Logbook Loans are only for cars – right? *WRONG!*
Until recently, many people had not heard of logbook loans. In fact they could perhaps be described as the financial industry’s best kept secret!
In case you’re still not sure, let’s just explain what a logbook loan is. First you need to understand the term logbook. A logbook is a document issued by the DVLA. It is also known as a V5 certificate. It contains official information about who owns the car and who is the registered keeper of the car.
A logbook loan is simply a personal loan that is secured against your vehicle. What this means is that the lender will lend you the money you need but will hold the logbook (your V5 certificate) of the vehicle until the loan is repaid. They have the legal right to repossess your car if you are unable to repay the loan.
Logbook loans have benefits to you as a borrower and to the loan company.
The benefits to you are:
- You can borrow between £400 and £50,000;
- You can use the value of your vehicle without having to sell it;
- There is no indication to anyone else that the vehicle is being used as security for a loan – you get to keep the vehicle and drive it as normal;
- Because the loan is secured, you might find it easier to get a logbook loan rather than an unsecured loan;
- There are flexible repayment terms of 12 months to 36 months, and you can repay us by debit card, bank payment or in cash at any of our branches.
The advantage for the lender is that if anything goes wrong and you are unable to repay the loan, they then have the last resort option of claiming your vehicle to get their money back. But this is indeed a last resort option, and most logbook loan companies will do their utmost to work with you and find a better solution to the problem.
Coming back to our original question, what many people do not realise is that logbook loans can be secured against a broad range of vehicles, not just cars. At Logbook Loans we also offer loans against bikes, vans, classic/vintage cars and luxury vehicles. The only criteria is that the vehicle must be roadworthy, taxed, MOT’d and insured.
We’d like to take a moment to draw particular attention to our Privilege Logbook Loan. If you own a luxury or high value vehicle then you will find a Privilege Logbook Loan an excellent product. It works along the same lines as our other logbook loans but because your vehicle is higher value, we are able to offer a lower interest rate of just 4% per month. With our Privilege Logbook Loan you are able to borrow between £1,000 and £100,000 over 36 months.
We hope that you now know what a logbook loan is and the kind of vehicles that are eligible for a loan from Logbook Loans. If you are interested in taking out a logbook loan with us then get in touch with us today to find out more!