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Logbook Loans

Author: Harry Jones And Facted Checked by : Shanie Capper
Last updated on : 31 August 2023

Understanding the world of finance can sometimes be a challenging task. Amongst various borrowing money options, one type that is particularly popular in the UK is the “Logbook Loan”.

Logbook loans are a type of secured lending in the UK

What is a Logbook Loan?

Logbook loans are a type of secured lending in the UK. This form of borrowing allows individuals to use their vehicle as collateral, which means the loan amount is directly related to the value of the vehicle. The logbook, or V5C document, which proves your ownership of the vehicle, is given to the lender for the duration of the loan term.

Benefits and Risks of Logbook Loans

Logbook loans can be a quick way to borrow money, especially for those with a poor credit history. However, it’s essential to keep in mind that the risks involved are significant. If repayments are not met, the lender can take possession of the vehicle. Therefore, it’s crucial to consider all aspects of this borrowing option, including its potential implications for your financial future.

Whether it’s to consolidate debts, carry out home improvements, or manage an unexpected expense, understanding the ins and outs of logbook loans can help you make informed financial decisions. In the next section, we’ll look at various companies offering logbook loans in the UK.

Companies Offering Logbook Loans in the UK

There are a variety of companies in the UK that specialise in offering logbook loans. Each provider has its own set of terms and conditions, so it’s essential to carefully read and understand these before proceeding.

Mobile Money

Mobile Money is a long-standing provider of logbook loans in the UK, established in 1998. They offer loans from £500 to £25,000, with repayment periods from 18 to 48 months.

Car Cash Point

Car Cash Point prides itself on providing a personalised service to its customers. They offer loans up to 75% of your vehicle’s trade value, and there are no hidden charges or penalties for early repayment.

Logbook Loans 247

Logbook Loans 247 offer loans from £500 to £50,000, with the amount being based on the value of your vehicle. Their repayment periods range from 12 to 36 months, and they offer an online application process for convenience.

Auto Advance

Auto Advance offers logbook loans for amounts from £500 up to £25,000, subject to affordability checks. They offer flexible repayment periods from 12 to 36 months, and you can choose to make your repayments weekly, fortnightly or monthly.

Varooma

Varooma is another provider that offers loans based on the value of your vehicle. They pride themselves on offering competitive rates and also offer a 14-day price promise.

Please note, while My Quick Loan provides various forms of quick loans, we do not offer logbook loans. It’s important to thoroughly research all your options before deciding to borrow money, ensuring you’re choosing the most appropriate type of loan for your circumstances.

Frequently Asked Questions About Logbook Loans

logbook loans UK

What are Quick Logbook Loans?

Quick logbook loans are a type of secured borrowing where a vehicle’s logbook is used as collateral. The borrower grants the lender temporary ownership of their vehicle, but they can continue to use it as long as they keep up with their repayments. These loans are often processed quickly, making them a popular choice for people in need of immediate funds.

What happens if I can’t repay my logbook loan?

If you’re unable to meet the repayments on your logbook loan, the lender has the right to seize your vehicle to recoup the debt. This could be sold at auction, and if it doesn’t cover the outstanding loan amount, you may still be liable for the remaining balance. It’s essential to consider this risk before taking out a logbook loan.

Can I get a logbook loan with bad credit?

Many lenders offering quick logbook loans will consider applications from those with poor or no credit history. This is because the loan is secured against your vehicle, reducing the risk for the lender. However, the interest rates may be higher compared to loans offered to those with good credit.

How quickly can I get a logbook loan?

The speed at which you can get a logbook loan depends on the lender. Some lenders might offer same-day funding, while others may take a couple of days. Always check the lender’s processing times if you’re in need of quick funds.

Can I pay my logbook loan off early?

This depends on the terms and conditions set by the lender. Some lenders might allow you to repay the loan early without penalty, while others might charge an early repayment fee. Always check the terms of the loan before you proceed.

Remember, while logbook loans can be a quick way to borrow money, they come with a high level of risk. Always consider all your borrowing options before proceeding.

My Quick Loan and Logbook Loans

At My Quick Loan, we understand that financial needs vary from person to person, and while we provide a variety of fast loan options, logbook loans are not among our offerings.

Logbook loans involve a significant level of risk, as they require your vehicle to be used as collateral. While they can be a convenient source of quick funds, the potential for losing your vehicle if you can’t meet repayments is a severe consequence that borrowers must consider.

My Quick Loan’s focus is on quick loans that are less risky for our clients. Our goal is to provide solutions that meet your urgent financial needs without putting your assets at risk. We offer loans up to £5000, and these can be used for various purposes, from unexpected expenses to short-term financial shortfalls. While the interest rates on these loans might be higher compared to some other forms of lending, they don’t involve the potential loss of personal property that comes with a logbook loan.

 

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Warning: Late repayment of payday loans can cause you serious money problems. For help, go to moneyhelper.org.uk.

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