This site is designed to help you find a logbook loan that might be suitable for you, if you own a car and need some quick cash.
What is a logbook loan?
A logbook loan is an arrangement between yourself and your lender to release some cash at a given amount, borrowed at a given interest rate, that is secured against your car.
Usually logbook loans (the balance of which) can range from £500-£50,000 and the repayment terms can be up to 5 years.
Are there any credit checks?
No. A logbook loan does not require a credit check due to the fact that the loan is already secured against your car, however be advised, if you default on the loan and refuse to repay the cash you have borrowed, and do not reach a repayment plan, it is possible that your car might be repossessed so that the lender can recover their costs.
Is it easy to get a logbook cash loan?
This really depends on whether or not you fit the criteria, you must have a car that exceeds the value of the loan you wish to borrow, and also this must allow for a certain amount of depreciation given the fact that the car may well deteriorate in value during the repayment period, it really depends on whether or not you own a car & also the value of that car and your willingness to enter into the agreement.
It is unfair of loans companies to claim that a loan is ‘easy’ to get, or not, purely because it is dependant on the applicants’ personal circumstances, however if a loan is something that you are interested in, making an application can help you reach a decision from the lenders as to whether or not you will receive the loan.
I have been refused elsewhere, is it possible I will get a loan here?
Provided that you own a valid, working vehicle it is highly likely that you can get a loan to some amount as a result of submitting your details to this website, the interest rates will be provided to you before you agree to the loan so that you are fully aware of the agreement you are undertaking before you take on the finance, and before you sign the agreement.
How much can I borrow?
The loan amounts provided are usually between £50-£5,000 in amount, if you wish to borrow more this may or may not be possible and you can contact us in order to verify this.
If I default on the loan, will my car be repossessed straight-away?
Usually the repossession of a vehicle is a last resort, there will likely be multiple attempts by the lender to arrange a repayment plan with you. One thing we make clear is that it is not the desire nor the intention of the lender to repossess your vehicle, however in the event of a default and no ulterior provision is provided to make the repayments, the finance will be recovered through the use of appropriate action, which may in some cases mean the repossession of your vehicle. It is important to use logbook loans responsibly when considering undertaking them as a financial arrangement.
It is advised that anyone seeking a logbook loan exercise caution before making this decision, this is because there are implications of non-payment which could result in the repossession of your vehicle (the financial arrangement “logbook loan” is secured against your vehicle.)
Please exercise caution before taking out any financial arrangement, as stated before it is neither the desire nor the intent of the lender to repossess a vehicle.
What Purpose Do Most People Use These Loans For?
Most people use logbook cash loans as short term cash bridges, it is a financial arrangement that is usually used by individuals who have applied for cash elsewhere but have been refused credit.
Most people only borrow small sums of money also, because many find that it is much more manageable for them in terms of handling the repayments once the loan is taken out.
Does my Vehicle Qualify?
This depends on the vehicle’s value and the condition of the vehicle, it is possible that an agent will be sent to assess your vehicle in order to check if the vehicle is suitable for the loan you are applying for.
Usually, logbook cash loans are available for up to 70% of the total value of the vehicle being proposed as security, however you must be the owner of this particular vehicle with no ambiguity as to (who is) the owner of the vehicle, it is also important that there is no outstanding finance on the vehicle, it must be 100% owned by the applicant to qualify.
Does The Vehicle Need To Be A Car?
No, the vehicle can be a van, motorbike or a car, we can offer loans to anyone with a vehicle of any description (provided it meets the qualification criteria we set for each loan).
Is It A Good Idea To Get A Loan Of This Nature?
This is something that in the general sense, the individual will need to decide for themselves because of their personal circumstances, but here we list some key things that you should consider before taking out a loan.
1. Making sure you can afford the repayments – this is absolutely essential from the outset, because a logbook arrangement has additional implications (see above) in the event of a payment issue, which could (in extreme cases) result in the repossession of your vehicle.
2. Personal character – This is not the type of loan that is a good idea for someone who isn’t serious about their personal obligations and responsibilities, this is for the reasons mentioned above.
3. Can you get a better deal elsewhere? – Is there another loan where you can pay a lower rate of interest? Is there someone else you know who would be willing to loan you some cash? Usually logbook loans have a high interest rate, so you may be wise to shop around before applying for a loan of this nature.
4. Can You Borrow Less Than The Amount You Are Thinking Of Applying For? - Simply put, you should borrow the minimal amount that you need to borrow, basically because in the long term it will cost you much less if you borrow less, as the amount you pay in interest over time in repayments is proportionate to the amount of money you have borrowed in the loan you have taken out.
Is Logbook Finance More Available Than Other Kinds Of Loans?
Logbook agreements are usually easier to administer to borrowers because the loan is secured against collateral, this is not an unsecured personal bad credit loan, it is secured against an asset, with an interest rate that is workable and reflects the risk of lending money to the demographic of this market.
The interest rates involved, along with the fact that the loan is secured against a vehicle, CAN make a loan of this nature more viable than other types of finance (for people with bad credit with a vehicle they can produce as collateral), however this is still subject to the underwriting procedure that will take place once the client submits an application for a loan.
Is A Logbook Loan Considered A “Loan For Bad Credit”?
Yes, these kinds of loans are designed for people who have a bad credit rating that are looking for emergency means of financing.
The interest rate can be high in comparison to other loans to reflect the calculated risk of lending money to people in this demographic, but also taking into consideration the fact that the vehicle will be secured in the agreement as collateral.
How Is It Possible For A Car To Be Put Forward As Collateral?
This is done through the “Bill Of Sale Act” which was developed in 1854.
This “bill of sale” is a document that is a declaration of sale of a given asset (that is legally owned by the seller, the seller must be the legal owner) at a time, place, and of a given value, that is classed as a legal document that acts as a receipt.
This enables the creditor to administer a loan secured against a property or possession, or asset.
It is a “conditional bill of sale” that means that if the person taking out the finance for whatever reason defaults on the repayments, in extreme cases the value of the loan taken can be recovered through the repossession of the vehicle that is put forward as collateral before agreeing to set up the transaction.
This is a major reason why it is so critical that people wanting finance of this type are happy with the terms and conditions, because in the event of payment issues, that could result in a repossession of the vehicle.