Turn Your Auto into Hard Cash with Logbook Loans

Logbook loans also known as V5 loans are perfect for UK residents that need to get hold of money quickly. During financial emergencies, your car can help save you from monetary crunches. Lenders will keep the logbook of the borrower’s car which is known as the vehicle registration certificate (VRC). This type of logbook loan is ideal only for those who can pay their debts at the agreed time; otherwise the lender has the right to repossess the vehicle of the debtor even without the order of the court. This makes it easier to distinguish logbook loans from car title loans.
Why Logbook Loans
A logbook loan is considered notorious because of the high interest rates. In some cases, lenders provide unreasonable terms and conditions. Although this is iniquitous for some, there are a number of reasons why logbook loans are still favored by borrowers. Unpredictable emergencies may have gotten us ill-prepared for financial woes. Our bank accounts cannot help us either which is why such loans are crucial during times of need.
This type of logbook loan is for short term requirements only. It can assist us in getting through with the short expenses. If you have a car, you can use logbook loans to obtain money. The debtor is free to exploit the logbook loan money to pay for school fees, grocery bills, hospital bills, home improvement, car repair and credit card dues among others.
Application Process Constraints
There are lenders that you can visit at their offices to learn more about their logbook loan prerequisites. There are also online firms where you can borrow money from. Though companies have different terms and conditions for logbook loans, they usually require the borrower that he or she is a permanent resident of the United Kingdom. A logbook loan also requires that you are at least 18 years old and posess a car that is not above 8 years old.
Having a permanent source of income as well as a valid bank account is mandatory for a logbook loan. There is no specific type of car that you have to own. Therefore, you can use a van, truck, caravan or whatever you may have at your garage as long as it meets the age requirement. These firms will look at the car’s ongoing dues so it is crucial that payments are nonexistent at the time you borrow money for logbook loans. Furthermore, the vehicle should not be restricted by any judiciary or administrative law. You might also be compelled to present other documents such as MOT certificates, residential proof, income proof and other account details to get quick approval for your logbook loan application.
Quick Helpful Cash
Probably the best thing about logbook loans is the fact that the borrower can get the money that they need in as little as 15 minutes. You can find online sites that match the amount of money that you call for. Some provide £200 of cash assistance while others give as much as £50,000. In addition, those with bad credit history with arrears, foreclosures, defaults, IVA, declared bankruptcy and late payments can still get fast logbook loans.
To avoid problems in this scheme, you are given the choice to pay the money you have borrowed on the same day. This is convenient for those who only loaned money to pay for groceries or other sudden necessities. This is often compared to payday loans because these two almost have the same concept except that you will be using your car as collateral in logbook loans.
If you follow all the rules and the conditions set by the lending company for a logbook loan, you will not face issues such as repossession. It is definitely a handy system because you can apply for a logbook loan 24/7 at the comforts of your home.

Logbook Loans Reviews and Complaints

Logbook loans are a relatively simple and straightforward form of credit in the United Kingdom. Different from payday loans, logbook loans use your vehicle (and your logbook document, or your V5c registration document) as collateral in case you should default on the loan. You see when you get a logbook loan you can get a loan at a lower APR rate, and you can get access to more funds than you could with a simple payday loan. The reason for this is that, unlike those other loans, a logbook loan is leaning on your vehicle as insurance that you pay what you owe.
Looking at it that way, logbook loans are fairly simple to understand. However, there are still complaints and problems with logbook loans, both from the side of the lender as well as from the side of the customer. Many of these problems aren’t unique to this form of loan, but there are still cautions that need to be taken.
For instance, logbook loans can be used to pay for nearly anything. Whether you need to repair your home, or you’re scraping up money for plastic surgery, one of these loans will more than suffice your purposes. Because of this width of field the lender should be concerned with what the borrower needs the money for. Unlike a more standard bank loan though, logbook loans are made fairly quickly, and the amounts can reach up to 50,000 pounds depending on the make of the borrower’s vehicle. That’s a lot of money to let walk out the door if the person is using it for something non-essential. Then again, this could be said about any type of loan.
Logbook loans, as mentioned, are determined based on the value of the borrower’s car. For the lender this provides a bit of security, and it lets them rest easier knowing that even if the person that borrowed money defaults, the lender still has something that can be used to pay back the loan. For the borrower though, logbook loans may not be the solution that they’re talked up to be. For instance, say you need money to fix your home, but you drive something older and of middling value. You can get money this way, but it may not be enough. Worse, if you accept this loan and then have to get another (bad practice in general) then you’ll have several debts to pay back rather than the one.
When used properly as a financial tool, logbook loans can turn your car into a thing of value that helps you get the money you need on time and quickly. However, logbook loans are typically aimed at those with lower to bad credit, which begs the question of just how wise a lending institution is to give large amounts of money to those that have been irresponsible in the past, or who have made very poor financial decisions. On the other hand, these loans are a much better tool for the lender, since logbook loans do provide an “if all else fails” route, just in case the loan never gets repaid.

Logbook Loans vs Payday Loans

The use of logbook loans and payday loans is quite common these days. Some people argue that logbook loans are beneficial while others hold that payday loans are a better choice. However, each of these loans has its own benefits and drawbacks.
Logbook loans and their advantages
Logbook loans are secured against the vehicle document or car logbook. The borrower can avail up to about 1,000,000 dollars as loan and the time of repayment is longer. In order to obtain a loan, the borrower must be at least 18 years, have a decent income source and own a finance-free car. The process of application is completed within two business days. The lender provide loan after determining the value of the car. The borrower has to provide his income proof, sign some documents, leave his car logbook with the lender and get the loan amount.
Disadvantages of logbook loans
However, if the borrower fails to pay the loan, the lender can sell the car and settle his loan against the sale proceeds. Moreover, if you need money the same day, you may not opt for these loans because the process of application and lending usually takes two to three days.
Payday loans and their benefits
Payday loans are a short-term loan facility which is useful in solving small and urgent financial obligations that come up between two paychecks. These are unsecured loans and the amount of loan ranges between 100 dollars to 3,000 dollars. Any person, who is above 18 years of age, has a gainful employment and a checking account can apply for a payday loan. The process of application is quite simple and quick. If the application is approved, money is quickly transferred in the checking account of the borrower within couple of hours through wire transfer. The borrower is required to repay the loan on his next payday.
Drawbacks of payday loans
However, the rate of interest is very high ranging from 20 percent to 40 percent per month. Moreover, a borrower has to bear late payment charges and other fees.
Comparison of logbook loans and payday loans
Payday loans are relevant for small short term emergency expenses between two paydays while logbook loans are perfect for big purchases and major expenses. The time of repayment of logbook loans is much longer compared to payday loans where a borrower has to repay the loan on his coming payday. Similarly, payday loans are quite costly in terms of interest. Logbook loans are secured; lenders don’t check the credit ratings of borrowers. On the other hand, payday loans are unsecured and the borrower’s credit history is checked while lending money.
Both these loan facilities offer certain benefits and have their own drawbacks. Payday loans are ideal for meeting short term financial expenses which are unavoidable and has to be met the same day. Logbook loans are suitable for major expenses requiring huge amount. However, logbook loans turn out to be a better choice for most of the circumstances in terms of interest and repayment.

Logbook Loans v Individual Voluntary Arrangements

In this article, we discuss the advantages and disadvantages of logbook loans compared to Individual Voluntary Arrangements (IVA’s). Vehicle data major HPI says that the demand for logbook loans is on the rise and estimates that about 30,000 logbook loans were issued last year alone. Alternative lenders like those offering logbook loans typically do more business during hard times for the economy because credit availability through mainstream channels dries up.
As the name suggests a logbook loan is a loan secured against your vehicle and having a logbook loan on your car means that you run the risk of losing it if you default on the repayments to the loan company.
Logbook loans owe their popularity to the fact that they are quick to access as they are issued with no credit check. To avail of a logbook loan, all one usually needs is a car of sufficient value. Oftentimes even those who are considering starting an IVA are inclined to approach a logbook lender in order to meet urgent money requirements like debt repayments without taking recourse to an IVA.
Let’s get the fact straight. For all its ease and speed of access, logbook loans are an expensive form of credit with APR’s often upwards of 250%. If you are currently considering taking a logbook loan you are likely having existing loans and credit card dues which are beyond your current means to repay. While a logbook loan may look tempting you should be sure that you can make the repayments in time and close the loan in the timeframe agreed with the lender. You should bear in mind that missing payments will lead to additional costs being added to your account and the debts quickly increasing leading to a situation where you could have your vehicle repossessed. So first and foremost borrow only the bare minimum when taking out a logbook loan.
If you are short of funds to repay your existing debts and are considering taking out a logbook loan, an IVA may be a better option. What’s more, if you have already taken out a logbook loan you can still enter into an IVA. Also, if your car has already been repossessed for defaulting on your logbook loan repayments and there is a shortfall debt on the loan this debt can be included in your IVA.
So, when is a logbook loan a good idea? It is when you are certain you can afford the instalments, absolutely sure that there are no cheaper sources of credit available to you in your current situation and you cannot do without the money you are looking for under any circumstances. And if you are struggling with mounting debts already and are looking for money just to repay them you should consider an IVA instead. For, in such situations, a logbook loan can only bring you temporary relief.
To sum up, while considering a logbook loan, be sure that your situation rules out an IVA. And be prudent in managing your finances. There are thousands who have used logbook loans to meet their urgent money needs and reconstructed their finances.

Logbook Loans Cash Converters

Cash Converters used to offer logbook loans until a few years back. However, now there are many other companies offering logbook loans on very competitive terms. When searching for logbook loans cash converters a borrower may see several other companies in the business of logbook loans. What are the things borrowers should keep in mind while evaluating the various lenders that show up for logbook loans cash converters? We discuss this in a little bit detail here.
History
In the maze of companies offering logbook loans, there are only a few with a good track record. These companies have built a strong customer franchise through excellent customer service. The leading companies in this respect are Logbook Loans Ltd, V5 Loans and Mobile Money. All of them have been in the business for several years and are still favoured by borrowers of logbook loans cash converters.
Rate of interest
As many of you are aware, logbook loans cash converters are offered without any credit check meaning it is mostly offered to people with poor credit history. Lending to those with poor credit history carries a much higher risk than otherwise. Recovery rates in logbook loans are much lower than in mainstream lending. This also entails higher legal and administrative costs for the logbook loans cash converters companies. To account for all this, logbook lenders often charge a much higher rate of interest than other lenders. However you can see that payday loans from companies like Cash Converters carry still higher rates of interest. Given that logbook loans are expensive, a lender should look at the rate of interest (represented as APR) of the various companies including logbook loans cash converters and compare them. We do not advise you to necessarily take the cheapest option rightaway. You should also look at other factors like borrowable amount, loan term, additional interest and penalty should a default happens etc. Of course, it is not your intention to default, but given your financial situation, such a possibility should not be ruled out. Thus a borrower should assess all these factors in logbook loans cash converters.
Speed of service
Oftentimes, you approach logbook lenders when you are in dire need of money. In such situations, it is important that you receive the money in the shortest possible time. While most logbook loans companies pay the money by cheque, others give you the option of receiving the money instantly through electronic fund transfer. However, they charge a fee for this facility. You should decide whether you require cheque or instant transfer. If transfer is required, you should compare the associated costs of various logbook loans cash converters.
Fine print
Some of the factors coming under fine print have been discussed in the earlier section on rate of interest. Different logbook loans cash converters follow different policies in matters regarding penal interests, prepayment penalties, recovery of shortfall in case of taking possession of the car etc. You should be fully aware of what you are getting into while signing up for a logbook loan. Take some time to read the terms and conditions. Also, feel free to ask questions if you have any.
Conclusion
We have outlined the important factors you should consider while evaluating the various logbook loans cash converters. As with any loan, it is important that you keep up with the repayments to avoid penalties and eventual loss of your car. You should consider logbook loans only in case of absolute necessity. And never borrow more than what you can manage to repay. Thousands of people have used logbook loans cash converters to meet their urgent money requirements without issues by following these simple principles.

Logbook Loans in Scotland

We get a lot of queries from customers regarding logbook loans in Scotland. Most of these concern the poor access to logbook loans in various locations in the country. While it is true that historically, the choice of logbook loans lenders in Scotland was rather limited, the situation has drastically improved especially in the last couple of years. Logbook Loans Ltd. now has a wide presence in Scotland and access to logbook loans in Scotland is no more an issue.
The procedure for obtaining a logbook loan in Scotland remains the same as in the rest of the United Kingdom. While logbook loans Scotland is the only reputed logbook lender operating here, the interest rates and terms of lending remain the same as elsewhere. This means that those looking for logbook loans in Scotland are on an even footing when compared to those in other areas. This is because the company has many loan agents and brokers operating who compete between them to offer the best possible terms to their potential customers.
However, due to the slightly different laws governing loans in Scotland, borrowers may often find the associated paperwork a little more elaborate. There may also be situations where a person whose financial conditions make them eligible for a loan in other parts is denied a logbook loan or is eligible for a lower amount in Scotland. This is because the laws governing logbook loans Scotland are slightly different from other parts of the United Kingdom, making the bill of sale a less powerful proof in Scottish courts.
We realise that this is a big issue for those in Scotland who want to take out a logbook loan. A way to get around this issue is to use the address of a partner living in England or Wales when applying for logbook loans in Scotland. This gives the person the added advantage of having a wider choice of logbook lenders than in Scotland.
For those who are looking for logbook loans in Scotland, the quick option is to contact us through this online enquiry form. We have a wide network of agents in Scotland and one of them will contact you to discuss your loan within a few minutes of our receiving your enquiry. These are the major locations where we have agents for logbook loans in Scotland:
- Aberdeen
- Dundee
- Edinburgh
- Glasgow
- Inverness
- Perth
- St. Andrews
If your city is not listed above, it doesn’t mean you are left high and dry. We will still be able to offer you a loan through our local partners in your location. The criteria for obtaining a logbook loan in Scotland remains the same as in other places. You need to own a car that is less than ten years old and is free of finance. The car’s V5 should be in your name and you should have the ability to repay your loan. We do not check your credit status. If you meet these criteria, it makes you eligible for logbook loans in Scotland.

Logbook Loans Ltd.becomes active again

Britain’s largest logbook loan brand Logbook Loans Ltd. becomes active again just days after the company that owned it went into administration. Logbookloans.co.uk is now owned by Hermes Property Services Limited. It operations are unaffected by this change of ownership and continues to offer loans secured against the value of a car or motorbike.
Consumers have the option of applying online or through the company’s network of brokers spread all over the country. The company’s logbook loans carry an APR of 478% and the minimum loan amount is £500.
History
The Department for Business Innovation and Skills estimates that nearly 40,000 logbook loans were registered between April 2008 and March 2009 in England and Wales. That roughly translates to £30m in loan amount. Logbook Loans Ltd. is estimated to have accounted for over 60% of these advances.
As far back as in October 2009 the Office of Fair Trading (OFT) had decided to revoke the licence of the parent company. Just as this process was about to conclude Nine Regions Limited and Log Book Loans Limited co-owners of the popular website logbookloans.co.uk, went into administration and its brand and loan book was bought by the Hermes Property Services Ltd. This firm was already running a small logbook loan operation.
Logbook lenders including Logbook Loans Ltd. offer loans secured against the value of a car. They rely on an old piece of legislation, The Bills of Sale Act 1878. It means that the when you take out a logbook loan, the car becomes the property of the lender. This gives them the right to seize the car in case of a default in repayment even without approaching a court.
This has been the cause of several disputes between logbook lenders and borrowers. This is natural considering that the logbook loans market comprises high risk borrowers with no access to mainstream credit. While logbook loans offer a lifeline to them in crunch situations, the likelihood of default by such borrowers is disproportionately high.
The Department of Business, Innovation and Skills had recently advised the government to impose a total ban on logbook loans. However, the government felt that such a measure would restrict retail access to credit and drive up interest costs. Needless to say, this is a situation best avoided. Instead the government is looking at options to make the lending and recovery process more transparent and fair to the consumer.
Industry changes
The logbook loan industry is introducing changes following the OFT’s action. Industry leaders are working with the Department of Business, Innovation and Skills and the OFT to draft a code of practice specific to the logbook loans industry. Individual companies in the sector will be monitored and audited for adherence to this code.
It is expected that these changes will bring in some more order to the logbook loans industry and level the playing field. In conclusion, logbook loans are here to stay and those in need of urgent money will have even more reasons to consider a logbook loan.

Car Logbook Loans: Unlock The Value In Your Car

With mainstream channels of credit becoming less and less accessible especially to those with poor credit scores, alternative lending channels such as car logbook loans are becoming increasingly popular. Though considerably more expensive than conventional forms of borrowing like secured and unsecured loans, car logbook loans have provided relief to tens of thousands of people by providing the money just when they needed it.
The main argument against logbook loans is their high rate of interest. However, it should be noted that car logbook loans companies’ clientele comprise a risky group of borrowers. Defaults are not uncommon and administrative costs are high for them. The high interest rate helps them cover these costs. When compared to other alternatives like payday loans and loan sharks, logbook loans are certainly cheaper.
Advantages of car logbook loans vis-a-vis alternatives
We should bear in mind that only those with poor or no credit history go for car logbook loans. Clearly, no credit check is carried out on the borrower when a logbook loan is processed. The advantages of car logbook loans should therefore be in comparison with the alternative channels of credit available to this group of borrowers like payday loans and loan sharks.
1. Amount borrowable
While payday loans are often small ticket loans, car logbook loans can vary in amount from £500 to £50,000 subject to the value of the vehicle. Thus these loans help you when you need a higher amount.
2. Loan term
The term of a car logbook loan can be up to 3 years, subject to the amount borrowed vis-a-vis the value of the car. The normal term is one year to eighteen months. A payday loan on the other hand is given for a very short period of time of a few weeks.
3. Ease of access
As a car of sufficient value is offered as security, car logbook loans are easily available when compared to payday loans or loan sharks who offer loans without any collateral. This means even those who are not employed but have other sources of income are also eligible for a car logbook loan.
Things to know before taking out a car logbook loan
If you are considering taking out a logbook loan, keep in mind that:
- You will have to sign a Bill of Sale that makes the lender the owner of the car offered as security. You are, however, allowed to keep the car and use it.
- In case of default, the logbook loan company has the right to repossess the car and sell it. You are legally bound to pay the shortfall in amount, if any.
- The Bill of Sale is not a valid contract in Scotland.
- The car offered as security should be in your name, less than ten years old and free of encumbrance (finance).
Major lenders
Logbook Loans Ltd, owners of the website logbookloans.co.uk was the leader in this segment. Very recently, the company went into administration and its assets have been bought over by Hermes Property Service Ltd. Hermes was an existing player in the car logbook loans market and with this acquisition have moved to the top slot. Other major lenders include Mobile Money, V5 Loans and Car Cash Point
.
If you are looking for a quick car logbook loan, please fill up the enquiry form on this page. We have tied up with major lenders to offer you logbook loans of any size. Our adviser will instantly call you and start your application process.

Logbook Loans Online

Is applying for a logbook loan online any different from going through a loan agent or broker? Yes and it is more advantageous too. It is no surprise that more than half the applications processed by logbook loan lenders start with an online enquiry. Companies have seen a quantum jump in applications for logbook loans online. It is clear this trend is here to stay and grow.
Applying for logbook loans online has several things going for it. First and foremost, it saves the borrower considerable time. He or she can make an enquiry for a logbook loan from the comfort of their home or office in as little as a couple of minutes. If this is done during the daytime, the company will call the party within a few minutes. The borrower is advised to take the car offered as security to the nearest office of the lender at a convenient time.
Another advantage of applying for logbook loans online is that the borrower has the liberty to approach different lenders with practically very little effort. This helps them find the lender that offers the terms that suit them the most. Not all logbook loans online are the same. So it is important for the borrower to find the lender that suits their requirements the best. The requirements for individual borrowers can be a combination of loan-to-value, loan term, pre-payment options, time taken for the money to be transferred etc.
Apart from online, logbook loans are also available through company branches, franchises and their network of agents. While company branches may not be easily accessible, the agents or brokers may be representing multiple lenders. In such a situation, the agent may put his own interests above that of the customer. Not that all agents do this, but this possibility is ruled out when you apply for logbook loans online.
In short, regardless of where you are located you can apply for a logbook loan online and get the money transferred to your account in the shortest possible time. Besides saving time, it makes it easier for you to compare multiple lenders and select the one that suits your requirements.
While applying for logbook loans online, make sure that you enter your contact details correctly to help the company reach you.