How much can I borrow?
Logbook Loans: Car Cash Point Logbook Loans range from £500 - £50,000.
Motor buy back schemes:
Motor buy back schemes offer customers loans from £500 - £10,000, however, if you only require a £500 loan and your car is worth £5000, you will need to sell the car in full in order to get the loan.
Pay day loans:
Typical loans are from £500 - £1,200 maximum.
How much does it cost?
Logbook Loans:
Car Cash Point Logbook Loans charges 10% per month.
Motor buy back schemes:
Typical rates from 15% - 25% per month depending on the age of the car.
Pay day loans:
Typical rates are from 25% - 35% per month depending on your circumstances.
How long is the term?
Logbook Loans:
Car Cash Point Logbook Loans offers terms from 18-36 months.
Motor buy back schemes:
The typical term is 1 month and you are then charged for each extra month if you need to extend the loan.
Pay day loans:
The typical term is 1 month maximum, you and are penalised if you need to extend the loan into a further month.
Can I pay off sooner?
Log book loan:
Car Cash Point provides a transparent 100% penalty-free early redemption - you only pay for the time you borrow the money!
Other Lenders will quote 'Discounts for early repayment' what this actually means is you would be charged interest for the full term of the contract and then given a small discount when you redeem the loan early, resulting in you paying back substantially more than you borrowed.
Car Cash Point provides the ability to make unlimited additional overpayments at any time to repay your loan quicker. Unlike any other Logbook Lender in the country at Car Cash Point all overpayments will be deducted from the original amount you borrowed and your new interest and capital payments will be re-calculated over the remaining term
Motor buy back schemes:
You can Buy Back your Motor whenever you like, charges will apply and interest for the full month will be charged.
Pay day loans:
You can repay your Pay Day Loan whenever you like, charges will apply and interest for the full month will be charged.
What extra charges and penalties are there?
Log book loan:
Car Cash Point offers its customers no fees to set up or to repay the Logbook Loan.
- Early Redemption Penalties - None!
- Late Payment Fees - £14.00 for each missed payment [CCP only apply this if the payment is 5 days late to enable customers to make payments on time]
- Contact Fees for nonpayment - None
- Tracing Fees - At cost
- Legal Fees - At cost
- Repossession Fees - At cost
Motor buy back schemes:
Motor buy back schemes Companies will charge
- Early Redemption Penalties - normally the equivalent of one months' interest
- Late Payment Fees - £25.00each payment
- Contact Fees for non-payment - £12.00 per attempted contact if the company needs to call, text, e-mail, write you a letter
- Tracing Fees - Whatever the MOTOR BUY BACK SCHEMES Company deems to be a reasonable amount
- Legal Fees - The full charge rate of the Solicitors cost plus a profit margin
- Repossession Fees - industry standard £250.00
Pay day loans:
- Early Redemption Penalties - 1 months interest
- Late Payment Fees - £25.00 for each missed payment [CCP only apply this if the payment is 5 days late to enable customers to make payments on time]
- Contact Fees for nonpayment - £12.00 per attempted contact if the company needs to call, text, e-mail, write you a letter
- Tracing Fees - Whatever the Pay Day Loan Company deems to be a reasonable amount
- Legal Fees - The full charge rate of the Solicitors cost plus a profit margin
- Repossession Fees - Not applicable
What happens if I cannot pay?
Log book loan:
Car Cash Point operates within the Consumer Credit Trade Association Code of Conduct and works with customer if they are experiencing financial difficulty to try to come to a payment arrangement. The secret to maintaining good accounts to communicate if you experience financial difficulty. It is worth noting that a Logbook loan is a secured loan and your car is secured against the loan. If you fail to make payments and ignore any request to make payments your car can be repossessed to repay the debt. This however can be easily avoided by clear communication.
Motor buy back schemes:
When you complete your Motor buy back schemes agreement you have sold your car at a massive discount. If you fail to make your payments the company will repossess their car without the need to issue default notices or obtain a court order. You have no right of redress as you have sold the car to a third party.
Payday loans:
If you do not pay your Pay Day Loan on time you will be hit with excessive penalties for late payments and contact charges. Notwithstanding, all the while the excessive interest rates charges are spiraling out of control. If you are unable to repay this debt the Pay Day Loan will seek Court Action which could result in a CCJ or even Bankruptcy.
What happens if the vehicle is repossessed?
Motor buy back schemes:
The Motor Buy Back Company will sell the vehicle to recover the debt and keep all the remaining profit as they would own the car. The customer loses out!
Log book loan:
The Log Book lender will sell the vehicle at auction after 14 days. Any surpless funds would be returned to the Borrower.
Who will actually own my car?
Log book loan:
The vehicle is used as security for the loan under the Bill of Sale. The ownership transfers to Car cash Point until the loan is repaid and then it reverts back to the you.
Motor buy back schemes:
The Motor buy back schemes owns your car. They purchased it at a discount and if they decide not to sell you back your car or go bust you have lost everything.
Pay day loans:
The Loan is unsecured. This is why you are paying such excessive interest rates on a monthly basis.
I cannot prove my income/ I am on benefits/I have a low income, can I still get money?
Log book loan:
Car Cash Point follow the Consumer Credit Trade Association 'Code of Conduct' on ethical lending and will only lend you if you can proof income and pass the a review of your income and expenditure. We need to be sure you can afford to repay the debt.
Motor buy back schemes:
Motor Buy companies do not review you income and expenditure as they hope you are unable to repay the debt so they may sell the car and release the full equity.
Pay day loans:
You will need to provide basic level of income and expenditure, but like Motor buy back schemes these lenders are less interested in your ability to repay rather the opportunity to charge excessive fees.
The three products seem very different. How would you sum them up and which gives me the most protection?
Log book loan:
Car Cash Point offers the most flexible and best value short term loan of the three options reviewed. It gives you control to decide how long you want to borrow you loan over. Plus, it gives you to control to decide how much you want to pay and when you want to pay the loan off. Fundamentally, you have not sold the car and you are protected by the Consumer Credit Act which ensures you are ported at every stage.
Motor buy back schemes:
You have sold the car to a 3rd party who is under no obligation to sell you back your car or if the company goes bust, you have lost everything. It is worth noting, this product is not regulated under the Consumer Credit Agreement and you have no protection form the lender just repossessing their car.
Payment loans:
The excessive interest and punitive fee structure for nonpayment can make this loan very expensive if you fail to maintain payments. The term period and very short and loan amounts are typical low which provides the customer with no flexibility.
[The information regarding motor buy back schemes and Pay Day Loans products takes industry standards into account and is not information about any single loan product.]
You are in control, please choose the right product to suit your financial needs.
