Taking out a loan can be an intimidating process and there are always a million unanswered questions that pop into your head, stopping you from making that leap and applying. A logbook loan is a little different to a personal or unsecured loan, and there is a great deal of misinformation floating around on the internet that can give people the wrong idea about the reality of taking out a loan of this kind. So, to help those who are interested but unsure, we've compiled a list of all the top questions people ask about logbook loans. If you have a question that isn't covered here, please get in touch.
What is a car logbook loan?
A logbook loan is a short-term loan that is secured against the value of your vehicle. It can be a car, motorbike, van or another vehicle. This enables you to access cash quickly and easily, while still being able to use your car or vehicle as normal. Unlike many loans, a logbook loan doesn't require a credit check, making it more suitable for those with a bad credit score and those who struggle to get credit.
How much can I get on a logbook loan?
The amount you can borrow depends on the value of your vehicle. At Car Cash Point you can borrow anything from £500 to £50,000. When you apply one of our consultants will take your details, either online or over the phone, and provide you with a no-obligation quotation. Once we have completed the loan for you, the money will be in your account in minutes.
Are logbook loans bad?
Before applying for a loan you should be fully aware of the risks involved and confident that you are able to make all the payments. If you are unable to repay the loan, your vehicle can be repossessed. You should also check that there are no hidden fees, such as early repayment fees, that will increase the total amount you are repaying. Find a logbook loan company that you can trust. Car Cash Point is a fully accredited member of the Consumer Credit Trade Association and committed to ethical and responsible lending.
What documents do I need for a logbook loan?
A logbook loan is secured against your car, so you will need your logbook (V5C). If you have lost or damaged your logbook you can apply for a replacement from the DVLA. You will need to pay £25 and it can take up to 6 weeks to receive a replacement. If you did not receive a logbook when you got your new vehicle, you don't have to pay the £25, as long as you have the 'new keeper' slip. You will also need your MOT, tax, insurance documents and driving license and proof of your address.
Can I get a logbook loan online?
You can apply to Car Cash Point online or call us on 0333 220 4419. We will be able to give you a quick no obligation quote. We can then either organise for one of our nationwide representatives to come to your home or an alternative address of your choice to complete the loan for you, or you can visit our office. Once the loan is completed, subject to affordability, suitability and compliance with our terms and conditions, we will make a transfer directly to your bank account and you will have the money within minutes.
Can I get a logbook loan with bad credit?
A logbook loan is suitable for anyone, whether they have bad credit or an impeccable credit score. It will not affect your credit rating as the loan is secured against the vehicle. All you need is a car that you own outright, without any existing finance on it. If you already have a logbook loan on your car, you can 'Switch and Save' to Car Cash Point, saving 10%.
Can I get out of a logbook loan?
You can repay the loan early at any time. Car Cash Point does not charge fees or penalties for early repayment and the interest is Pay As You Go, so you only pay interest for the time you hold the loan. Not all logbook loan companies offer this service, so check the potential fees before applying.
What happens if you don't pay a logbook loan?
The logbook loan is secured against your car, so if you fail to make payments your car will be at risk. If your circumstances have changed and you are in financial difficulty, get in touch to discuss a way we can assist you. We can make a more suitable and realistic payment plan to get you back on track. If you are struggling financially you can get free debt advice from the Money Advice Service either online, over the phone or in person.
Can I get a logbook loan on benefits?
A logbook loan can be particularly helpful for those who are on benefits or unemployed as you do not need to have a good credit score and even a credit check to apply. However, you need to be sure that you can make the payments each week or you risk losing your car. The loan is secured against your car and it will be repossessed if you fail to make the payments. If you are already in financial difficulty and do not have a reliable income then taking out a logbook loan is not advisable.
Can you borrow money against your van with a logbook loan?
Yes, Car Cash Point can offer a loan secured against:
- Motorbikes [Storage only]
- HGV's [Storage only]
- Boats [Storage only]
- Helicopters [Storage only]
- Light Aircraft [Storage only]
Can I get a logbook loan on a classic car?
Car Cash Point Platinum offers two options for prestige and vintage car owners. You can take out a logbook loan secured against your car and continue to drive it as usual. Alternatively, you can pawn your vehicle, placing it into our safe and secure storage facility to release the equity from it until you have repaid the loan. In the storage facility, the car will receive ongoing care, including car washing, trickle chargers, wheel rotation and start-ups. This ensures it is in full working order when you are ready to drive it again.
Can I still use my car with a logbook loan?
Yes, you can use your car exactly as you normally would. You are responsible for all insurance and maintenance of the car. While the loan is secured against the car, the only difference you will notice is that you cannot sell it until the loan is repaid.
How long before they reclaim my car?
If you find yourself in financial difficulty and cannot make your weekly or monthly payments, your car will be at risk. It will not be repossessed immediately and you will receive a default notice before this happens. It is advisable to get in touch with the logbook loan lender as soon as you know your financial situation has changed or if you are having trouble making the payments.
Do Cash Converters do logbook loans?
Cash Converters do not offer logbook loans. Car Cash Point offers a best rate promise, offering to beat any competitor by 10%. Unlike many logbook loan lenders, they do not charge extra for early repayment, exit fees or administration fees.
Do logbook loans show up on HPI checks?
The HPI check will flag up any outstanding finance on a vehicle, so a logbook loan will show up if it has not been paid in full at the time of the check. However, once the loan has been repaid the car is then yours to do with as you please and an HPI check will confirm that there is no outstanding finance.
How long can a logbook take to come?
If you did not receive a logbook when you got your new vehicle, you can order one using the 'new keeper' slip, which is free. It can take up to 6 weeks to receive the logbook, but it can come within 5 working days. If you have lost or damaged your logbook you can apply for a replacement from the DVLA, which costs £25. As a logbook loan is secured against your vehicle, you will need this document before you apply.
How can I check if a car is on finance?
If you are considering buying a car it is a good idea to carry out an HPI Check to analyse the history of the car. This will check if there is any outstanding finance secured against the car. If there is and it hasn't been paid in full it could be repossessed, causing you to lose any money you paid for the car and the car itself. The HPI Check will also look into whether it is recorded as stolen, scrapped or as an insurance write off, as well as a number of other checks into the vehicle's history. While you can get some aspects of the HPI Check for free, such as an MOT check, be wary of anyone offering a full HPI check for free.
How long do I get to pay it back?
An average logbook loan agreement will be spread out over a year. Some are longer and some are shorter. Car Cash Point will tailor the payments to meet your requirements and unlike many logbook loan companies, they do not charge fees for early repayment or exit fees, so you can repay the loan early if you want to, which will reduce the amount of interest you pay in total.
What if there is finance already on the car?
If there is already finance on the car it will need to be cleared before the logbook loan can begin. Alternatively, if you have taken out a logbook loan with another company, you can switch to Car Cash Point. With our 'Switch and Save' option we guarantee to save you 10% and the transition will be hassle-free and completed within 24 hours.
How do I repay the loan?
You can repay the loan either weekly or monthly. This will be agreed during your consultation with us. Car Cash Point will accept standing order, electronic bank transfer, direct cash or cheque payment at a Barclays Bank branch or debit card payment. If you would like to make additional payments or to clear the full balance early, you can do so as there are no fees for early payments or exit fees.
How can I get a cash loan?
With a logbook loan you can receive payment within minutes of completing the loan. Apply online or call us on 0333 220 4419 to get a no-obligation quote. We will then arrange a consultation at our office or we can send a representative to you to complete the loan and transfer the money to your bank account.
Am I responsible for the insurance if I have a logbook loan?
While a logbook loan is secured against your vehicle, it does not change your responsibilities as owner of the car, so you are still responsible for all aspects of maintaining and driving the car, such as insurance, MOT and tax.
What happens if I have an accident?
If you have an accident or your car is stolen you will still have to repay the loan.
Can I sell my car if I have a logbook loan on it?
By taking out a logbook loan the loan company effectively takes ownership of the car, so you cannot sell the vehicle while you still owe money to the company. If you do sell the car illegally, the loan company can repossess the car from the new owner, who can then take legal action against you. An HPI check will show that the vehicle has finance outstanding on it and stop anyone from buying the car, so it is always advisable to carry out an HPI check before buying a car.
Will the log book loan lender sort out the MOT?
If you have a logbook loan the company technically owns the car until the final payment has been paid. However, the responsibility for car maintenance and insurance still lies with you. While you have the logbook loan you should treat the car as if it was still your own, by managing the MOT, tax and insurance requirements as normal.
Will a log book loan affect my credit rating?
Car Cash Point does not run a credit check to assess suitability for a logbook loan, so it will not affect your credit rating. However, if you default on the loan and cannot make the payments this can result in a negative effect on your credit rating. If the car has to be repossessed, the lender can take out a County Court Judgement against you which will damage your credit score.
Can I pay a logbook loan back early?
By law you are entitled to pay a loan back early, however, some companies will charge you repayment fees and early exit fees, in addition to charging you the full amount of interest, regardless of a shorter loan period. One of the reasons why Car Cash Point is ahead of the competition is because we do not charge any extra fees, such as early repayment, admin or exit fees. We also charge interest on a Pay As You Go basis, so if you can repay the loan early, you will only pay interest on the time you had the loan.
How will I get the money?
Once the loan agreement has been completed, either in our office or at your home or an address of your choice, Car Cash Point will transfer the money directly to your bank account, so you will have access to the money within minutes.
What can I use a logbook loan for?
You can use a logbook loan for just about anything. Some people choose to use them for house refurbishments, or a luxury holiday or even a wedding. They give you a little financial flexibility, allowing you to spend money on something you really want or need. For more ideas on how a logbook loan could help you, see our News page. Car Cash Point is committed to responsible lending, encouraging people to apply only if they are confident they can make the payments each week or month without suffering from financial difficulty as a result. See our lending policy for more details.
Why should I use Car Cash Point and not a competitor?
At Car Cash Point our focus is on a positive customer experience. That is why we offer a best rate promise and will beat another lender's price by 10%. We also offer a Switch and Save policy, allowing you to switch over to us, saving you 10% with a swift and hassle-free transition. While some lenders will penalise customers by charging unnecessary fees, we make a point of not charging admin fees, exit fees or repayment fees. Our interest rate is on a Pay As You Go basis, so if you choose to pay your loan in full before the agreed upon end date, we will only charge you for the duration that you had the loan.