Why Vehicle Equity Release is the right choice for Scottish borrowers
If you are a Scottish, you are perhaps aware that logbook loans in Scotland have always been used to access cash when it is most needed easily and quickly. Nonetheless, the worries about the approaches employed by the logbook loan firms have made their utilisation decline over the years. As an alternative, people are shifting from the use of logbook when looking for loans to use of vehicle equity release.
What is a Logbook Loan?
In simple terms, a logbook loan is when a person uses his or her car as security to get a loan. It is essential to note that this type of loan is quite expensive and come with a high risk of losing the car if the loan recipient fails to make the total repayments. While you’ll continue using your car throughout the loan period, the lender holds the right to own the car until full loan repayments. More than once, the way logbook loan companies work has been put into doubt. Thus, people need to avoid these types of loans.
Vehicle Equity Release Explained
When it comes to the most valuable things that people possess, a vehicle virtually ranks amongst the top 3. After properties, vehicles, caravans, or even motorbikes are the other assets that people spend a lot on. Indeed, the expense is linked to the car. Now, auto equity release schemes, also popularly known as vehicle equity loans, allows the individuals in dire need of quick cash to take a loan based on their car’s estimated value.
Generally, these types of loans are similar to mortgage loans. In this case, the lender uses your car as collateral for the given loan amount. With this, you can see that vehicle equity release is a type of secured lending. For this reason, it is now becoming a much safer option to consider than the high-risk logbook loans.
What are the Advantages of taking Vehicle Equity Release Loans?
After assessing the benefits of car equity releases to logbook loans, you may wonder why people are still opting for logbook loans. The advantages that come with a vehicle release loan overshadows the logbook loan risks. The sudden decline of logbook application is no wonder to the individuals that have carefully checked at the comparisons. Here are the leading benefits of vehicle equity release loans:
Flexibility
Generally speaking, the logbook loans are made to cover short periods just like the payday loans. With this in mind, you can see why logbook loan lenders incorporate high-interest rates to their loans. However, you will be fascinated to learn that vehicle equity releases come with substantial flexibility.
First, your ability to repay the loan determines the repayment terms as opposed to the amount borrowed. It means that you will refund small payments over the period that suits your earnings. Secondly, since your car valuation determines the loaned amount, you can get access to the estimated value without necessarily selling your vehicle.
Ownership
One of the main reasons why car equity release is such a huge addition when compared to logbook loans is that you’ll not stop owning your car at any particular moment. Notably, at no specific moment will you stop owning the car. Of course, besides not transferring your car ownership to the lender, you will also not hand over the logbook. Thankfully, you keep your car ownership and still get the loan.
Acceptance
Another thing is that just like the logbook loans, you don’t need to be anxious about your credit history when it comes to applying for the vehicle equity release. In most cases, you will have to fill out a standard online form and verify that you are the only registered owner of the car that you want to use as collateral. The good thing is that if you are the real owner of the vehicle, you still qualify for a car equity release loan regardless of whether you are still paying off the car loan.
Finally, you can see that a logbook loan is becoming a thing of the past. Even in this challenging economic environment, the risks that come with a logbook loan still suppresses the benefits. However, you can avoid incurring huge debts, losing your vehicle, and revealing yourself to shady business practices from the logbook loan lenders by opting for a vehicle equity release.
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