What are logbook loans?
Logbook loans are loans secured on your car, whereby the lender will hold the logbook as collateral until the loan amount has been repaid in full.
The log book is the document issued by Driver and Vehicle Licensing Agency (DVLA). Logbook has several entries about the vehicle relating to the current registration mark, VIN number or the chassis number, and details about the registered keeper of the logbook.
These loans are an easy way to get money by the lender keeping your logbook as security. The amount of the loan will depend on the lender and also the vehicle value, amounts can vary from £500 plus.
To qualify for a loan there are various factors:
• Vehicle ideally less than 8 years old.
• The logbook must be in the name of the borrower
• Regular income and there must be no financial claims on the vehicle.
• Taxes and insurance due on the vehicle must be paid in full before the vehicle logbook is pledged for logbook loan.
The borrower can continue to be in possession of the vehicle, it is the logbook that is kept by loan provider for the period until which loan is repaid. The borrower is still however obliged to maintain the vehicle.
On most occasions a credit check is not required as the loan is secured on the logbook of the borrower’s vehicle.
