Logbook loans are expensive and put your vehicle at risk, so should be a last resort. You could consider a logbook loan if:

  • You have no other way to borrow the cash you need

  • You have bad credit

  • You really have to borrow the money

You also need to be the registered owner of your vehicle and named on the V5C registration documents to apply for a logbook loan.

Getting the cheapest loan

If you have decided to apply for a logbook loan, you need to work out:

  • How much you need to borrow: Logbook lenders currently offer loans between 250 and 150,000.

  • How long you need to pay back the loan: You can usually choose a loan term between six months and five years long.

  • How much your vehicle is worth: Most lenders will only let you borrow up to 50% of the value of your vehicle.

Once you know this information, use this comparison to find a loan online that meets all your needs and compare the cost to get the lowest interest rate.

All logbook loans are expensive and most have APRs well over 100% but you could save hundreds of pounds by shopping around for the lowest rate.

What happens next?

Once you have chosen the best loan you can find, the value of your car will be checked by the lender before they send you the funds.

You will then need to send the lender your V5C registration documents for them to hold for as long as the loan is secured against your car.

Logbook loan FAQs

Q

How long does it take to apply for a logbook loan?

A

You can usually apply online and find out if your application has been approved within 24 hours.

Q

How much could I borrow?

A

Most lenders offer loans up to 50% of the value of your vehicle.

Q

Do I have to pass a credit check?

A

It depends on the lender you choose. Some do not run a credit check, but you will still need to show you can afford the loan.

Q

What is a bill of sale?

A

It is a legal document that transfers the ownership of your vehicle to the logbook lender, so they do not need a court order to take it away.

Q

Can I get a logbook loan if I live in Scotland?

A

Yes, but because a bill of sale is not valid in Scotland you will have to sign an agreement called a hire purchase and your choice may be limited.

Q

Can you get a logbook loan on a car that is on finance?

A

It is unlikely, unless the finance agreement has almost ended, because there is already a claim on your vehicle.

About our logbook loans comparison

Q

Who do we include in this comparison?

A

We include logbook loans from our panel of lenders. They are all regulated by the Financial Conduct Authority, satisfy our screening standards and do not pass your details to other lenders or brokers without your permission. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.