In financial difficulties? Need money quickly? Then your prestige car could hold the answer for you.
Your prestige car is an asset, and there are plenty of lenders who will loan you some money by using your car as collateral. Your car won’t go anywhere, and as long as you keep up with your repayments, then it could be the solution to all your problems. Read on to find out how this arrangement works.
With a logbook loan, all a lender will require is the logbook for your prestige car. Hand it over to them, and they will provide you with the loan. The car will stay with you, but the logbook will stay with them. The lender will return the logbook once you have finished your loan repayments.
Releasing Equity from your Supercar
Another way to obtain money for your car is to release the equity in it. With this method, the lender works out the value of your car, and will give you the cash equal to, or lower than, that amount. You won’t need to surrender your log book and can still use your car.
Essentially, the lender is buying the car from you, but is still letting you use it, and you simply repay the loan. It’s the same principle as purchasing a car from a dealership, with finance, and then making repayments.
This method is getting more popular. The main reason is that it’s an easier method than a logbook loan, as the application process is simpler, there are fewer stipulations to be met, and you should receive the money more quickly. Some lenders can process your application in one day, and some will even allow online applications, with no need to fill in any physical paperwork.
Car equity release is also a better option if you haven’t got great credit. Logbook loans require you to have decent credit, but with equity release, the lender is more interested in the car’s value, rather than your credit report.
Releasing equity is still an option even if you have outstanding finance on your car. You can either have two loans on the car, which also means two repayments, or you can ask your new lender to settle your finance agreement with your original lender.
Lenders that take part in these equity loans are regulated and therefore safe to deal with. They’re monitored and won’t want to risk any financial penalties by not following the rules, so your car will be protected, as long as you keep up with repayments. If you did ever have any problems with a lender, then there are clear ways and protocols to deal with this, but these are rarely needed.
As with any other loan, your instalments and length of the loan will be clearly explained, and many lenders are flexible with their terms, some even allowing as much as five years to repay. You can even pay your loan off more quickly, if you find you can afford to do so.
Releasing equity is simple and discreet. You keep your logbook and your car, so nobody would ever know that you have needed to take a loan out on your vehicle, as long as the repayments are made.
The most important thing to remember is that instalments must be made on time. If they aren’t, the lender will be able to add default charges and extra interest, which will inflate the amount you end up paying back. You will also be at risk of having your car repossessed, and possibly losing all of the money you have previously paid back, as well as your car.
Releasing equity in your prestige car is a great way of obtaining money fast, whilst keeping your car, but only if you are able to keep up with the repayments, or you could end up losing your pride and joy.