After a long string of bad money decisions and problems with repayments of a loan, credit card debt or even a mobile phone bill, you wound up on a bad credit report list, which is manageable, but very inconvenient if you suddenly need to borrow money. Bottom line, there are not many banks that give you the chance, once you are off the bandwagon. Now you are considering to sell your car, the last asset you have, which is still fully yours, without a debt on it, still in a well enough condition to bring some admirable cash infusion into the dusty wallet.
Unfortunately you need that car to go to work. Public transportation is not very helpful, because you will need to get to town anyway, or it is very inconvenient, far, takes too much time, is unfeasible and dozens of other excuses not to sell the car – not realistic or within reason, but still you want to keep the car. Selling the car and purchasing a smaller, older, cheaper car is out of question, it would take too long and probably you will wind up sticking into the car more than you got for your old one, just to be mobile.
There are not many options for you out there, short of the paycheck loan, which is not really a loan, just a very expensive advance on your own money. The only option left is the logbook loan. Based on an ancient law that included signing a “bill of sale”, a logbook loan is providing you with money by retaining the ownership of your car as collateral. You may still use the car as if it is your own, only the lender keeps the logbook and with the bill of sale that lender can easily transfer the full ownership onto him or his company and simply sell the car, after a repo service picked it up. This happens only if you failed to pay them back as agreed.
Although this whole scheme sounds fishy, the government a couple of years ago put some order into this whole business and now only legit and certified lenders are allowed to provide logbook loans. Unfortunately for people who take advantage of the easily approved and fast to cash out loan, the APR rates are sky high; you can expect to find lenders who demand up to 500% representative APR, so you may wind up paying back several times more than you actually got. Luckily there are now also lenders who try to entice business to come their way and lower the APRs considerably, so shop around for best offer.