When you’re met with an unexpected expense and don’t have the extra cash to cover it, it’s important to be aware of all options available to you. Logbook loans are one way you could cover emergency expenses. On this page, we’ll talk about how logbook loans online differ from our short-term loans, whether it’s easy to find logbook loans in the UK, some of the pros and cons associated with logbook loans and more. And hopefully, we’ll help you decide whether this is the right credit option for you.
What Is A Logbook Loan?
Logbook loans are a type of secured loan. Secured loans require you to put up an asset of value, known as collateral, in order to secure your loan. In this case, the asset will be your car. Some lenders will require you to physically hand over your vehicle’s logbook or registration documents – this isn’t always the case, especially if you take out logbook loans online, but even without relinquishing the paperwork, you’re still handing over the ownership of your car until the logbook loan is repaid.
This is a common area of confusion with logbook loans – while you’re usually allowed to keep using your car during the repayment term, it legally belongs to the lender until you’ve paid off the logbook loan in full. Another thing to note about logbook loans in the UK is that while it’s somewhat easy to get logbook loans in England, Wales and Northern Ireland, they aren’t usually available in Scotland. This is because bills of sale, the certificate needed to transfer the ownership of the car to the lender, aren’t used in Scotland.
Usually, it’s easy to find a logbook loan if you are aged 18 or over, the legal owner of your vehicle and can afford the repayments. You may still qualify for a logbook loan in the UK even if you have outstanding finance on your vehicle – usually only if it is a small amount, and if you have the permission of your finance provider. You will need to discuss with the loan company what their own criteria is.
Can I Apply For Same Day Logbook Loans?
The amount of time that you need to wait for access to your logbook loan will vary between lenders. Some may offer same day logbook loans, while others may need time to personally review your application to ensure you meet their requirements. However, no matter which lender you choose, you must check that they are legitimate and have good intentions. If you spot lenders offering guaranteed approval on same day logbook loans, avoid them at all costs as they may not offer any form of checks, which could leave you out of pocket. Instead, look for lenders who are FCA approved and offer full transparency.
Take your time to browse lenders online and use comparison tools to find what you are looking for. If you need quick logbook loans in an emergency, there should be loans online that offer fast turn around times. If you are looking for an option that has a good deal, make the effort to review a few lenders before making a decision. If you have poor credit, use soft searching to find a lender that caters to those in difficult financial positions and checks for affordability, rather than your whole credit history.
What to Know Before Looking for Logbook Loans Online
It’s also important to note that logbook loans in the UK do not allow you to borrow the full value of your car. The percentage of your car’s value that you can borrow will vary from lender to lender, although many only allow you to borrow half of what your car is worth. Many also require you to borrow a very minimum of £500, so if your car is worth less than £1,000, it might not be easy to find logbook loans that you’re eligible for. You should always get your vehicle independently valued before applying for a logbook loan.
If you are looking to borrow a larger amount over a longer period, logbook loans might be a suitable choice. However, personal loans offer similar amounts with no risk to your collateral, so it’s a good idea to investigate all available options.
Some people believe that it’s easy to find logbook loans for bad credit, and that they’ll benefit from lower interest than with other bad credit loans. According to the Money Advice Service, the APR on logbook loans in the UK is usually higher than 400%. Considering the loan could run for up to 3 years, you would pay a lot of interest on that rate. There are no limitations on what interest rates and fees lenders of logbook loans online can charge. With a QuidMarket loan, you’re covered by the Financial Conduct Authority’s price caps and other regulations to protect borrowers – and we don’t have any hidden fees.
Repaying Logbook Loans for Bad Credit
You can still drive a car you’ve used as collateral for a logbook loan in the UK during the term of your loan. If you stick to the repayment plan as agreed, the ownership of the car will be transferred back to you after the final repayment of your logbook loans online has cleared.
However, if you fail to keep up with the repayments, the loan company may present you with a bill of sale and repossess your vehicle. The lender would need to apply through the courts before using bailiffs to seize your vehicle – they would then quickly sell it on to recover the money owed. It’s common for the car to be sold at auction for a fraction of its true resale value – and if it’s sold for less than the outstanding loan balance, you may be taken to court and made to pay the difference, known as the ‘deficiency balance’. You might even be liable to pay a repossession fee on top.
Collateral Free Loans
If you don’t like the idea of putting your car up as collateral, you’ll want to look for unsecured loans instead of logbook loans online. There are many lenders offering these, but many will turn you down if you have a less than perfect credit score. At QuidMarket, we work differently. Instead of basing our decision on your credit score, we look at whether you can sustainably afford the loan you’ve applied for. It’s simple, but it works. If you can sustainably afford the repayments and pass our straightforward checks, we’ll be happy to provide you with the cash you need, without the risk of losing your car.
Easy Logbook Loans Alternative From QuidMarket
A logbook loan is not always the best option for everyone, but we offer an easy alternative. At QuidMarket, you can find a payday advance loan alternative, with small loans from £300 to £600 for new applicants. If you loved our services and return for another loan, you may be able to borrow up to £1,500. These amounts are to be repaid over a term of 3 to 6 months, so they could be an option to consider in place of logbook loans. We also personally check each application to ensure your affordability and avoid leaving you in further financial difficulties. We are responsible lenders, so will take the time to review your monthly income, essential outgoings, and any other financial commitments you may have to check you have expendable funds to cover repayments.
- New customers can borrow between £300 and £600*
- Returning customers may be eligible to borrow up to £1,500*
- Flexible repayment terms between 3-6 months
- No collateral needed – keep your car
- QuidMarket is an FCA Authorised responsible lender
- We consider all levels of credit
- Fully transparent, no hidden fees
- Direct lender – no broker fees
- Quick and easy application online
- Decisions made by humans, not computers
- Cash sent 10 minutes after approval wherever possible
*Loan amounts and repayment terms are dependent on affordability checks
Make Informed Decisions
Sure, it’s easy to find logbook loans, but it’s important to weigh up all available options before taking out any form of credit. For more information on the loans we offer at QuidMarket, get in touch with a member of the team and we’ll be happy to chat. Once you’re ready, applying online is quick and easy.
Yes, you may be able to get a logbook loan online. Logbook loans are a type of secured loan that require you to use your car as collateral. You are still able to use and drive your car during the repayment term, however, it legally belongs to the logbook loan lender until you have paid off the borrowed amount in full. This means that if you default on the loan, your car could be repossessed, so you should only apply with logbook loan companies if you feel confident about repaying. There are a range of lenders online, so use comparison tools to find those that offer the best deals and terms to suit your needs.
Each logbook loan company is different, but you may be able to find a provider that is willing to offer loans on a financed car. For many lenders, it may depend on how much equity you have built in your car. You can work this out by subtracting your outstanding finance balance from the car’s value. However, it is important to remember that you will still need to make your car finance repayments in addition to the logbook loan repayments. This means it is essential that you check your affordability and other options before applying for this type of credit.
Each logbook lender will offer different processing times, but you may be able to find same day logbook loans. It is more common to find lenders that require time to review your application, but there may be some online that advertise same day cash. No matter which provider you choose, it is essential that you check their legitimacy and intentions. Try to avoid lenders that advertise guaranteed loans, as their lack of checks could leave you in further financial difficulties. You should also look for logbook loan companies who are transparent and do not pressure you into applying with them.