Looking to take out a loan against your vehicle? Logbook loans offer a fast financial solution for car owners in need of a quick cash injection. Free up some money locked into your vehicle and find the financial solution you need with the best Logbook Loans. Decisions are instant and with a high acceptance rate, you could have the money in your bank on the same day.
What Are Logbook Loans?
Logbook loans are a form of car finance taken out against your vehicle. It doesn’t have to be a car either, if you own a motorbike, van or another vehicle. You could still be eligible for car logbook loans providing you are the registered keeper. These easy logbook loans enable you to utilise your vehicle as a security for a loan. This is in order to borrow more money than with an unsecured alternative. It will help to get reduced interest rates for a more affordable loan or to be accepted at all. Those with poor or limited credit may find that secured finance is their best option. Secured finance ensures less risk to the lender because of collateral added to the loan term.
How Does Logbook Loans Online Work?
Logbook loans work in the same way as any other secured finance. You’ll apply for the loan and secure its value against your car. But it will require you to transfer ownership to the lender for the duration of the loan. In some cases, you’ll need to physically send or hand the logbook over to the lender. They will keep it secure for the length of the loan after which it will be returned to you and the vehicle will remain yours.
Some logbook loans direct lenders won’t require you to hand over the logbook. But ownership will still be technically transferred regardless. In these cases, they could ask you the reference number on the logbook in order to confirm its legitimacy.
Can I Still Drive My Car With A Logbook Loan?
The car loan itself will only require you to send the logbook. The car itself will be yours to keep and use throughout the loan duration. This means you can continue with your everyday life without any disruption. You can still legally drive your vehicle providing it is still insured and taxed. All you need to do is manage your loan repayments.
You should be aware that if you default on payments, your vehicle may be repossessed. We work with you to the best of our ability to ensure you’ll be able to maintain the loan from the start and not risk losing your vehicle. All our lenders perform initial affordability checks to determine how well you’ll be able to manage repayments. We can also direct you to free debt advice for help if your financial situation changes. However, it’s important to be aware of the risks regardless.
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How Much Can I Borrow With Logbook Loans Online?
The amount you can borrow will depend on the lender you choose as well as the value of your car. Most of our lenders offer logbook loans online of over £1,000 up to £25,000 but may offer more in cases where the car’s value exceeds this. They’ll take the market value of your vehicle when determining your eligibility for a logbook loan. But in most cases, it will need to be worth over £500 for any lender to offer finance against it.
The higher the value of your vehicle, the more you can borrow. However, it’s important to note that your repayment period may need to be longer as a result. Logbook loans online don’t have any set repayment period as standard. Lenders can offer different periods depending on what you want and your financial state at the time. If you want to take out a loan of less than your car’s worth, lenders may still offer the loan. But be aware that your car can still be repossessed if payments are missed.
What If My Car Is On Finance?
If your car is still on finance, you will generally be declined for logbook loans, with some exceptions. Most lenders may not be willing to offer logbook loans online unless you have paid off the entire finance plan. However, others may still be willing to lend to you. While your car is under finance, the vehicle isn’t technically yours. As with any kind of secured finance, you risk losing the vehicle if you aren’t paying off what’s owed. For this reason, taking out another loan against your vehicle could be too high of a risk.
Some lenders may offer logbook loans if there isn’t much finance left to repay. They can also offer this if the payments are small or where the finance provider can provide permission. This isn’t guaranteed, however, so it’s best to speak to your finance provider before applying for logbook loans online.
Apply For Logbook Loans With Personal Loans Now
We are proud to offer logbook loans to all eligible individuals in a fast, safe and efficient way. With just one application, you can apply for the most competetive logbook loan rates on the market in just a few minutes, receiving an instant decision. You can decide for yourself which logbook loans are best for you.
We are proud to have high acceptance rates, with a core aim to make finance accessible to everyone. This means that even if you have poor credit, you could still be eligible for one of our logbook loans with bad credit. This includes credit union loans for example, if you pass our lenders’ affordability checks and prove you can manage the loan you are applying for.
Logbook Loans FAQs
Can You Get A Logbook Loan With Bad Credit?
If you have bad credit, you could still be eligible for logbook loans if you’re in a strong position to manage repayments. Lenders will take into account your income, existing finances and your employment status. They’ll also consider the value of your vehicle when determining whether you can afford the loan. This ensures that every borrower a fair chance, especially when they need the money most.
Due to the risks with logbook loans, you should always proceed with caution when applying if you have a history of missing payments. While our lenders do conduct checks, we can only make decisions based on what we can see. Only you’ll know whether you can truly manage repayments. You should avoid applying for a loan if you believe you may default.
Can I Sell My Car If I Have A Logbook Loan On It?
If you have a logbook loan on your car, it is not under your ownership for the duration of the loan. Therefore, it would be illegal to sell that vehicle during that time. If you were to sell it, the lender can repossess the vehicle from the new owner without a court order. The new owner could instead take out a court order against you for selling the car to them illegally.
In most cases, a dealership will not purchase the vehicle from you if it is not registered under your name. You should always pay off logbook loans for older cars before selling the vehicle.
Are Logbook Loans Online Secured or Unsecured?
Logbook loans are a form of secured finance, as you will be taking out the money against your vehicle. This may result in lower interest rates than an unsecured alternative of the same value. However, you’ll need to bear in mind that your vehicle will be used as collateral if you can’t make repayments. Most lenders won’t repossess your vehicle after a single missed payment. However, it is important to ensure you are keeping up with the repayments regardless. You should contact your lender if your financial state changes for any reason. This way, you can discuss an alternative solution to settle the arrears.
Are Logbook Loans Safe?
Logbook loans, as with any secured finance product, come with risks. Providing they are managed correctly, they are completely safe. The FCA issues caution to consumers looking to take out logbook loans due to the risks of losing your vehicle. But providing that repayments are met, the vehicle’s logbook will be returned to you as the final payment is made.
As with any loan, such as holiday loans, you can often repay early if you can afford to. But be aware of any additional early repayment charges which may differ between lenders.
Can I Get Logbook Loans on Benefits or if I’m Unemployed?
Your ability to take out logbook loans on benefits or if unemployed will depend on your finances. You could still be eligible for the loan if you own the vehicle and you have finished your car finance payments on it. If you have ongoing monthly income from a pension or regular income support allowances, your lender will examine your profile and give you a decision. Every customer’s situation is different, so this must be assessed on a case by case basis. While some customers on benefits or unemployed customers may be eligible, others may not.