At Personal Loans Now, we want to encourage responsible borrowing and lending. We are an FCA regulated direct lender, specialising in personal loans. If you’re looking for a quick decision and funding on the same day, click the Apply Now button and we’ll find a personal loan for you that matches your affordability and needs.
What Are Logbook Loans?
A logbook loan is a short-term loan where the borrower will put up their vehicle as security against the loan. It’s a type of secured loan, but it carries greater risk than other types because, in order to take out any money, full ownership of this asset must be transferred from the borrower to the lender.
The term ‘logbook loan’ comes from the act of handing over the logbook or the vehicle registration documents to the lender.
When you take out a logbook loan, you won’t own your car until you have paid back the entirety of the loan. You’re still permitted to drive it, but it won’t technically be yours.
How Much Can I Borrow With A Logbook Loan
The amount a lender will give you depends entirely on them. It usually starts at around £500 and depends on the value of your vehicle. Some lenders will not offer you more than half the value of your car, so bear that in mind if you do decide to look for logbook loans online.
With a personal loan from Personal Loans Now, you could borrow anything from £2,000 to £25,000, depending on approval with same-day cash into your bank account.
What Are The Risks Of Taking Out A Logbook Loan
A logbook loan comes with many risks and should almost definitely be considered only as an absolute last resort.
You could lose
If you miss any payments, you are at risk of having your car repossessed straight away. The lender is required by law to send you a default notice which you have 14 days to respond to, but in most instances, it will be seized. If the lender has registered the Bill of Sale with the High Court they don’t even need to take the debt to court for permission to do this.
The average APR on a logbook loan is currently sitting at around 400%. If you took out a £2,000 logbook loan online, for a period of 18 months, you’ll be paying back £10,068, which means you’ll be charged £8,068 in interest alone.
Not very well protected
as a consumer
There’s very little regulation of logbook loans, and creditors don’t tend to carry out credit or affordability checks in most instances. With the interest rates on this type of loan as high as they are, most will struggle to pay back this kind of sum and could end up defaulting. Debt collection tactics in these instances by lenders and their agents can be incredibly aggressive and they are allowed to ask bailiffs to act on their behalf.
Should I Purchase A Personal Loan Or A Logbook Loan Online?
If looking for logbook loans online is something you’re doing, you may be dealing with serious money problems. There is personalised, professional advice available to you from various debt advice charities such as the Money Advice Service; contact them today for more information.
At Personal Loans Now, we want to encourage you to make the best decision for your financial situation. A personal loan is an unsecured loan, which means none of your assets are used as collateral for securing the finance. As responsible lenders following FCA guidelines, we carry out affordability and credit checks to ensure taking out this loan isn’t going to be a severe risk to you.
We also offer guarantor loans for bad credit, and if we can’t offer you a loan, as a lender and broker, we will try to find you a creditor who can provide you with the funds you need. Apply today for a personal loan and keep hold of your vehicle with Personal Loans Now.