A logbook loan is only available for someone who owns a vehicle. They will have to use that vehicle as collateral on the loan which means that they could lose it if they cannot make the repayments. It is therefore a risk.
A logbook loan may not be the best option for all drivers though. It is designed to be a last resort option for those who cannot get credit elsewhere and therefore it can be comparatively expensive. If you can get a loan without collateral that could be a better option as you will not risk losing your vehicle if you cannot pay it back.
You do need to compare the costs though. You may find that a logbook loan is cheaper than some of the other options available. However, you do also need to consider whether you will be able to pay it back. The vehicle will be repossessed if the repayments are not made and so that is a risk that you need to consider. You may feel safe at being able to do this, but you need to consider what might happen if your income is no longer coming in or if you have some big expenses. Not being able to repay will mean you lose the vehicle and the logbook loan company may not be lenient with you as the terms of your agreement are that they can do that.
So logbook loans are designed to be for any driver who is having difficulty financially. If they cannot easily borrow money cheaply, doing this can be an option. It can be cheaper than an unsecured loan and provide some much needed cash.
As with all loans, you should consider the consequences of borrowing. You need to really need the money before you borrow it and you also be confident that you can pay it back. By using your vehicle as collateral, you will be helping to keep the costs of the loan down, but you will be putting it at risk. If you cannot make the repayment then you could lose it. If you need your vehicle for your work, then you will not only lose that, but also your job as well. This is a big risk to take.
So a logbook loan is for a vehicle owner who has no cheaper loan options available to them. The vehicle needs to not have a finance agreement already against it and has to be worth more than the value of the loan.