If you already own a car and it is without any burden, or rather it is all paid off, then you can deal with that asset just like with any other asset you own – you can generate some money with it. Loan is just one of the possibilities open to you and you should keep it in mind, in case you find yourself in need of fast cash. You may have heard about the logbook loan. While it is not the best loan out there, it is the fastest one, where you can receive your money already the same day you apply or within 24 hours the latest.
Now why would you consider a logbook loan, which is known to be the most expensive loan on the market? Well, for one, you probably have all kind of other loans. Then, you probably have maxed out credit cards as well, otherwise you would not bother reading this. You also probably have less than stellar credit rating and will need the money yesterday. Additionally, you do not like to sell your car either. In such a scenario, there is almost nothing else left, but the logbook loan.
Guess what, anybody with a car can get one of these. It does not matter that you have bad credit, because the lender will not check your rating at all. You vouch for your repayment with your car, which will get sold if you absolutely ignore payments. If you pay back in time, with a little wiggle room, of course, you not only have no trouble, but work towards repairing your credit rating as well.
If you have a good credit rating, then you still can use your car as collateral, but you should rather consider a personal loan. These personal loans take a little more time to get approved, but you still get the money early enough. Besides, the APR rates are miles better and you can have the bank subtract your payments directly from your bank account.
There are also so-called car loans, where you can get a loan in order to purchase a car. Not the leasing type, but the regular loan, where you use the money to purchase a car. In this scenario you do need to have a proper credit rating and a job. But once you picked a car, there are plenty of ways how you can manage to secure that loan. Most of the time your job is used as a guarantee that you will have funds for monthly payments. If your monthly payments surpass a certain percentage of your pay, the bank may consider putting up your car as collateral. Either pick a cheaper car, or perhaps consider leasing.
Leasing is quite similar to the logbook loan, only the APR rates are way more affordable. Additionally, while with the logbook loan you still retain ownership of the car, with leasing you actually never truly own the car, but own the title to the car owned by the leasing company. Similarly, if you miss payments, the lender can repossess your car, whereby in case of a logbook loan, they do not need to go through a court in order to get a permission to act, they have the bill of sale, something you sign when you get the cash for your logbook loan, which gives them the right to pick it up without a judge saying they can.
On the other hand, if you live in a large city, like London, for instance, you are better off having no car at all. Public transportation is really affordable, fast and gets you wherever you want to go, so unless you really need that car for your job or something, you should rather consider walking. It is cheaper, healthier, more fun and will not bring you into road rage.