How do logbook loans work?
Logbook loan providers lend on the basis that your car is used as security against your loan repayments. For the period of the loan you will be required to hand over ownership of your car. To formalise this process, in most cases the provider will ask you to handover your vehicle's logbook or vehicle registration document (hence the name Logbook Loans).
If you then fail to meet your repayments the provider has the right to seize your vehicle. By law they must send you a default notice, giving you 2 weeks to respond but if nothing changes the lender will not have to go to court to repossess your car. So the message is - If you do find yourself struggling seek debt help and don’t ignore the problem.
Am I eligible for a logbook loan?
Lenders will review your application against their acceptance criteria so be sure to check their criteria before you apply. Logbook lenders may or may not look at your credit history but they will certainly take into account your personal circumstances, your affordability, your ability to comfortably repay the loan and the value of your vehicle.
Can you get a logbook loan with bad credit?
As logbook lenders primarily base their lending decision on your affordability and the value of your vehicle, a logbook loan is an option if you have a bad credit history and are in need of finance. It’s key to note that logbook loans are not cheap and your vehicle will be at risk. So before you jump in, compare your options as there may be cheaper alternatives that don’t require you to risk your vehicle.
Can I sell my car with a logbook loan on it?
Whilst a vehicle is being used as security for a logbook loan, the vehicle doesn't belong to the 'owner' until the loan repayments have been made in full. It's against the law to sell the vehicle before this time. The loan provider has the right to take legal action if the vehicle's sold before the logbook loan is paid off.
Will lenders consider a car on finance?
Each provider will have their own criteria, so check with the lender before you apply. Some may not take a car if there is outstanding finance whilst others may lend on vehicles with outstanding finance under the provision that the finance is cleared prior to completing the loan.
Can I get a logbook loan if I have an older car?
When applying for a logbook loan your vehicle will be reviewed and it’s value assessed. Lenders may require the vehicle to be of a certain value which may be impacted by the age of the vehicle. However, this is not to say an older vehicle cannot be used to secure a logbook loan.
Will someone need to come to my house to inspect my car?
Go back a few years and almost certainly an agent would be required to visit your home and inspect your vehicle. However, this no longer the case with lenders now using technology like WhatsApp to inspect vehicles remotely.
Can I get a logbook loan if I am on benefits?
When deciding whether or not to lend to you the lender will review your income and expenditure, along with your personal circumstances and the value of your vehicle. This will be done on an individual basis and means even if you are receiving benefits you still may be able to obtain a logbook loan.
How does vehicle equity release from LoanOnYourCar differ from a logbook loan?
Vehicle equity release is an alternative to a logbook loan creating more flexible solutions for those wanting to use their car to help obtain cash.
We’ve asked LoanOnYourCar.com, a leading equity release loan provider to explain the key differences between their product and a typical Logbook Loan.
1. The Agreement
LoanOnYourCar.com offer credit to their customers using a regulated ‘Hire Purchase Agreement’. This is for increased protection in comparison to ‘Bill of Sale’ agreements used which allow a vehicle to be repossessed without going to court.
2. The Logbook and Sparke Key
LoanOnYourCar.com will never ask a borrower to surrender the logbook or a spare key.
3. Using technology to assess the vehicle
Traditional Logbook Loan lenders will always send a 3rd party agent, often the next day to the borrower’s home to complete the loan. The meeting can last for up to 1 hour and the documents may require a witness to sign them. LoanOnYourCar.com will instead always complete the loan 100% online and the car inspection via WhatsApp. This means if approved the loan can be paid out in as quickly as 1 hour.
The priority of LoanOnYourCar.com is to offer it borrows the perfect flexible lending solution to meet their needs and requirements.
- Loans from £500 - £100K
- Low Interest rates with a price promise
- Loan terms from 1 year to 5 years
- Option to pay weekly or monthly
- No hidden fees or charges
- No minimum period
- The ability to settle loan early penalty free
- And the borrowers can make overpayments and pay less interest
Logbook Loan FAQs
Some lenders will assess the vehicle remotely via WhatsApp. This means if everything checks out and you pass the affordability checks the loan could be paid on the same day.
Yes, there are a number of logbook lenders that allow you to apply online.
Cash convertors do not provide logbook loans. However Cash Convertors and their franchises introduce customers to Logbook Money Limited, who they may receive commission from for successfully funded loan applications.
Logbook lenders in the UK often offer amounts from £500 up to £50,000. How much you can get will depend primarily on the affordability checks carried out by the lender but also the value of the vehicle.