Logbook loans are short term loans that use your vehicle as security. You would hand over the vehicles logbook or vehicle registration to the lender at the ‘bill of sale’. These documents prove you are the registered keeper of the vehicle. Logbook loans are extremely popular due to the flexible nature of the loans. When applying for these loans unlike banks, you will not need to explain how the cash is being used.
You will be signing a ‘bill of sale’ which means that the lender owns your vehicle temporarily until you have paid the loan back in full. The vehicle stays with you providing you stick to the terms of the loan. The bill of sale document is recognised by the law in England, Wales and Northern Ireland. This documentation will only be accepted in the High Court providing the lender is registered with the High Court. If the lenders want to repossess your vehicle they will need the courts approval. It would be wise to check if the bill of sale is registered.
Logbook loans are loans that promise fast cash with no credit checks needed. You are able to apply for a loan via the internet or high street. You would usually be able to borrow anything between £500.00 – £50,000.00. Depending on each individuals circumstances and the value of your vehicle and depending on the lenders policy, it could be anything between 50% to 70% of the value of your vehicle.