Log book loans are easier, faster, and cheaper to obtain than other loans, and for these reasons they are increasing inpopularity. Borrowers avoid the drawn-out process of valuing the said collateral - which is common with other types of loan. With a V5 logbook loan, everything is so much simpler as the loan is secured on your car.
V5 logbook loans are best used to satisfy immediate needs. The log book is used as a collateral so the issuer owns the rights to your vehicle. The v5 tells all the important information regarding the vehicle i.e chassis number, owner details, engine number and so on.
If you have taken a log book loan then you continue to use the vehicle at your leisure, although the lender effectively owns the car as they have the logbook.
Of course, they are always requirment you must have before taking a logbook loan. These include having a stable income, tax and mot on car and other credentials necessary to ensure that the borrower can repay the loan or that the car has potential disvalue.
If the loan is not repayed on time then the provider has rights to reposess the vehicle.