A logbook loan is secured on a vehicle you own, so the vehicle matters as much as the application form. People often ask whether their van counts, whether their car is too old or whether a motorbike can be used at all. The answers are simpler than you might think.
This guide runs through the vehicles Logbook Money lends against and the checklist each one needs to pass.
The types of vehicle we accept
We lend against three kinds of vehicle:
- Cars. Cars under 15 years old are more likely to be accepted, though it depends on the make and model.
- Vans. We lend against vans as well as cars, subject to the same vehicle checks.
- Motorbikes. A motorbike can be used as security too, again subject to the same checks.
You can see the full list on our vehicles we accept page. If you are unsure whether your vehicle is suitable, enter your registration in the quote form and we will tell you.
Your vehicle checklist
Whatever you drive or ride, it needs to tick four boxes:
- It belongs to you. It should be registered in your name, or you need to be able to show that you own it.
- It is completely free of outstanding finance. If you are still paying off a hire purchase or PCP agreement, the finance company owns the vehicle until the agreement ends, so it cannot be used as security.
- It is in good mechanical and cosmetic order.
- It has valid tax, MOT and insurance.
Before you apply, it is worth a quick look at your own records. GOV.UK lets you check your MOT history and check whether your vehicle is taxed for free. Make sure the name and address on your V5C are up to date as well, because you can be fined if the DVLA's records are wrong.
Our eligibility page covers what we look for in you as well as your vehicle.
How age and value affect what you can borrow
Loans range from £1,000 to £50,000, and you can borrow up to 80% of your vehicle's value. The value sets the upper limit, so a newer or more sought-after vehicle can support a bigger loan than an older one.
Value is only half the story, though. We also check that the repayments are affordable for you, by looking at your bank statements and talking through your circumstances. That means the amount we offer could be lower than your vehicle would allow. Our guide to loan to value explains how the maximum is worked out.
What about the V5C logbook?
Despite the name, we never take your V5C logbook, and we do not need your spare key. You keep both, and you keep driving as normal. The security for the loan is a Bill of Sale, which transfers ownership to us until the loan is repaid. When you make the final payment, ownership returns to you. If you want to know more about the document itself, read our article on why your V5C matters.
Will someone need to see the vehicle?
For most loans, a signing agent visits, usually within 3 working hours of approval. They witness you signing the Bill of Sale and take a photo of you with the vehicle for identity purposes. In Scotland, and for some other UK loans, the loan is a Hire Purchase agreement that you sign online, and you send us photos and documents instead of having a visit.
Once everything is signed, the money is usually paid by bank transfer within 24 working hours of applying.
Before you use your vehicle as security
A logbook loan is an expensive way to borrow, and if you cannot keep up the repayments, you could lose a vehicle you may rely on for work, school runs or getting to appointments. Think about what you would do without it, and look at other options first. This article is general information, not financial advice. Free, independent debt advice is available from MoneyHelper and StepChange if you are already finding things difficult.
Your car may be repossessed if you do not keep up repayments on a loan secured against it.
