Other than serving as a reliable mode of transportation, your car is one investment that may actually save the day when financial emergencies come your way. Provided that your vehicle is less than ten years old and is free of any financing, you can turn your vehicle into cash in 24 hours or less. How do you do it? By taking out a logbook loan.
What are logbook loans?
Widely popular in the UK, logbook loans are personal loans secured against your vehicle. You can borrow anywhere from £500 to £50,000 payable in 12 to 36 months at an average representative APR of 400%. To know more about this, read at SimpleLogbookLoan.
At first glance, logbook loans are quick cash at a price. Considering the high interest rate, it is a costly loan option that in any case can help you patch a wide range of financial problems. From overdue bills to medical expenses and major investments, logbook loans allow you to borrow up to 70% of your car’s official trade value.
How it Works?
As the name suggests, logbook loans require your car to serve as collateral. This doesn’t mean you have to hand over your car to your lender. All they need is your V5 document along with other requirements such as MOT certificate, insurance details, proof of income and proof of identification among other things. In essence, it’s like handing over temporary ownership to your lender only that you still get to keep and use your car.
But there’s a downside. Like with any other types of secured loans, logbook loans come with high risks. We’ve already talked about the high cost but that’s usually expected with quick cash loans. The other type of risks you need to carefully consider is the risk of vehicle repossession.
Since the loan is secured against your vehicle, your lender through the “bill of sale” has the right to repossess your car when they deem appropriate. By appropriate, it means you haven’t paid your monthly dues for several months. Your lender tried to contact you but to no avail. Even the debt collector was ignored. After several attempts and they still get no response from you, the lender, at this point, can opt for repossession to cover for your outstanding balance.
Who is it for?
Despite the cost and risks, logbook loans continue to be a popular quick cash option for many car owners in the UK. You can’t really blame them considering the many advantages that come with the loan. For most people, the advantages of quick cash, no credit check and flexible terms far outweigh the disadvantages of high interest rate and repossession risk.
Logbook loans, in short, are ideal for people with bad credit. If you’ve ever been refused a personal loan because of your credit history, logbook loans offer you another alternative that is extremely easy to avail. Just make sure you know what you’re getting into to avoid any financial consequences in the end.
One of the most costly expenses every car owner has no choice but to deal with is gas expenses. Whether gas prices have gone up or down, you still need to buy it either way. If you’re buying a new car and you want to save money, it pays to have the long term view in mind. Meaning it’s best to buy a vehicle designed with fuel efficiency in mind.
With manufacturers becoming more in sync with what the consumers need, there are now choices for you to look into. But with so many cars to compare, it can all get confusing at some point. Just remember that you’re looking for one with high fuel economy and low emission. To further help you along, here are some of the best fuel economy cars in 2015:
Compact but packed with features, this car is a champ when it comes to fuel economy boasting an equivalent of 170 horsepower to the pavement.
A new offering from Volkswagen this 2015, the compact car in electrified version packs a punch when it comes to its 115-hp electric motor. One charge can typically run 70 to 90 miles.
If you’re looking for the right blend of price, style and function, the Nissan Leaf is definitely worth a second look. It is packed with 107-horsepower equivalent electric motor at a cost effective price most people can afford.
Kia Soul EV
Another new offering for 2015, the Kia Soul EV Boasts a compact hatchback look with operating range up to 93 miles.
Ford Focus Electric
If you love the Ford Focus sedan, this is the all-electric version you can count on for best fuel economy. The car is advertised to have an operating range up to 76 miles in one charge.
Tesla Model S
Sleek and stylish, the luxurious sedan may be expensive and above most people’s budget for a fuel economy ride but this one sure steals the spotlight. It promises a maximum distance of either 208 or 265 miles depending on your battery packs.
Not all of us can afford to buy a new car unfortunately. My first car, for example, was a second hand Toyota sedan. If you’re thinking of buying a used car because that’s what fits the budget, there’s no shame in that. In fact, buying second hand when done right makes an excellent investment.
Buying used as opposed to buying a new car, however, is a tricky business. With so many things to consider and so many choices at your disposal, it can all get confusing. But don’t worry; we’ll try to keep it simple by focusing on the following factors:
All about the form
When looking at second hand cars, the first thing you need to inspect is the form. Check the tires, paint, trunk and under the car if possible. If you see any major damage, pass it up and move on to the next option.
Inspect under the hood
This part is probably the most important step before buying a used car. Your huge savings won’t pay off if there is any major damage on major parts under the hood. Start with the engine by checking for any types of corrosion or leaks. Also inspect the hoses and belts for any damage as well as the oil filler cap, fluid and timing belt.
Go inside the car
Your budget may be limited but it doesn’t mean that you have to sacrifice the condition of the inside of the car. Make sure everything is working fine including the air conditioning system, the seat and all the important buttons. While you’re at it, check also the odometer for the mileage. Ideally mileage should be directly proportional with age. That should be around 10,000 to 15,000 miles per year for an average driver.
Test drive the car
Like with buying a new car, it’s very important to test the drive the used car you have set your eyes on. Check for the feel especially when it comes to the brakes and keep your ears open for any abnormal sounds as that may imply an issue with the car’s engine.
Finalize your decision
Double checking your option always pays off when buying used cars. If you’re not confident with your personal knowledge on cars, you may want to bring someone who is more knowledgeable to do the inspecting for you. Before signing anything, be sure to negotiate the price. Money Advice Service can help you bargain for a better deal for your car.
Just like the tires and other parts of your car, the battery is bound to wear out over time. Unfortunately, the battery is one of those parts we fail to check regularly. Because of negligence, you’ll soon find yourself buying a new battery before it’s actually due for replacement.
To make the most of your car’s battery, there are some things you need to keep an eye on. The trouble spots, in particular, are very important. Keep them clean and well maintained and you’re sure to get the most life out of your battery.
Here are things you need to do to keep your battery in check:
1. Keep the terminals clean
Do you see that powdery stuff on your battery’s positive and negative terminals? They are made of battery acid you need to clean off. But before you go ahead and start cleaning, make sure the cables are removed from the terminals.
2. Remove the cables
To remove the cables, start with the negative terminal first by simply undoing the nut so the clamp is removed from the terminal. When done, use baking soda to clean the terminals using a toothbrush or scrub.
3. Keep everything dry
After cleaning the terminals, make sure to dry the battery with a rag. While at it, make sure you don’t get your hands on with those powdery deposits.
4. Reconnect the terminals
Once the terminals are dry, put back the positive and negative cables back. Do the positive cables first then the negative. After which, grease the terminals to prevent deposit formation.
5. Check the battery cables and clamps
If you happen to see any type of corrosion or fraying on the cables or clamps, you might want to consider a replacement if the damage calls for it. You may ask a mechanic to confirm if you’re unsure of the degree of damage.
6. Check the battery’s electrolyte
If you’re battery is especially old, you’d also want to check the battery’s electrolyte. Charge it if necessary or replace it if the charging did not do anything good.
7. Double check battery case and terminals
Before closing the hood, make sure to double check the battery case. If you see any significant crack, a replacement may be necessary. If the terminals also have any major damage, it might be time to ditch the old and buy a new one.
So you just bought a new car and it’s been running smooth as silk. You might think there’s no maintenance necessary at this point yet. Well, you’re wrong. If you want to keep your car running the way you want it, proper car upkeep is very important. Whether this is your first or nth car, there’s no excuse if you want to make the most of this investment.
Start marking the calendar and let’s start off checking these ten top things you need to maintain to ensure your car is always in its tip top shape:
Other than tires, your car’s brake system is one of the most important things to properly maintain. Bad brakes, at the end of the day, will not only inconvenience you but it can potentially put your safety at risk. Be sure to monitor the brake-pad and change the fluid level whenever necessary.
Tires wear out eventually and soon enough you’ll need a fresh replacement. How do you know when its tie to ditch the old tires? By checking the tire wear patterns. You can do so by using a tread depth gauge or you can simply use a penny. Stick it upside down in the tire grooves and if you see the head, it’s time to buy new ones. Here are tips and tricks when buying new car tires.
Ranking third on the car maintenance checklist is the coolant. This is the liquid in your radiator that serves multiple purposes. Make sure you keep an eye on its level as well as its potency level. Naturally, it diminishes over time so keep it in mind to replace it maybe every 2 years.
Engine and timing belts are another important car parts you need properly maintained. In general, these belts need replacement every three years. This is so other parts of your car such as the water pump or alternator remain working efficiently. If either the timing or engine belt is not in good shape, it may lead to a major engine problem and a mechanic visit.
5. Spark plugs
Spark plugs may be a small part of your engine but they sure play a major role with respect to combustion. In fact, spark plugs are the ones that make combustion happen. If your engine burns cleanly, this results in less maintenance so it really does pay to keep an eye on those spark plugs.
6. Fluid & filter
Fluid for automatic cars is like the oil that keeps the engine running smoothly by making sure the operating temperature is within the safe range. Failing to keep up with your car’s fluid and filter will only lead to more problems financially and mechanically. Rather than ignore this aspect of your car maintenance, might as well pay attention now.
7. Air filter
You may not see it but you’ll sure feel it especially since your engine relies a lot on air for it to run. To make sure your engine’s air and airflow sensor are clean, you need to replace your air filter regularly probably every twelve months or 12,000 miles.
Yes, you can make sure that the battery’s terminals are always clean and the charging system works well but you’ll still need to replace the batter at some point. When buying a new battery, make sure you buy one that is in sync with your manufacturer’s specifications.
9. Power steering fluid
This fluid is responsible for keeping the steering system lubricated. Make sure you check the level regularly and top it off as needed.
While used cars are definitely cheaper, nothing beats the feel and smell of a brand new car. Remember that you’re going to use your car almost on a daily basis for a long time. Rather than save money now, it’s almost always best to opt for a new car now and save money in the long run. If you’re ready to drive off with your new car, here are 9 essential steps to help with your buying decision without getting ripped off.
Like with any important purchases or investment, you cannot shop around without prior knowledge about what you’re getting into. Whatever budget you have or style you prefer, research is imperative. If possible, aim to know everything you need to know about cars. From car models to financing and insurance, it’s important to do your homework beforehand.
Obviously, one of the most important things to research on is the type of car suitable for your needs and budget. If you want a sedan, for example, you need to focus your energy on comparing different sedan options available in the market. Try Google and you’ll have an extensive amount of resources right at your fingertips.
Once you have a top 3 or top 5 list, the next step is to seek recommendations from family, friends or anyone you know with similar cars. After all, nothing beats good old fashion recommendation from regular car owners who love their ride.
Set Your Budget
To further narrow down your options, it’s now time to define your budget. If you’re not buying the car upfront, setting up a budget can be a tricky business. You’ll have to think about monthly payments, financing options, fees and taxes. Take your time when at this point of the buying process. The trick is to avoid overestimating what you can afford to avoid complications later on.
Get Approved for Financing
As soon as your budget’s set, you’ll now need some type of financing to buy your new car. It is recommended to seek for pre-approval if possible so you’ll have a better idea what type financing and interest rate you’ll qualify for. Speak with your bank, credit union or any type of lender you plan to tap on.
With your financing ready and approved, you can start contacting at least three dealerships and avail of their free quotes. Since you’ve done your preliminary research, you should have a fairly good idea how much your car choice costs. When you receive your quotes, compare and decide from there.
Negotiate the Price
Before you finalize the deal, be prepared to put your negotiating skills to the test. Remember that dealerships or private sellers have already added their commission to the price. You can still bargain some more to slash off the total cost of your new car. Before you do, make sure you know you have an idea of the price your dealership paid for the car for effective bargaining.
You’re almost ready to complete the deal. But first you need to put your research to the test by test driving your car. This can make or break your buying process. In any case, the key point is to make sure you absolutely like the feel of your car before signing any dotted line.
Seal the deal
Provided that the test drive went smoothly and everything’s already in place, the final and last step to buying a new car is to sign the deal. Get the necessary paperwork done so you can start enjoying your new car.