When I worked for a Credit Union, we had several members who got into dire straits by taking out a logbook loan.
Under this agreement, you get a loan based on the value of your car, and you relinquish the logbook as collateral. In all the cases I saw, the cars were over-valued and the clients borrowed more than they could afford. In all cases the length of the loan outlived the useful life of the vehicle and the clients were left without a car to drive, that they couldn't trade in, sell, or repair as the cost of the loan was crippling. At 437.4% APR, they promote themselves as a great alternative to a payday loan. Both are terrible.
Please, please, please, don't take out a logbook loan.
Under this agreement, you get a loan based on the value of your car, and you relinquish the logbook as collateral. In all the cases I saw, the cars were over-valued and the clients borrowed more than they could afford. In all cases the length of the loan outlived the useful life of the vehicle and the clients were left without a car to drive, that they couldn't trade in, sell, or repair as the cost of the loan was crippling. At 437.4% APR, they promote themselves as a great alternative to a payday loan. Both are terrible.
Please, please, please, don't take out a logbook loan.