A logbook loan is a type of financial agreement whereby the borrower’s vehicle is used as collateral against the loan. Basically, it works by having the vehicle’s V5 document or “logbook” transferred to the lender’s possession, keeping it while the borrower is yet to pay off the debt. The logbook is returned after the loan is paid off successfully.
We have a representative APR of 131%, the lowest you’ll ever find in the market. This amount is not fixed, however, because it still depends on your principal amount and the length of your term. Still, we are confident that we offer is one of the cheapest rates around.
You can borrow anywhere between £500 and £25,000 which you can use for both small and huge expenses. Your vehicle will be appraised to determine its value, and most of the time you can borrow up to 50% of its worth. Definitely, the better your car make, and the younger your vehicle is, you’ll have a better chance at qualifying for a higher loan.
Still, your vehicle price isn’t the only factor to take a look at. We will never want you to get into a worse financial situation than you were in before because of your loan from us. If anything, we genuinely want to give you a room to breathe and settle financial emergencies now. Thus, we won’t let you commit to one of our deals if we don’t believe you don’t have the capacity to pay, and will only let you borrow as much as you can afford.
Our loans stand between 12 and 72 weeks. Many experts will argue that you should pay the loan off as soon as you can, and while short term loans are most ideal, we don’t plan on forcing you to shorten your terms if you don’t have the means to repay timely.
You become the keeper of the vehicle while we become the registered owner, but only temporarily. Don’t worry as you can get your car back after the loan is paid off in full. Additionally, you can keep on driving it, even while the loan is still in force.
You should keep in mind though that you will be responsible for any damages sustained by your vehicle while it is in your possession, so make sure that it is covered by your insurance policy.
Definitely! If you have the cash to pay off the loan fully, just let us know and we’ll happy to terminate the agreement, without any cost to you. In fact, we are only one of the few lenders who do not charge any termination or early settlement fees.
If you miss a payment, we’ll politely notify you so that you’ll be reminded of your due date. We may allow up to three late payments before we take any further action. We advise letting us know if you’ve encountered any difficulty meeting your dues, so that we can come up on a reasonable arrangement with you.