Logbook loans

A logbook loan is a secured kind of loan that uses the bill of sale agreement. Here the lender places your vehicle as security against the loan you take with your consent of course. This means that if you fail to repay the outstanding balance, then the lender will be within the law to repose your car and sell it in order to clear the loan. After all, you leave him/her your V5 document and they automatically become the legal owners for the entire loan period. Some logbook loans could range up to £50,000 or more. However, it is important to note that the amount you will receive is highly dependant on the valuation of your car. Nonetheless, you do not have to borrow the maximum amount as you can also opt for the minimum with no repercussions whatsoever.


  • A logbook loan is good when you need to raise cash quickly as it involves a fast and an easy process. All you need is to verify documents including the V5, fill the application flawlessly and you will have money in your account within 24 working hours.
  • You still get to keep your car and use it for business as usual even though you use it as security against the loan. What the lender wants from you is the V5 document which will be returned once you clear the loan.
  • Your car does not have to be new. As long as it is in good working condition you will definitely qualify for the loan. However, the newer it is, the higher the amount.
  • Logbook loans have few or no restrictions when it comes to the amount you want to borrow. You can borrow up to the maximum or a lesser amount that can go up to the minimum amount. The amount you borrow should be according to the size of your wallet. Therefore, do not forget to only borrow what you can comfortably afford to pay back.
  • You do not need to have a good credit history to qualify for a logbook loan. This is because, being a secured loan risk is reduced and lenders can comfortably give you money knowing that they have something to fall back on if you can’t keep up with payments.




Taking out a logbook loan only has repercussions if you fail to make payments on time or default completely.

  • You risk losing your car. Since a logbook loan is a secured loan and your car is what you use as security, the lender has the right to take from you and still be within the constraints of the law. After all, once you sign the loan agreement and give the lender your logbook, you have transferred ownership and the car will only be returned once you clear the loan.
  • Like any other loan, you will face high fines and interest rates if you fail to pay on time. So, ensure you pay on time to avoid repaying more than you should. You could do with that extra money.
  • What’s worse you risk destroying your credit score even more since your paying progress will reflect on your history for other lenders to see. Therefore, ensure you are prompt when it comes to clearing your monthly payments so that you improve your credit score instead.