What Logbook Loans have to say about Price Comparison sites
Logbook loans reveal all…
When money is tight many people think about taking out a loan. Loans that are becoming increasingly well known are called Logbook Loans. A logbook loan is secured against your vehicle. The lender holds onto your logbook (V5 document) for the duration of the loan but you have full use of the vehicle and the logbook is returned to you when you finish paying off the loan.
But how can you find the best deal? The obvious thing to do in many people’s’ minds is to check out a price comparison website. Consumers expect these sites to be fair and objective, and present information on different suppliers – and costs – of Logbook Loans. However, it is not quite that straightforward!
Over the past 15 years there has been a huge growth of price comparison websites. They have transformed the way we shop around for everything from utilities to insurance, to mobile phones and holidays. Comparing prices has become big business. But that is exactly what they are: a business. Most comparison sites make the majority of their money from commission from companies for passing along custom.
What many consumers are not aware of is that companies will bid money to be included on the price comparison site and to rank higher in the listings. Comparison sites do not always make it clear when they are only giving priority to deals they get paid to offer and not the whole market. This means that there may be other deals that are in fact better but are not featured on the comparison site because they have not bid for a place.
The practices of price comparison sites in the UK are coming under increasing scrutiny. Last summer a Channel 4 Dispatches programme looked at savings accounts listed by comparison websites Go Compare, MoneySupermarket, Confused.com and Compare the Market. You would expect the same best deals to appear on all these websites but instead Dispatches found “a huge variation both in the number of accounts the comparison sites found – and in their best interest rates”. They claimed that Confused.com listed just ten savings accounts from eight companies that it seems to have deals with.
Anna Bowes, of Savings Champion, an organisation that claims to offer independent savings advice, said: “There’s a huge disparity in terms of the information and the savings accounts that are monitored by comparison sites. There may be some cases where there are commercial arrangements – they’re promoting products that earn that comparison site some money rather than promoting all accounts.”
So if you are using a price comparison site to look at the best deals on logbook loans, do exercise caution. Compare results from several price comparison sites before choosing which product to take out, and also search directly for other companies that do not appear on comparison websites because they don’t subscribe to them.
Also make sure that you are comparing all aspects of the logbook loan. As well as the APR this should include the length and flexibility of repayments and whether there are additional charges to set up the loan or for early repayment of the loan.
At Logbook Loans we offer loans up to £50000 with flexible repayment terms ranging from 12 months to 36 months. We can pay you in cash up to £5,000 in our branches or transfer sums between £5,000 and £50,000 into your bank account and can usually pay you on the same day you apply for a loan. We do not charge any set up fees when you take out the loan, and you can pay off the loan as early as you like.
If you do decide that a logbook loan is right for you then find a lender whom you can trust to treat you fairly and with respect. Check the company’s customer reviews to find out the experience of others and also ensure that they are fully authorised by the Financial Conduct Authority. Above all, don’t just rely on a price comparison website for information but make sure that you do your own research thoroughly to get the best logbook loan for your needs.