You can normally borrow between £500 and £50,000, depending on how much your car is worth. Although some firms will only lend up to half of your car's value.
When you take out a logbook loan, you'll usually be asked to hand over your vehicle's logbook or vehicle registration document.
These are the documents that prove you are the registered keeper of the vehicle.
But even if you don't, you're still handing over ownership of the car until the loan is repaid.
A Logbook Loan is a loan secured against your vehicle. It allows you to unlock the value in your vehicle without having to sell it. The lender holds on to your V5 logbook for the duration of the loan, but you get to keep on driving it as normal. Once you have repaid your loan, you will receive your V5 logbook back.
The amount you are eligible for will be calculated based on the value of your vehicle and how much you can afford to pay on a weekly or monthly basis.
lf you own your own car, van, motorbike or caravan, you could obtain a loan quickly and easily. To see if you qualify apply now and we will call you straight back to discuss your requirements.
When you take out this type of loan you have to hand over your vehicle registration document and sign both a credit agreement and a bill of sale. This means the loan company becomes the temporary owner of your car but you can continue to drive it as long as you keep up your loan repayments.
Logbook loans are advertised online and on the high street. How much you can borrow depends on the value of your vehicle. Often, you won't be allowed to borrow more than the vehicle's current value, and the logbook loan company may require an independent valuation of the vehicle before agreeing to lend you money on it.
If you're resident in England, Wales or Northern Ireland, you'll be required to sign a credit agreement and a "bill of sale". This gives the logbook lender temporary ownership of your vehicle, but you retain permission to use the vehicle as normal, as long as you keep up with the logbook loan repayments. The "bill of sale" will only be valid if the logbook lender registers it with the High Court ‾ if not, the logbook lender would need to apply to the court before seizing your vehicle if you don't repay the logbook loan. "Bills of sale" don't apply to transactions in Scotland.