Logbook Loans Secured on Cars
It’s not uncommon for people to need cash at some point in their lives and releasing the money locked in your car can be a great option
Loans secured on cars or vehicles are known as “logbook loans” and they allow people to secure lending by offering their car, van, motorbike or commercial vehicle as security against their loan using a Bill of Sale. Logbook loans can often be processed within 24 hours with many loans paid out on the same day.
Why Secure a Loan Using My Car?
Generally, a car or vehicle is one of the most valuable items we own yet some people do not realise they could use this to borrow money. One popular aspect of this style of secured borrowing is that it allows the vehicle’s owner to retain the use of their car / bike / van etc. whilst repaying the loan – the lender will simply retain their V5 Document (or “Logbook”).
What Sort of Cars / Vehicles can be Used to Secure a Loan?
Using a Bill of Sale means that a loan can be secured using most types of vehicles, however in most cases it is cars that are used with vans, motorbikes and commercial vehicles also popular. In general, cars must be under 10 years old to qualify to be used as security against a loan, however we do provide logbook loans on older cars and vehicles. Older vehicles must be in an undamaged, reasonable condition to qualify. Sports cars, classic cars and prestige cars often retain a higher value, especially if their owners have invested in them and kept them well maintained, and these represent the majority of older cars used to secure a loan.
Examples of vehicles that have been put-forward as security for loans include:
- Vans(inc. Transit Vans, Luton Vans, Mercedes Sprinter etc.)
- Family Cars(inc. Ford Mondeos, Ford Focuses, Vauxhall Astras etc)
- Prestige Cars(such as Jaguar, Audi, BMW and Mercedes)
- Lorries(Various sizes such as articulated lorries and flat bed, fixed wheelbase trucks)
Can Anyone Get a Loan Secured on their Car?
We always ensure that anyone applying for a loan secured on their car or vehicle can afford the repayments and that it is a suitable financial solution – if this isn’t the case then we will not proceed. As well as the suitability and affordability checks carried out by responsible lenders there are other eligibility criteria to qualify for lending:
- The vehicle being used must be clear of any outstanding finance
- The applicant must be the legal owner of the vehicle i.e. named on the V5 document
- All applicants must be aged 18 years or over
All applicants must live in England, Wales or Northern Ireland