A logbook loan is a loan secured to your car or vehicle by your V5 car logbook (hence the name.) If for whatever reason the borrower can’t pay back, the logbook loaner can gain control of the car using the V5 and sell it to pay off your debt, but, don’t worry, the lender only takes the car logbook, so you can still drive your car around as usual.
Other names that could refer to logbook loans are: loan secured on a car, loan against a car, loan car as collateral, secured personal loans, no credit check loans, car logbook loans, logbook money, and title loans. A company called logbook loans LTD created them several years ago. The idea was a guaranteed loan for people with very bad credit.
People wonder if logbook loans are legal. Most of these people are confusing us with pawnbrokers; the difference is that pawnbrokers keep the item while a logbook loaner just keeps the logbook. So with a pawnbroker, the borrower cannot use the item, whilst the loan is out.
To put it short, logbook loans are secured personal loans that use a vehicle kind of like a deposit. A logbook loan can also help as an Adverse Credit Loan, We're not in the business of offering loans to people who cannot afford the repayments as we are responsible lenders. We take account of your ability to repay the loan as well as the value of your vehicle. Therefore, we advise people to be aware that owning a valuable vehicle does not guarantee that you will obtain a loan; but don't be afraid to contact us if you are unsure whether or not you qualify for a loan, we are always happy to help and advise you.