Logbook loans are one of the most emerging types of sub-prime finance in UK, owing to the quick and hassle-free delivery of money. The reason is that these loans come in handy for people who have a bad credit history, making them unable to apply for other kinds of loans such mortgage; payday loans etc and thus, they use their vehicle as collateral. The major catch about logbook loans is that the money is delivered promptly and safely to you the same day you apply, provided that the agreement works out between you and the lending company.
Whichever company you are dealing with, whether it is us or someone else, has a particular criteria set for the customer to abide by in order to secure a loan against their vehicle with the company. This criterion usually includes that the vehicle must be insured and free of all the significant debts secured against it, it must be taxed, kept in a good state and most importantly, the vehicle must have passed the MOT test.
Ministry of Transport (MOT) test is carried out on a vehicle to check whether the car follows the road safety code and environmental standards set by the ministry or not. To get more information about the test or the parts that are checked, visit Gov.uk. Basically, an MOT certificate certifies that your car meets all the legal standards and is in a good, roadworthy condition. So, this MOT certificate is a guarantee for lending companies that your car is in a good condition and it is safe to secure the loan against its value.
As the Gov.uk mentions, the MOT certificate of a vehicle must be obtained by the ‘third anniversary of its registration or the anniversary of its last MOT, if it’s over 3 years old’. However, there are some vehicles that need to be tested after 1 year of its registration. Also, the MOT test is supposed to be carried out at an approved MOT centre.
Driving a MOT-less car on a road is a great offence and can also result in prosecution. Therefore, companies like Cabinet Reed Loans and other responsible companies ensure that the vehicle is road worthy according to the Ministry of Transport before lending money.
If you are in need of quick cash and want to apply for a logbook loan with our company, click here and get a free quote within minutes.