Top 5 Common Misconceptions About logbook loans!

In the style of Fred Astaire, you say logbookloan, we say logbook loan… But however you say it, a number of misconceptions exist around this alternative cash option.

We help dispel the myths surrounding logbook loans…

Sometimes we believe what we hear without questioning the merit of what we’ve been told. With so much information within our grasp in the Internet Age, a lot of misconceptions are born and can grow into ‘nuggets’ of information which seems make these perceptions truthful.

Credence is built and we forget about where these misconceptions came from, but we still believe them. Remember, paper never refused ink.

And this is no different for logbook loans. People are wary and are unsure about whether they should secure logbookloans because they’ve heard one thing from one friend and a different thing from another friend.

Just like any loan you should aim to become informed about the details. You wouldn’t get a mortgage without checking whether it’s a fixed mortgage or a tracker mortgage. Similarly, read up on logbookloans and inform yourself. Sometimes it’s better to go and find out information for yourself so you feel more comfortable making a decision.

Below are the five most common misconceptions about logbook loans. You could be surprised that you ever believed some of them.

1. My car gets taken away for duration of the loan, doesn’t it?
No, you get to keep your car and continue to enjoy the freedom which this gives you, while also paying back your loan. Logbook loans work on the premise that we take the log book of your car. If you are unable to meet repayments then there is a possibility that you will lose your car. But if you have structured your loan properly you will be able to pay off the loan in the allocated time.

2. I can’t get a loan because I’ve a poor credit rating.
Maybe this happens with your bank, but not with us. We realise that financial slip-ups occur and give you the benefit of the doubt.

Even if you’ve a bad credit history, you may still be eligible for a loan. The best way to find out if you’re eligible is to give us a quick call, or visit one of our 50 stores today.

3. Logbook loan companies are designed to entrap you and eventually take your car
This misconception is a scaremonger’s dream. But you’ll be glad to know that we are not out to acquire your car. On the contrary, we want you to utilise your vehicle – to make it work for you in other words – and if you’ve any questions about the loan as it’s progressing we are always on hand to help inform you.

4. The loan repayments drag on for ages
Not true. You can borrow from as little as £400 up to £50,000 based on the value of your vehicle, for between a 12 and 36 month fixed period, so it’s not like the loans drag on for years and years. But the best bit? All customers have the right to settle their loan at any time. So you sign the contract for 12 – 36 months, but can pay back whenever you’re in position to do so. There are no charges for settling early and depending on how early you settle.

5. The application process takes a long time
This couldn’t be further from the truth. You can secure a loan of up to £5,000 on the same day as your application. Logbook loans can be a good alternative form of finance and can be convenient. You should inform yourself, weigh up your income and the time frame by which you can pay back, then make a decision on which loan is good for you. If you’re still unsure, why not talk to us to see which loan might best fit your needs?

To demystify any other myths surrounding logbook loans, why not check out our FAQ section where you’re sure to find all the answers you need.