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A wise guide to…

Logbook Loans

Logbook loans are loans secured against your vehicle. If you are considering a logbook loan learn more about them and compare alternatives with Choose Wisely.

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Representative 99.8% APR (fixed). Representative example: If you borrow £500 over 52 weeks at a Representative rate of 99.8% APR and an annual interest rate of 99.8% (fixed), you would pay 52 monthly instalments of £13.41. The total charge for credit will be £197.32 and the total amount payable will be £697.32.
Choose Wisely is a trading style of Choose Wisely Limited and is a free to use price comparison website. Choose Wisely Limited is authorised and regulated by the Financial Conduct Authority as a credit broker not a lender, firm reference number 730574 and is registered with the Information Commissioner’s Office number Z3106681.

A quick, easy way to get a logbook loan today.

  • Borrow from £300 to £10000.

  • Choose between lenders who have accepted your application.

  • Absolutely no fees, ever.

Representative 49.7% (variable).

How to get a logbook loan in 3 simple steps.

Affordability assessment.

1 form - takes 2 minutes to complete and your data is 100% secure.

Compare products.

Choose from lenders that have accepted your application.

Speedy finance.

If approved, the cash can be in your account in as little as 15 minutes.[†]

Table of contents

Written by Andrew Freelander
Read time: ~5 mins
Published: 27th March 2017 Updated: 29th September 2020

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 poor 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.

Is a v5 the same as a logbook?

Yes. The correct name for a V5 is a V5C and this is the logbook of a vehicle. The V5C is the physical document issued by the DVLA when a vehicle is registered in the UK. It exists to provide details of the vehicle's registered keeper.

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.

LoanOnYourCar.com is the UK’s leading Vehicle Equity Release specialist and we helped 1000’s of car owner releases the cash from their car. We offer a quicker, cheaper, and more flexible Logbook Loan Alternative, whilst allowing the borrower to still use their vehicle for the duration of the loan.

Paul Hilburn
Sales Director
LoanOnYourCar.com

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

Apply with LoanOnYourCar.com

The logbook loan alternative with no home visit. Representative 204.28% APR

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

Logbook Loan FAQs

Can I get the loan on the same day?

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.

Can I get a logbook loan online?

Yes, there are a number of logbook lenders that allow you to apply online.

Do cash convertors do logbook loans?

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.

How much can I get with a logbook loan?

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.

What do I need for a logbook loan?

To apply for a logbook loan you obviously need your logbook, known as your V5C. Lenders will have to collect details about your income and personal circumstances, so ensure you have the necessary information to hand when filling out an application form.

Written by
Andrew Freelander
Brand & Content Manager at Choose Wisely

Andrew joined Choose Wisely 5 years ago, originally working in a design capacity to make sure the website was simple to use. Most notably he worked with the Consumer Finance Association to design the comparison table of choice for High-Cost Short Term Finance products.

The quickest way to find the best logbook loan for you.

No obligation. 100% secure.

Important Information.

All of the information in this guide is correct at the time of writing.

Rates shown are quotes based on your personal circumstances, are subject to status and are available to those aged 18 and over. Rates available range from a minimum of 3.9%APR to a maximum of 1575%APR Representative and loan repayment periods range from 3 to 60 months.

[*][†] Once accepted, your loan can be transferred to you in as little as 15 minutes. The time that it takes for the loan to show in your bank account will depend on your lender and your bank.

If you need financial advice you can visit stepchange, speak to citizens advice, call the national debtline or speak to moneyadviceservice.org.uk.

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
Your score can be accessed for free via any of the main credit reference agencies such as Credit Karma, Clearscore or Experian.

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk