Car Logbook Loans Explained

Car logbook loans refer to a loan scheme by which you can borrow money by keeping your logbook in hands of lenders. Logbook refers to a vehicle registration certificate issued by Driving and Vehicle Licensing Agency (DVLA) in the UK. A logbook is valid till 5 years and contains entries regarding owner of the vehicle, registered keeper of logbook, chassis number, current registration mark, engine number, model and colour of the car. If you think that once you have kept your logbook as collateral you won’t be able to drive your vehicle than you are completely wrong. No such restriction is there and you can freely drive your vehicle to any place.
Credit score is considered to be an important element by lenders in UK while lending money to the borrowers. The best thing about car logbook loans is that it does not involve credit check. So, whatever may be your credit rating you need not worry, you are eligible for a logbook loan if you meet the above criteria. Problem cases such as people who have faced CCJs, bankruptcy can also apply for this loan.
Logbook loans can be borrowed from banks or financial institutions. But, if you are looking to get a fast and best logbook loan, you can apply for it from online lenders. Online loans offer the convenience of applying for the loan and saves time and money. A borrower can access infinite number of online lenders by using the internet from home or office. You can drive with the pleasure without any restriction and obligations by the lender.

Car Logbook Loans

The car logbook loans are loans that are attained against the car logbook of the borrower. The logbook is a manuscript that includes the car details, the registration point, car’s VIN number, the details about the owner and the frame number. The Driver and Vehicle Licensing Agency offers the logbook document to the car owner. These are secured type of loans where the borrowers can keep the security with themselves. Therefore, there is no risk associated with the car logbook loans.
Your own car becomes a vehicle of taking log book loans. The loan is offered by the lenders on the basis of the logbook of your car. Logbook is a document containing detail of car current registration mark, VIN number, chassis number and information about registered keeper of the logbook. Logbook document is issued by Driver and Vehicle Licensing Agency.
These loans demand logbook as security and hence it is easier to get money. Collateral for logbook loans is the logbook of your car. These loans are available for amounts ranging from £500- £50,000. Borrowers who want to have a logbook loan need to fulfill certain basic criteria.The vehicle must not be more than 8 years old. The vehicle must be clear of any finance that is remaining unpaid, or where the vehicle ownership has already been pawned for other loans. Taxes and insurance due on the vehicle must be paid in full before the vehicle logbook is pledged for logbook loan.

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.