#log book loans
Logbook loans are secured on your vehicle
Logbook loans or ‘log book loans’ refer to borrowing up to £50,000 secured on your vehicle. Whether it’s your car, motorbike or van, you are asked to supply the lender with a ‘log book’ (V5 registration document) or MOT certificate for security. Borrowers will be asked to sign a form known as the ‘Bill of Sale’, which means that the lender will own your vehicle on a temporary basis. You are still able to use the car as normal so long as you meet all the monthly loan repayments. However, if you fail to repay the loan on the dates agreed, the bill of sale means that the lender can repossess your car without a court order.
Logbook loans are popular for those with bad credit who may have been turned down for loans by traditional banks or lenders. By providing their car as security, it gives the lender more confidence that they can recover the cost if the borrower is unable to meet repayment. Borrowers must be aware that failing to meet repayment will lead to the repossession of their car and additional charges in order to repurchase it.
Our comparison table allows you to clearly compare the cost, duration and amount that you can borrow from different logbook loan companies in the UK. You can borrow up to £50,000 depending on the value of your motor vehicle and repay over 2 to 5 years in weekly or monthly instalments. You can receive funds directly into your bank account in one lump sum on the same day or the same week depending on the lender.
When you apply with one of our featured lenders, you will be asked to enter details about your car and its value. To be eligible, you need to own a vehicle worth more than £500 and have no outstanding finance on it, depending on the loan vendor. The value of the vehicle determines how much you are able to borrow and lenders will typically lend up to 50% of its value. You will also be required to have other details of your car handy to prove that you are the owner, also known as the ‘Registered Keeper.’
Apply for car logbook loans online
Traditionally, one could obtain car logbook loans from various companies and dealerships in your local area. There are lots of places in Manchester and Liverpool where you can arrange an appointment to value your car, show your documents and sign the agreement in person.
However, it’s a lot more convenient and practical to apply for logbook loan online. You can apply from anywhere using your desktop, mobile or tablet as long as you have access to the Internet. Applying online gives you more choice – our comparison table allows you to compare the rates of several different lenders at once. The companies we feature can process the entire application online from entering the details about your vehicle and signing the loan agreements electronically. All correspondence is handled via email or SMS so you don’t have to post any documents off and wait for an answer. All the checks can be run electronically, giving you an instant decision as to whether you have been successful or not. Provided that you meet the lender’s criteria, you can receive a same day logbook loan and the funds will be transferred to your bank account immediately.
What vehicles can you use for a logbook loan?
Logbook loans for vans
The lenders we feature will be able to offer you a logbook loan for vans and camper vans. However, if your van is your source of commuting to work or living arrangement, you must be very aware of the potential risks of this type of finance. By agreeing to a logbook loan, you agree to use your van as collateral and this can be repossessed by the lender if you default on payments.
Logbook loans for motorbike
Similarly, if you want a logbook loan for motorbikes and use this type of vehicle for commuting to work or because its part of your work, you must be sure to read the terms and conditions carefully. You will need to be the owner of the vehicle so it cannot belong to your company and you must not have any outstanding finances on the bike. Furthermore, failing to repay on time means that your motorbike could risk repossession and this will affect your ability to go to work and generate income.
Logbook loans for old cars
Even if your vehicle is a few years old, you can still get a logbook loan for old cars. Lenders tend to favour newer cars because they are worth more and this will also increase the amount you are able to borrow. Some lenders will be very strict on how old the car is e.g 7 years, 8 years old etc. However, you can shop around and use the loan calculator on each of our featured lenders to see how much you will be able to borrow based on your old car.