Logbook Loans: A Growing Industry
In the wake of the rigging of Libor and amid the ongoing PPI scandal – which is expected to be the fattest mis-selling scandal in British financial history – a fifth of Brits said they have lost faith in the big banks.
Following a lack of transparency and the repeated deception of loyal consumers, Barclays, which is Britain’s second-largest lender, admitted back in July that the public’s trust in banks had “been decimated and needs to be rebuilt”.
Such a banking culture has unsurprisingly put people off opting for a traditional high street loan – and even those who do attempt to get credit from high street lenders are failing to do so due to the exceptionally harsh lending criteria.
The sluggish economy has put banks on high alert, meaning that only individuals with a spotless credit history stand a real chance of getting a loan at decent rates.
Consumers are therefore increasingly seeking alternative means of finance. Same day logbook loans have exploded in popularity since the embark of the recession.
“Over 30,000 logbook loans are recorded every year and this figure is rising,” Kristian Welch, consumer director for vehicle data check company HPI, said earlier this year.
“People are simply finding it too difficult to get traditional finance deals from the bank, and in turn a logbook loan has become increasingly popular.”
The industry is thriving due to the soaring popularity of logbook loans, and with Christmas just around the corner, companies are bracing themselves for a wave of applications.
What are logbook loans?
They are secured against your car, but still permit you to drive your vehicle. Depending on the value of your vehicle, you can borrow large sums of money, which can reach up to ?50,000.
Logbook loans charge a comparatively puny amount of interest, typically 90% cheaper than the amount charged by payday lenders, marking them as a more financially viable option.
The lending criteria of these loans are far more accommodating than those of a high street lender. If you have a car and it is free of finance, you are eligible to apply – it’s as ordinary as that!
They are also a ideal option for those seeking no credit check car loans: since logbook loan companies will not carry out credit checks, those with a bad credit history or CCJs are free to apply.
A Motor Buy Back scheme builds on the advantages of logbook loans. In addition to all of the above, no proof of income check is required, so a decision can be made instantly and individuals who are self-employed are welcome to apply.
Furthermore, consumers opting for a Motor Buy Back are not trussed by long contracts or subject to early settlement fees.
Logbook loans are growing hugely in popularity especially with the criticism of payday loans. If you have a website, an email list or even a pawn broking store and would like to earn good money for referring people, you should consider a logbook loan affiliate programme.
With various promotions methods and ways of tracking your referred customers you can commence earning! Commission vary but most are around ?Ten – ?15 per valid lead and some even suggest a % commission.