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If you do not keep up repayments your vehicle may be repossessed and sold by the lender without the need for a court order.
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Here is some important information about the practices used by many of the logbook lenders we list on money.co.uk. To find out about the specific practices and charges applied by your chosen logbook loan lender you will need to check their website and read their terms and conditions carefully before you apply.
You should always make repayments on your logbook loan on time and in full. The interest rates and information we list in our comparison tables assume that you will do this. Logbook loan lenders each have their own policies regarding non-payment, this affects the additional interest and charges they apply and the debt collection practices they use.
All logbook loans are secured against your vehicle, if you do not make your agreed repayments on time the lender may be entitled to take possession of your vehicle and sell it; they do not need a court order to do this. If the vehicle is sold for an amount which is insufficient to pay off the outstanding money you owe you may be responsible for paying any shortfall and could be charged additional fees to cover the cost of repossession. The repossession and sale of the vehicle will not always put an end to the loan agreement and you could end up owing more than the original debt in addition to the loss of your vehicle.
How much extra you are charged and the collection practices used for non-payment will depend on the logbook loan lender you have borrowed from; you should check this before applying. Your logbook loan payments may be taken out of your account automatically. However, if you do not have enough money in your account to cover the payment you are likely to incur extra charges.
If you think you may have difficulty making a repayment you should contact your lender immediately. Failure to do so could impact your credit score and result in additional charges.
Non-payment will also be recorded on your credit file. Repeated non-payment may have a negative impact on your credit rating and affect your eligibility for future borrowing. You should always make repayments on time and in full to avoid any repercussions on your credit rating.
If you fail to make an agreed repayment on a logbook loan most lenders will contact you by phone, post or email to rearrange your repayment. If you repeatedly fail to make repayments then they may use collection practices or take legal action. You should familiarise yourself with the collection practices of your chosen logbook lender before you apply.
If you are struggling to make repayments on a logbook loan you should contact your lender right away. You can also get free advice from debt charities like StepChange, Citizens Advice Bureau and the National Debtline.
Using your car to secure a loan may be a way of borrowing money if you suffer from a poor credit history or are on a low income and really need to access funds.
However, log book loans can prove to be a very expensive way to borrow so if you decide to take one out you need to shop around to find the cheapest option possible.
Here's what you need to do to find the best car logbook loans UK providers have to offer.
Before looking for the best logbook loan, you should check that you can't borrow money from another source.
Not only are log book loans an expensive way to borrow money they will also put your vehicle at risk as the loan will be secured against your car. This means that if you don't keep up your repayments the lender is entitled to take your car instead. So if you can borrow money from another source it may be a better option.
Even if you are looking for logbook loans because you suffer from bad credit there may be other options that are more affordable.
Read our guide: How to Borrow Money With Bad Credit for a rundown of the different options that are available to you.
Logbook loans are based on the trade in value of your vehicle so before you start getting quotes you will need to assess your vehicle's value.
Most logbook loan providers will lend up to 50% (some will lend more) of the value of your vehicle (as assessed by the logbook loan company), providing you own it outright and don't have an existing finance agreement secured against it.
Essentially this means that the amount you might be able to borrow is restricted to up to half the value of your car.
There are also likely to be strict criteria to the type of vehicle logbook loan providers will accept, with most putting an age limit and other restrictions on the type of vehicle that will be considered. So before you apply for the loan be sure that your car is in an acceptable condition so you don't waste your time on something that isn't available to you.
If you're looking into logbook loans, fast decisions on how much you can borrow will get you the cash you need sooner. Although quick logbook loans that transfer the money to your account swiftly are available, an instant loan against car ownership is rare to come across. This is because immediate guaranteed logbook loans would require the lenders to make a decision without first being able to value your car.
There are now some lenders that do value your vehicle electronically, making it possible to offer same day logbook loans.
However, if you're looking in a hurry for logbook loans and need instant cash you'll have less choice and could end up paying more.
The main factor that will determine the cost of your logbook loan is the interest you will have to pay on it.
Every log book loan company must display a representative APR, this is an illustration of the interest you might have to pay on a logbook loan should you apply and is a good way to compare the relative costs of each loan.
You can compare logbook loans and their interest charges side by side using our car logbook loans UK comparison table, which includes the top 10 logbook loans available in the UK.
Use this table to narrow your options down to the top 3 logbook loans that meet your needs, look at which gives you the cheapest access to the money you need and then, if you have no other cheaper option available to you, consider applying for the best loan for your finances.
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