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- How Do Our Log Book Loans Work?
450.5% APR REPRESENTATIVE
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How Do Our Log Book Loans Work?
About Logbook Loans
What is a Log Book Loan?
Before understanding what a log book loan is, you need to know what a logbook is. A logbook (more commonly known as a V5C or vehicle registration document) is a document which records key information about a vehicle and its keeper.
When someone sells a vehicle, they enter the details of the new keeper on the second page of the logbook and post it to the DVLA to notify them of the change.
A logbook loan is a loan secured against your vehicle enabling you to release cash from your vehicle. Your vehicle is the security in the loan which enables this type of lender to often lend where more traditional finance sources are unable. When you take out a loan with a logbook lender, they will ask you to provide the original logbook (V5C), which will be held for the duration of the loan. As soon as the loan is settled, this is sent back to you. That is how this type of lending has become known as ‘logbook lending’.
Continue to enjoy the freedom of your vehicle
Most log book loans are secured against your vehicle using what is called a bill of sale, in England and Wales. When you take out a logbook loan you sign a loan agreement to borrow the money and you also sign a bill of sale which transfers ownership of the vehicle to the lender for the duration of the contract. But don’t worry: you can continue driving the vehicle as normal while you are repaying the log book loan. For more information about bills of sale click here.
In Scotland, the principle behind a log book loan is the same but the paperwork differs. Rather than using a bill of sale, you sign a sale agreement transferring ownership to the lender and then they hire the vehicle back to you under a hire purchase agreement. Again, you continue driving the vehicle as long you maintain your payments.
Why choose us for a log book loan?
We put our customers at the centre of our product design. Our Logbook Loans are built so that your agreement fits comfortably into the way you manage your finances. When you apply we take you through all the options available to you. Here are just a few:
Is a logbook loan right for you?
You should always think very carefully before entering into any type of financial commitment. Taking out a log book loan can carry some associated risks, but we guide you through all avenues before you commit to a logbook loan.
While weighing up whether to get logbook loans, you should consider both the benefits and the risks. A logbook loan is secured against your vehicle, which means if you aren’t able to maintain your repayments your vehicle might be at risk.
If you’d like to see out how much you can borrow, over what period and what your monthly repayments are likely to be, head over to our logbook loans calculator!
We always do everything we can to help customers facing a change in circumstances, or other personal difficulties, that affect their ability to repay. However in taking out a credit agreement you are agreeing to make repayments as outlined in that agreement.
If you don’t keep in contact with us to discuss any arrears on your account, we may be left with no option but to recover your vehicle. However, we always do our very best to help you through difficult times; as long as you do your best to work with us. Your successful repayment of your loan is our ultimate goal.
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DISCLOSURE: This site is operated by Loans 2 Go Limited t/a Logbook Loans, a company registered in England and Wales (registration number 4519020), at Bridge Studios, 34a Deodar Road, London SW15 2NN, which is an active member of the Consumer Credit Trade Association and is authorised and regulated by the Financial Conduct Authority. Warning: Late repayment can cause you serious money problems. For independent help, please go to Money Advice Service