Although we have many different loan products, perhaps our most popular is our logbook or V5 loans. This has really become the ‘go to’ loan of choice for many people, not only because they can secure a great deal of money out of it but also because the turnaround time from application to receiving the money is roughly only twenty-four hours. People with a bad credit rating can also apply for a loan such as this.
But what exactly is a logbook loan?
What you need to know about logbook loans
If you own a vehicle, you are eligible to apply with us for a logbook loan. This vehicle can be any make or model. It can even be a motorbike, truck, lorry or caravan. As long as it has a logbook attached to it and has some form of value, we can offer you a loan against it.
The secret with a logbook loan is that the said vehicle acts as collateral for your loan. During the duration of the loan, we become the lawful owners of the vehicle (this is one of the conditions you will agree to when signing the contract). So if you miss multiple payments, we have a legal right to take the vehicle from you and sell it to retrieve all our costs. Of course, this is not something that we take lightly. We will do everything in our power to make sure you pay up, including proper education when you sign the loan to explain the necessity for making the regular monthly instalments.
So what exactly do you need to do to apply for a logbook loan?
It is simple really. Your vehicle is the most important thing in this whole deal, and there are few important aspects for you to understand regarding it and the loan. Firstly, you must own this vehicle. It cannot belong to a family member, friend, colleague, sibling or even a partner. Secondly, the vehicle must be fully paid off. There can be no outstanding finance on it. If so, you will not be able to take out a logbook loan against it. Thirdly, you must have comprehensive insurance on the vehicle. This ensures that during the duration of the loan, our investment is protected from theft, accidents and even weather damage. And lastly, your vehicle must be no older than ten years. We do consider older luxury vehicles or sports cars that have immense value.
To begin the loan application process, you must either bring your vehicle to us or one of our assessors will come out to you to inspect it. We look at a number of different aspects about the vehicle including the how good a condition it is in, how far it has travelled in its lifetime as well as if it has a valid MOT certificate. Any vehicle that does not have a valid certificate does not qualify for a loan at that point, but you can easily apply for one again.
Once we have seen your vehicle, we require a number of different documents from you to complete the loan application. This includes a number of personal documents such as your driver’s licence, your identity document as well as wage slips from your employer, three months’ worth of bank statements and finally don’t forget all insurance and tax details regarding the vehicle.
Once we have all the relevant documents, we can see how much of a loan you qualify for. In terms of the value of your car, we will never give you a loan above 50% of that value. Remember, your monthly income also plays a big role. Your car might mean you are eligible for 50 000 pounds but that might not be viable as your monthly income is not sufficient enough to pay back the instalment associated with that amount.
We will offer you a competitive loan amount that is affordable. Should you agree to the loan, you will sign our contract (after reading all of it of course) and then we will arrange to have the money in your banking account in the next twenty-four hours.
If you need to know any more information about this great loan product then click here.