When taking out a log book loan one may not necessarily countenance the possibility that they may actually loose their car. Ask yourself the question, what does your car  mean to you, and what would be the effect of loosing it on your ability to earn, to get to work and do the school runs? Then ask yourself if the risk is really worth it. There are of course occasions where it is clear that the loan is affordable and the risk of loosing the car negligible, but there are borderline cases and strikingly obvious cases in which it is more likely that not that the car would be lost. If you cant afford to lose it, then why take the risk?