Welcome to AGWA Loans
In our modern world, it’s impossible to do anything without some form of cash on hand. Unfortunately, many of us struggle from pay check to pay check, just making ends meet. And when that emergency comes along, we often don’t know where to turn to if we need an extra little bit of cash to help us out.
This is especially true if we have missed a few installments on one of our loan payments, or maybe even a payment on a vehicle. By doing this, you start to venture into bad credit territory and trying to get any loan when you have a bad credit rating is virtually impossible.
But what if you need money desperately? What if you have an unforeseen medical emergency that needs to be sorted out urgently? Or what about an unexpected bereavement in the family? All of these things cost money, and if you don’t have any spare cash on hand, chances are, you might be in trouble.
Luckily, if you own a car, there is a way out! For the past number of years, more and more United Kingdom residents are turning to logbook loans to lend money.
What is a logbook loan?
A logbook loan is an unsecured loan taken against the value of your vehicle. This could be a car, a caravan, a truck or even a motorcycle. Of course, there are a few considerations that are taken into account before the loan is awarded. These include:
- The overall condition of the vehicle
- The age of the vehicle
- Who owns the vehicle
Let’s take a look at these in a few more details.
Depending on the condition of the vehicle, most loan agencies will offer from £500 to £50 000. The value is generally 50% of what the vehicle is worth. Note that vehicles can only be up to ten years old. Anything older and you won’t be able to secure a loan unless you own a vintage car that has real value. You must also own the vehicle. It cannot belong to a sibling, spouse, friend or family member. Finally, your vehicle must be fully paid off. You cannot still owe any outstanding debt on it.
But why all of these conditions? Well, if the loan is approved, you surrender your vehicle logbook or V5 document to us. For the duration of the loan, we are legally the owners of the vehicle. This protects us should you default on any payments and it means we can legally sell the car to recoup any costs. If we sell it for more than the loan amount, any extra cash is giving to the loanee.
How do you apply for a logbook loan?
It’s simple really. Come into our office and we can talk you through the procedure step by step. Remember, we will require quite a few documents from you. Having these ready when you visit us the first time will help to ensure that the loan process is concluded quickly. In fact, you won’t have to wait more than 24 hours for a decision and normally the amount agreed upon is paid into your bank soon thereafter. Sometimes this is instantaneous, but it depends on who you bank with and how quickly they clear the money.
So what documents will you need? The most important document is your vehicle logbook or V5 document. We keep this for the duration of the loan as we are legally the owners of the vehicle. It will be given back as soon as the loan is paid up in full. We will also require an up to date MOT certificate. This will help to prove the vehicle is in good condition. We will need a few documents pertaining to you as well. Bring some form of identification, either an identity document, passport or drivers licence. We will also require a proof of address (a utility bill is fine) and finally bank statements as well as your payslips for the past three months.
One last note, make sure your vehicle has comprehensive insurance. As you will still be using it during the duration of the loan, we need to know that it will be kept in excellent condition and protected from accidents or even bad weather conditions. We will not give you a loan without comprehensive vehicle insurance.
So what are you waiting for? Don’t delay, contact us for a logbook loans quote today!