Welcome to Mission Loans
What are logbook loans?
Simply put, a logbook loan is basically a loan taken with your vehicle as security. The lender owns your vehicle until you pay the loan back. The amount of money you can borrow highly depends on the value of your vehicle; the higher the value, the more money you can borrow.
How do logbook loans work?
On taking the loan, you are required to give the lender your logbook or vehicle registration document which proves that you own the vehicle, but this is purely symbolic and does not have any legal implications.
Although the lender temporarily owns your vehicle, you can keep using it so long as youíre repaying the loan. When you successfully repay the loan, you automatically regain ownership of your vehicle. However, if you default the repayment, the logbook lender can seize your vehicle and sell it to repay the loan. This can be done even without a court order because at the beginning of the transaction you will be expected to sign a document known as a ĎBill of saleí. This document gives the lender legal right to seize your vehicle.
Here are some of the benefits of taking a logbook loan with us.
- Youíll be getting quick cash in a matter of hours. Whether you credit score is tainted or not doesnít affect your eligibility for a logbook loan. If you really need the cash urgently, then logbooks are the way to go.
- Logbook loans also donít have a tedious process attached to them. They are not only simple to acquire, but also a lot less complicated as compared to traditional loans. Itís a lot easier to go through the document without the help of a lawyer.
- You can borrow as much as your vehicles worth with these loans. Starting a business with a bad credit score would really limit your capabilities of getting adequate cash. But if youíve got a singing and dancing sports car, you can even borrow up to £50,000.
- Logbook loans can build your creditworthiness. They are a form of credit and the payment activity would therefore reflect on your credit report. If youíve got tainted score, then you can use these loans as a means of getting back on track. Simply pay your loans early and on time.
The risks involved
But a logbook loan is not all milk and candy. If you really need a quick loan, below are some of the risks incurred that you should be aware of:
- The most obvious risk that you are exposed to is losing your vehicle should you default the repayment of the loan.
- Another problem with logbook loans is that they stay attached to the vehicle regardless of whether the car is sold to another owner. If a person buys a second-hand car with a loan attached to it, there is nothing to stop the lender from repossessing the vehicle. To avoid being saddled with someone elseís debts, always ask for the original vehicle registration document not a photocopy. If the seller canít produce one, this may be because the vehicle has debts attached to it.
- Logbook loans can be very expensive. These loans have a higher interest rate than the traditional lending institutions. Higher costs are also incurred if you take a long time to repay the loan as compared to paying for a short period. You should also watch out for hidden charges associated with late payment.