log book until the loan has been repaid in full. If a customer defaults on their loan repayments the loan company will then make arrangements to cease the vehicle.
Even though the lending criteria this sector has not changed as a result of the credit crunch second hand car values have dropped considerably. Becuase of this many companies are reporting a decrease in turnover as aloans are only made based on a percentage of the current market value for the car.
Car log book loans can be granted against any car with a value in excess of £500 and we have heard of £50,000 plus luxury carsbeing used as security.
Finally don't expect this service to be cheap, log book loan operators charge very high interest and this form of financing has always been a ''last change saloon'' for people who have run out of options.
My Fast Cash Loans 07th Oct 2008
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