Our customer team hears the same handful of questions every day, usually from people trying to work out whether a logbook loan is right for them. We have gathered the most common ones here, in the order you are likely to ask them.
If your question is not covered, our main logbook loan FAQ page goes into more detail, or you can get in touch with our team.
Before you apply
What exactly is a logbook loan?
It is a loan secured against a vehicle you own. In England and Wales we use a legal document called a Bill of Sale, which gives us an interest in the vehicle until the loan is repaid. You carry on using it as normal throughout.
How much could I borrow, and for how long?
Between £1,000 and £50,000, over 18 to 60 months. The amount we can offer depends on what your vehicle is worth and what you can comfortably afford to repay.
Can I apply with a poor credit history?
Yes. We look at your vehicle's value and your affordability as well as your credit file, so bad credit does not automatically rule you out. We cannot promise to approve everyone, though.
Which vehicles do you accept?
Cars, vans and motorbikes. Our vehicles accepted page has the details.
I still owe money on my car. Can I use it?
No. The vehicle should be registered in your name, or you need to be able to show that you own it, with no outstanding finance on it.
Applying for your loan
Will getting a quote affect my credit score?
No. We use a soft search to give you a personalised quote, and that does not affect your credit score.
What checks do you carry out?
One of our underwriters reviews your bank statements and will call you to talk through your income and outgoings. This is to make sure the repayments are affordable for you. We will tell you exactly what we need when you apply.
Does someone need to visit me?
For most loans, yes. A signing agent comes to you, usually within three working hours, to witness the Bill of Sale and take a photo of you with the vehicle.
How quickly will I get the money?
Usually within 24 working hours of applying. We pay it straight into your bank account.
While you are repaying
Can I still drive my car?
Yes. You keep the keys and drive as normal. We never take your V5C logbook or spare key.
How do repayments work?
You choose weekly or monthly payments, collected by a recurring debit card payment. Your interest is fixed when you sign, so your repayments stay the same for the whole term.
Can I borrow more later on?
A top-up may be possible depending on your circumstances. You need to be up to date with your payments, and we never offer top-ups in the first six months.
Paying off your loan
Can I pay it off early?
Yes, at any time. If you settle early, you get a rebate on interest, so you pay less than you would by running the loan to the end.
What happens when I make the final payment?
Ownership of the vehicle returns to you in full and our interest in it ends.
Do you lend in Scotland?
Yes. Bills of Sale are not used in Scotland, so your loan is set up as a Hire Purchase agreement, which you sign online.
Is a logbook loan right for you?
A logbook loan is one way to borrow a larger sum quickly, but it is an expensive way to borrow and you are putting your vehicle at risk. Only borrow what you can comfortably afford, and think carefully before securing debt on your car. Our guide to questions to ask yourself before borrowing is a good place to start. If you are already finding debts hard to manage, speak to StepChange or MoneyHelper for free advice first. To see what a loan could cost, check the representative example on our logbook loan calculator. This article is general information, not financial advice.
Your car may be repossessed if you do not keep up repayments on a loan secured against it.
