Using Your Car for a Logbook Loan – What You Need to Know

10 Sep


If you’re of legal age, a resident in the UK and a vehicle owner, you’ve probably heard of logbook loans at one point or another. You might even have considered taking out said loan yourself. It’s easy to avail and quick to process plus it guarantees flexible terms too. There are just some downsides though. Logbook loans are expensive and risky. If you’re thinking of getting one anytime soon, here’s what you need to know about the financial product.

What are logbook loans?

Logbook loans are not your typical car loan. With traditional car loans, you are financing a car purchase. With logbook loans, you are using your car to secure a personal loan. Logbook loans, in other words, are secured personal loans where you put your car as collateral.

Who is it for

Logbook loans are designed specifically for people with bad credit. If you can’t get a personal loan elsewhere because of your bad credit score, resorting to logbook loans is a quick and easy way to get a good handle on your financial needs.

With logbook loans, there are no credit checks involved. That’s one major thing not to worry about when applying for a loan. This also means that processing often takes less time, typically within a day or two. As long as you meet the requirements and have the needed documents handy, you can almost always expect approval for your loan.

You can also use the loan any way you want. From overdue bills to rent payment, home renovation, school tuition and more, a logbook loan can meet a wide variety of personal loans. And you’re welcome to take one out as long as you’re a vehicle owner in the UK.

How much can you borrow?

Because the personal loan is secured against your vehicle, the amount you can borrow is more flexible than if you settled for an unsecured personal loan. At, for example, you can borrow between £500 up to 50,000, which you can use to meet a wide array of financial needs.

The loan amount can be repaid in 12 up to 36 months. Payments can be made weekly or monthly depending on how you want the loan set up.

What are the requirements?

As mentioned, the requirements for a logbook loan are pretty basic and straightforward. One, you must be of legal age, a UK resident and a vehicle owner to be able to avail the loan. Your credit score doesn’t matter since there is no credit check ran on applicants. That means a speedy processing most other time. But to further expedite your loan approval, make sure to prepare the following documents beforehand:
. V5 or logbook document
. MOT certificate
. Insurance details
. Proof of identification
. Proof of billing address
. Proof of stay income whether you’re self-employed, working part time or full time

How risky are logbook loans?

At this point, logbook loans are looking pretty enticing as a quick cash solution to your financial troubles. And they are but with a hitch. In exchange for the fast process and flexible loan amounts, logbook loans are quite expensive. In fact, some experts slam the financial product especially for its steep interest rates. Add to that the risk of vehicle repossession and you have one very high-risk loan option on your hands.

Despite the cost and risks, logbook loan remain a viable loan option. Just remember to follow the simple rule that works every time and that is to borrow only what you need and what you can afford to avoid consequences.

The Best Way to Finance Your Car

27 Jul


Buying a car, whether old or new, is no easy task. There are a lot of things to consider and at the top of the list is financing. If you’re buying a car upfront with cash or your savings then you won’t have to worry about monthly repayments. Unfortunately, only a few people can only afford to go this route.

If you’re like majority of people who want to finance your car purchase, there are many options available and we’ll try to briefly get into them one by one.

Taking out a personal

Most people opt for a personal loan when buying a car. You can borrow from banks or a finance provider. All you need to do is prepare the down payment and use the loan to cover for the rest of the car’s cost. Just make sure not to secure the loan on a major asset like your home. You don’t want to put it at risk of repossession in the event that you can’t repay the loan.

Hire Purchase

Another option is called hire purchase where you may be required to put down a 10% deposit. You will then pay for the rest of the car’s cost through monthly installments from 12 to 60 months depending on how you want it set up. Your dealer typically arranges this type of financing and the loan is secured against your car. This means that you only own the car once full payment has been made.

Personal contract plan

This type of financing is just another version of hire purchase only that the monthly repayments are lower. For this one, you don’t pay for the car outright but instead only pay the difference between the sale price and resale price as per annual mileage. Payments are done over the term of the agreement, typically 12 to 36 months.

Most Economical Cars for 2015

20 Jul


If you check your finances, you’d see that one of the largest expenses you incur each month is for gas. There’s no surprise there considering that most of us use our cars on a daily basis.But just because you have a car doesn’t mean you can’t save on gas.

Whether you’re looking to trade in your old car oryou’re buying a new car for the first time,here are some of the most economical and fuel efficient cars for 2015:

Vauxhall Corsa

This car offers the turbo diesel version against Ford’s Fiesta. It produces a fuel economy high of 85.6mpg and has been a top selling car in Britain. With majority of Britons trusting the car, it sure looked like that the car is a good bet this year.

Volkswagen Golf

Designed to fit a small family, the Volkswagen Golf boast a hatchback design with a super economical 88.3mpg fuel mileage on average. It has five doors and also features a TDI Blue motion so all in all another good bet especially for families.

Kia Rio

Featuring a fuel economy of 88.3 mpg, the Kia Rio 1.1 has also made it to the list. It uses a three-cylinder engine that ensures topnotch and optimized fuel economy thereby a good bet if you want to save money on gas in the long run.

Hyundai i120

Though it has a small engine, it is powerful when it comes to performance. In fact, the Hyundai i120 just like the Kia Rio can average 88.3 mpg in fuel economy.

Peugeot 208

Currently one of the best fuel economy cars from Peugeot is the 208 BlueHDI with fuel economy of 94.1mpg. It’s been dubbed a super green car therefore not only budget-friendly but also eco-friendly.

Volkswagen Polo

Another super green car option you should definitely look into is the Volkswagen Polo with an average fuel economy of 91.1 mpg complimented with low CO2 emissions making it the second car to be included in the list from Volkswagen.

Ford Fiesta

Finally, we have the Ford Fiesta, which is one of the best selling new cars in the UK for 2015.The car’s fuel economy is 85.6mpg making it cost-efficient without sacrificing on performance thanks to its powerful engine.

Tips and Tricks When Trading Your Car

13 Jul


If you’re in the market to trade in your vehicle, there are key things to keep mind. Otherwise you might end up in the losing end of the deal. Remember that dealers are masters of the game. They have plenty of tricks they use to rip customers off during trade ins. To ensure that you won’t get ripped off and instead get the best end of the deal, here are tips and tricks to keep in mind:

Do your homework

First things first, do your homework. That means you should research the value of your car. You can start by going online and check websites that offer free services. You can also check auction sites and look for the same or similar models as your vehicle. Another option and one highly recommended is to go have your vehicle appraised. The key is to take your car to several used car lots for comparisons. When it’s time to visit the dealership, use the high end appraised cost when negotiating with your dealer.

Boost your car’s value

Taking the time to spruce up your car can do wonders for your negotiation. From the inside out, you need to make an effort to present your old car in the best light possible. Don’t worry; you don’t need to spend money for an overhaul. In most cases, all you need to do is thoroughly clean the car. Get rid of smells, garbage, etc. Wash both the inside and the outside of the car. And have the engine tuned up if

Mind the timing

Timing matters too when you’re trading in your old car. Some cars don’t trade in well during winter, for example. Always check the market first and try to find out how your car will fare if you put it in for a trade in today. Again, your research skills will come handy at this point. Get yourself acquainted with current news and trends within the industry and within UK so you know when the right time for trade in will be.

Show off your record

If you diligently maintained your car over the years, use that to your advantage by showing the dealer your records. Dealers naturally want a car that has been properly maintained. With the records to back up your claims, you are essentially telling your dealer that your car is one he shouldn’t pass up on.

Negotiate the deal

When it’s down to negotiating the deal, it’s best to do the new purchase and the trade-in separately. Start by dealing with the trade-in first. Use the aforementioned tips and tricks to increase your car’s trade-in value to get the better end of the deal. Once closed and sealed, the next step is to focus on the new car purchase

How to Properly Maintain Your New Car

6 Jul


You just signed the dotted line and drove off with your brand new car. You couldn’t be happier with your purchase. You did your homework and now your basking in the pleasure of feeling, smelling and driving a car that perfectly suits your needs. If you want to keep enjoying the pleasures for as long as you can, proper car maintenance is the key. Below are some things you can do to properly maintain a new car.

Read the manual

All new cars come complete with its owner’s manuals. If you’re like some people, you’ll probably just stash it somewhere in the house and only remember it when something happens to your car. Don’t go the same route by reading your manual as soon as you get home. In the manual, you’ll find detailed steps and specifics on how to maintain certain systems and functions to get the most value out of your car.

Care for your tires

One of the most important things you’ll find in your owner’s manual is about tire rotation. This is when rubber meets the road. Your car won’t run unless it has tires after all. Even if you car is new, it’s imperative to regularly check and rotate your tires because one, it does not only ensure long life for your car but two, maintained tires means safety on the road. M/p>

Use the right oil

Another regular and routine maintenance to keep in mind is oil changes. By changing your car’s oil regularly, you’re delaying the next visit to the mechanics. Plus the process is easy and inexpensive too. There’s no excuse why procrastinate on this one. To know when to chance your car’s oil, go back to the manual. It will tell you how often you should do this. In any case, the trick to proper car maintenance is to use the right oil. You should find more details on factors such as viscosity, type and even recommended brand on your manual.

Replace your air filters

Another must do for your car maintenance is changing your car’s air filter. Just like tires, air
filters wore out over time hence needs regular changing. Air filters are what prevents contaminants, dirt and debris from wreaking havoc on your engine. They get clogged and less effective over time, which is why it’s recommended to change air filters in every 12 months or every 12,000 miles.

Mind the weather

Weather conditions especially extreme cold weather can put a strain on your car. Some of the common issues that may occur during cold weather include dead battery, radiator problems, ignition problems, coolant issues and cracked windshield wipers. Be sure to check all these things regularly to keep your car in tip top shape.

Keep tabs of your stats

With some of the top keep-up things about your car taken care of, this next step is pretty simple. Don’t just drive you car, care for it by keeping an eye on the stats. That includes tire pressure, fluid levels, etc. This way, you’ll know exactly when to bring the car to the mechanic for regular and overall maintenance

Guide to Buying a New Car for First Timers

1 Jul


Guide to Buying a New Car for First Timers No matter what type of car you’ve set your eyes on,there’s really one bottom-line we all want and that is to get the most of our investment.Whether you’re looking for a sleek sports car, an economical sedan or a family vehicle, here’s a guide to help you purchase your first car with ease. Follow the steps diligently and you’ll see that buying your first is not all that hard after all.

Choose Your Car

The first step is choosing a car. This is when you consider key factors as well as nitpick the little details. Start with the type of car you want. Among the most common types include SUVs, sedans,minivans, hybrids, trucks, convertibles and sports cars. Narrow your vehicle choices to three or five then continue to investigate things like car reliability, fuel economy and safety ratings. Car color choices and other little details matter too so make sure you have everything covered before moving on to the next step.

Know the Price

With your top car choices in mind, it is now time to get pricing information. But before that,make sure you know how much you can spend for a new car. Considering that you’re buying new, price can be hefty. This is why you need to take your time understanding the pricing basics. Research your car’s true market value or get quotes online. Once you know that the price is right, it’s time to plan your visit to the dealership.

Financing Your Car

If you have cash to buy the new car upfront, you can do so of course but if you’re like most people, you probably want to get it financed, that means knowing how much you can handle for the down payment and where to get the car loan.Most dealerships offer financing as well as banks. Whichever route you opt for, the key is to negotiate effectively. You can d it by phone, email or personally at the dealership.Just remember to not grab the first deal offered. Visit a couple of dealerships and compare pricing so you have options.

Dealing at the Dealership

If you’re ready to pay your dealership a visit, here are some things to keep in mind. One, prepare your negotiation skills. When offered a price, haggle a little to get a better value for your purchase.But before that, you’ll have to perform an initial inspection. From the inside out, inspect all the major and minor details. Then decide whether the car fits your needs and budget or not.

Test Driving Your Car

Before closing the deal, testing driving your car is probably the most exciting and important step in the process. This is when you test whether the car your chose on paper is exactly what you’d expect it to feel and fit your needs and wants. Begin by simply checking how it feels while sitting on your driver’s seat. Take it out for a run and ask yourself, are you satisfied with the overall experience? If you are then you’ve highly likely found the car of your dreams.

Finalizing your Decision

Not all test-drives go as planned. After one, you might decide that your prior car choice isn’t what you want after all. This is the part where you collect your thoughts; evaluate your car choice and dealership once more. Was the salesperson you spoke with responsive enough? Were all your questions answered? Were the answers genuine and honest? These are some of the questions to let stew on your head before signing any deal. Only when you’re completely sure should you go ahead and seal the deal.