Motor Buy Back v Logbook Loans v Payday loans

Motor Buy Back v Logbook Loans v Payday loans

Confused? Get the low-down from an industry expert on which fast cash option is best for you!

Our in-depth guide – written by an industry expert – features a unique price comparison guide of your different fast cash options.  Are you weighing up taking out a Logbook Loan versus a Motor Buy Back Scheme or a payday loan? Here is the information you need to make the best informed decision possible:

Brief summary: People with poor credit history often find it difficult to raise cash fast. Banks impose one-size-fits-all criteria and have fixed regulations that often mean they turn down applicants who have suffered a credit problem in the past without even considering the application seriously. If you don’t tick the right boxes, you aren’t getting any fast cash, whatever the circumstances!

So what you should do if you need cash fast or are looking for a big loan with no proof of income or bad credit? Is the computer of the lender you have spoken to already saying: “No”?

How much can I borrow?

Logbook Loans: You can normally borrow £500 – £50,000 with a Logbook Loan from a range of Lenders. Companies offering Logbook Loans range from big players offering same-day cash such as Logbook Loans 365 to alternative lenders who may also be able to help you raise cash in some circumstances such as V5 Loans, LogbookLoans4u or Car Cashpoint and Mobile Money.

Motor buy back Cash:

You can raise from £500 – £100,000 cash within hours if you decide a Motor Buy Back is right for you. This fast-growing flexible option is the choice of more and more motorists each month because you don’t need to prove your income or supply detailed documentation which delays access to funds. The market leader in this field is Motor Buy Back, although a range of smaller operators also promote this product including GetCashKeepCar.com.

Pay day loans:

Borrowers can raise anything from between £60-£1200 online via a payday loan. The biggest player in this market across the UK is Wonga, but the company turns down more than half of first time applicants based on its credit scoring systems.

How much do they cost?

Logbook Loans:

A Logbook Loan typically costs a motorist anywhere between 10% and 15% per month of the total sum borrowed. Popular online sites such as LogbookLoans365 tend to offer customers the best terms, so always check the rate carefully if you sign up for a logbook loan in a high street store or via a smaller player.

Motorists also face other add ons and charges if they fail to keep up with their loan repayments. INSIDE TIP: Always make your payments on time to avoid racking up extra fees and charges which can increase the length of time it takes to clear the debt! Many smaller

Motor buy back Cash:

A MotorBuyBack car rental typically costs drivers around £34 per week, depending on the size of the Buy Back deal agreed. Drivers option for the MotorBuyBack option always agree exact weekly rental payment at the outset!

Pay day loans:

Rates vary between different lenders in this market, but the major players typically charge borrowers between 15-25% each month.

How long is the term?

Logbook Loans:

A Logbook Loan is typically a fixed long-term term agreement which locks borrowers into a commitment of between 18 months and four years. Many of the best respected players allow borrowers to make early repayments and clear the sum they owe early.

Motor buy back schemes:

You can take out a MotorBuyBack whenever you need it tailored to your circumstances! Many MotorBuyBack operators offer a flexible12 week agreement.

Pay day loans:

Payday loans are best for very short-term borrowing and cash flow needs. The loan product was originally invented to help borrowers bridge a shortfall for a few days – literally until payday. INSIDE TIP: A payday loan is NOT normally suitable for borrowing cash for longer than a few days or weeks at most a  as heavy rollover fees and penalties are often applied. The high APR interest rate also penalises borrowers who do not repay a payday loan on schedule.

Can I pay off sooner?

Log book loan:

Some Logbook Loan companies allow you to repay your loan early. Again, you should rely on a reputable well-respected Logbook Loan expert such as LogbookLoans365. INSIDE TIP: Many high-street or smaller online logbook loan lenders will charge extra interest or penalties for early repayment. Make sure via your lender that you are able to repay whenever you are ready!

Motor buy back CASH:

You can Buy Back your Motor whenever you wish, absolutely  no charges whatsoever will apply for buying it back, and there is no interest to pay.

INSIDE TIP: The flexibility of the Motor Buy Back option is the main reason this fast-growing product is the choice of a sharply increasing number of motorists.

Pay day loans:

You can repay your Pay Day Loan whenever you like and in fact you should make an effort to do so as soon as possible. This way you will avoid rollover penalties and the amount you owe increasing sharply.

What extra charges and penalties are there?

Log book loan:

Please check with your chosen lender! Always ensure you apply via a recommended major online Logbook Loan expert such as Auto Money or LogbookLoans365. INSIDE TIP: Warning: some high street and smaller logbook lenders may charge you early repayment penalties if you pay of your loan early.

• Early Redemption Penalties – NONE with recommended lenders. WARNING: check with your lender. Some minor players may levy fees for this service.

• Late Payment Fees – £14.00 for each missed payment [ This usually only applies if the payment is 5 days late to enable customers to make payments on time]

• Contact Fees for nonpayment – up to £12 depending on lender.

• Tracing Fees – At cost

• Legal Fees –

• Repossession Fees – £300-£500 depending on circumstances.

Motor buy back – Motor buy back schemes are the flexible online option:

• Early Redemption Penalties – None! You can literally buy your car back, for free, whenever you need to!

• Late Payment Fees – £12.00 each payment when not waived.

• Tracing Fees – None at all! MotorBuyBack operators don’t charge you a penny for tracing your vehicle!

• Legal Fees – Legal fees are not charged by MotorBuy Back Operators!

• Repossession Fees – At cost if required.

Payday Loans:

• Early Redemption Penalties – 1 months interest

• Late Payment Fees – £25.00 for each missed payment.

• Contact Fees for nonpayment – WARNING: These can be high. In many cases approximately £12.00 will be charged every time a payday lender needs to write, call or text you!

• Tracing Fees – The full cost of tracking down a debtor will be added to the defaulter’s debt.

• Legal Fees – The full charge rate of the Solicitors cost plus additional add-on fees.

• Repossession Fees – Not applicable

What happens if I cannot pay?

Log book loan:

Most respected Logbook Loan operators- such as Auto Money, Loanmymotor.com or LogbookLoans365 - work closely with customers who find themselves in financial difficulty. Customers in genuine financial hardship are always offered a payment arrangement for example and a flexible, understanding approach is taken to help customers resolve their situation.

INSIDE TIP 1: Communication is the key to a good relationship with a logbook lender. In the hopefully unlikely event you are unable to keep up your loan repayments in full, always call your lender’s customer service department. Most will be flexible, understanding and helpful!

INSIDE TIP 2: Despite the above, It is worth noting that a Logbook loan is a secured loan and your car is secured against the loan. If you fail to make payments and ignore any request to make payments your car can be repossessed to pay off a debt.

Motor buy back schemes:

MotorBuy Back operators offer drivers flexible, fast cash. Like any car rental company, their top priority is that you continue to make you payments! If for any reason you are unable to make your repayments you should contact the MotorBuy Back operator who will work flexibly with you to help you meet your rental payments.

INSIDE TIP: You should be aware that if you fail to make any rental car rental payments or choose not to buy back your motor, the car rental company may eventually write to you asking you to surrender your vehicle as you no longer own it!

Payday loans:

If you do not pay your Pay Day Loan on time you may be hit with hefty penalties for late payments and default charges. Failure to repay a payday loans can lead the interest to spiral and can eventually lead to a CCJ or to you being declared bankrupt.

What happens if the vehicle is repossessed?

Motor buy back schemes:

The Motor Buy Back operator will retain the vehicle for 14 days to give you a final opportunity to Buy it Back! The vehicle will then be sold or rented to other customers.

Log book loan:

Your vehicle will be sold at auction following repossession by a Logbook Lender. Reputable operators will return the contents of your vehicle to you.

Who will actually own my car?

Log book loan:

The vehicle is used as security for the loan under the Bill of Sale. Ownership transfers to the logbook lender during the loan term.

Motor buy back:

A MotorBuyBack operator literally buys your car from you – and rents it back from you until you are ready to buy it back – at exactly the same price!

Pay day loans:

The Loan is unsecured. INSIDE TIP: The unsecured nature of a payday loan is the main reason for the very high APR interest rate involved in this sort of borrowing.

I cannot prove my income, can I still get money?

Log book loan:

Logbook Lenders will need to see extensive documentation and written proof of your income and what you have spent over the last few months before being able to decide to make you a loan. You will probably need to provide bank statements, utility bills and undergo a detailed cross examination about your spending patters.

Motor buy back Cash:

Motor Buy Back operators do not require proof of income because you are not taking out a loan. Instead, you are literally selling your car until you  are ready to buy it back – for exactly the same price!

Pay day Loans:

You will need to provide details of what you earn and what you have spent.

The three products seem to have significant differences. What are their key features and what is the best option for me personally?

Log book loan:

A logbook loan is ideal if you are looking to borrow a sum of money for the very long-term and your circumstances are unlikely to change. You will enter into a fixed long agreement for between one and a half and four years. During that time you will need to make payments every week. At the end of that time, the loan will be paid off.

Motor Buy Back CASH:

MotorBuyBack is the best option for drivers who own their own motor, do not already make hire-purchase payments no it, and are looking for fast, flexible access to larger sums of cash between £500 and £50,000.

INSIDE TIP: MotorBuy Back is not suitable for drivers whose vehicle is extremely old or has a low value. As a general rule cars more than fifteen years old or worth only a few hundred pounds are unlikely to be suitable for MotorBuy Back cash.

Payday loans:

Payday loans are perfect for borrowers who need cash for literally just a few hours or days and who are paid weekly. However, borrowers should only rely on the payday lending option for the most short-term of emergencies as interest rates and penalties are high if you delay repayment of a payday loan.

You are in control, you make the decisions. Please select the right product from above to suit your own financial needs.

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