Research has indicated a big up take in logbook loans to an increase of 32% (£1.5bn) in October 2012 compared with the previous year. No credit check car loans have gained popularity amongst consumers making it an alternative method to consumer lending.
No credit check care loans, known as logbook loans, are secured against your vehicle. The benefits include continuous use of your vehicle whilst committing to the agreement.
There are many consumers experiencing difficulties in obtaining finance and the best rates for loans from traditional lenders.
Logbook loans has filled a gap in the market where consumers struggling to obtain finance can now do so even if their credit histories are deemed bad by traditional lenders or even having CCJ’s.
There is speculation that logbook loans are expensive and similar to Payday loans. Logbook loans are 93% cheaper than Payday loans according to a poll conducted by Turn2Us and Step Change Debt Charity.
Consumers found themselves worse off after turning to payday lenders. It has been noted that to prevent debt from quickly spiralling out of control, it is better to opt for a cheaper loan that does not have additional fees.
Therefore logbook loans have proved to be a beneficial alternative to traditional lenders, easing the burden for consumers struggling to obtain finance in a tough economic climate.