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Car logbook Loan, What type of loan is this?

October 5, 2009

Car logbook Loan, What type of loan is this?

Before we talk about what is a car logbook loan, it is best to be acquainted with what a logbook is, a logbook is the registration form of V5, It includes a variety of details like present registration marks, VIN number, engine number, car model and the information about the registered holder of the logbook. The validity period of a logbook is around 5 years. In logbook loans, loans are given against the logbook of borrowers’ vehicle. Usually the loan company keep the logbook until the amount is totally paid off.

If you own a vehicle, it is now possible to get a loan with your car or guarantee of safety, where the logbook as a guarantee.

How does a car logbook loan work?

The car logbook acts as a proof of ownership of the car and the loan is secured against the property of the car. The logbook loans can be a quick and easy way to obtain a loan. They are suitable for borrowers requiring immediate funds quickly.

What most car logbook loan companies look for?

•    Repayments are weekly by pay-in book supplied by us and you continue to drive the vehicle.
•    They normally do not carry out personal credit checks as the vehicle is our security and we retain your V5 document (log book).
•    The log book loan can be settled at any time
•    After an appraisal of your vehicle, the log book loan will be confirmed and documents produced for signing.
•    Upon completion, you will receive a pay in book and loan cheque.
•    Once car logbook loan paid off, you will receive your logbook back.

To re-cap what a car logbook loan is: It is a loan which is secured against the value of your vehicle using your log book. This could be a car, van, motorbike or caravan or anything which has a logbook or V5C document, although cars are usually the fastest and most common. You can continue to use your car or other vehicle while you make your repayments for your loan( your V5C document is held by the lender as security). This makes the process quite simple and doesn’t usually involve a credit check.

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