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Jan 17

Your complete guide to a logbook loan - Find out all you need to know!

Posted by:AutoMoney

If you have never borrowed money before you may be overwhelmed by the many options available. One lending opportunity that a lot of individuals have at their disposal is a logbook loan. This is a loan that is secured against your vehicle. If you fail to make the repayments agreed upon in the contract, the lender can use your car as collateral against the loan. The mechanics are pretty self explanatory. But, how much can you borrow? Who can apply for this type of loan? How long does it take for a log book loan to be approved? Read on to discover all you need to know...

Who can apply for this type of loan?

One of the best things about a logbook loan is the eligibility criteria. This does not mean that virtually anyone will be accepted. However, those who have bad credit history or no credit history may find that their application is approved. You will of course need to be over the age of 18 years old. You will need to prove that you own the car and that it has been paid for in full. In addition to this, evidence that you are able to make the repayments is essential. You may find that certain lenders ask for further documentation yet this is what is generally required.

How much money can you borrow?

Again, this is variable, however most lenders offer 70 per cent of the car’s current value. Thus it all depends on the vehicle you own. In real terms this means you can borrow something as small as £250, yet you can also lend several thousands of pounds if you need to. It is important to note that you will not be forced to borrow the full amount available to you.

How long does it take for a logbook loan to be approved?

Unfortunately this is not something that can be calculated. Every application differs. One may be approved quickly whilst another may require further investigation. Moreover, whilst one company may deal with hundreds of applications another may only have a few. However, one thing that can be determined is the speed at which the money is deposited into your bank account after the approval of your application. There are some companies that promise to do this within the hour.

What happens if I fall behind on a repayment?

As mentioned; the lender has every right to seize your car should you fail to meet the agreements that have been put in place. Will they? It all depends on the company in question. Some may well take your vehicle, others may charge you interest, and so on and so forth. Nevertheless, this is something that will have been discussed prior to the agreement of the loan.

Hopefully the four points that have been touched upon will have helped you to understand what a logbook loan is and who can apply for one. If you are looking to borrow fairly small amounts of money then this is the ideal option for you.

Summary – A logbook loan has become a very popular method of borrowing money. But what exactly is this type of loan? And, more importantly, is it right for you? This article will provide you with all of the answers you are looking for.

Borrow with confidence

Borrow with confidence

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350.5%APR Representative
Representative example: Loan amount £1000. Duration 18 months. Repayable by 16 monthly repayments of £170.42 and one of £198.42 (includes Bill of Sale registration fee of £28) commencing two months from the date of the loan. Total amount repayable £2925.14. Rate of interest 187% per annum fixed. Representative 350.5%APR. LOANS ARE SECURED ON YOUR CAR. The vehicle may be repossessed if you do not keep up the repayments.