Logbook Loans – Online V5 Lending

With logbook loans, customers can release up to £50,000 secured against their vehicle. So whilst you may have been turned down for other types of loans and finance, many new borrowers are able to release money from the car, bike or van that is sitting in their drive way.

The idea of a logbook loan is that you are temporarily switch over your ‘logbook’ to the lender like Car Cash Point during the duration of the loan. The logbook is also known as a V5 registration document and confirms that you are the registered keeper of the vehicle.

Logbook loans allow you to receive a large cash sum upfront from the lender such as Car Cash Point and during this time, they are ‘holding’ your vehicle as security. Despite this, the main benefit is that you are still able to keep using your vehicle as per usual. In the event that you cannot keep up with repayments and all options have been exhausted, the new lender like Car Cash Point could repossess your vehicle in order to claim back their money.

By applying through UnsecuredLoans4u, customers can borrow from £500 to £50,000 repaid over 1 to 3 years, with the option to repay early at any time. To get started, simply click on apply now and you will be taken to our new online application form where you can enter your information and get a free quote in minutes.

• What are the benefits of V5 loans?
• Is a bad credit rating accepted?
• What information do lenders need?
• Do older cars qualify?
• What vehicles are eligible?
• How do the repayments work?
• Do the lenders own my car?
• More tips and advice
• What if my car is on finance?
• How do I apply?

Benefits of a V5 Logbook Loan

Can I Apply for a Logbook Loan with Bad Credit?

Yes, logbook loans are commonly used for borrowers with bad credit ratings. The difference with this type of loan compared to an unsecured loan, is that you have something value (your vehicle) which is worth something to switch for. Since you are using this as collateral or insurance, it is how the lender such as Car Cash Point determines your eligibility and how much you can borrow.

For this reason, there are companies like Car Cash Point that offer logbook loans with no credit checks, instead taking into the account the value of your vehicle and its age. Usually, the more expensive and more modern the vehicle, the more borrowing or the more you can switch it with cash.

What Information Do We Need to Give Us a Loan?

When applying for a logbook loan in the UK, the lender like Car Cash Point just needs to confirm three things:

• Your identity
• Proof that you own the vehicle
• Your affordability

To provide this information, you can start by completing the online application with UnsecuredLoans4u. In particular, logbook lenders like Car Cash Point want to see that you have a regular employment and monthly income so that you can afford the borrowing, to make the monthly repayments and switch it with cash. You need to be over 18 years of age, a full-time UK resident and the registered keeper or owner of the vehicle. Your car is used as security or insurance and therefore it falls under a loan without a guarantor.

You will need to provide copies of the following information:

• Valid MOT certificate
• Proof of address (recent utility bill or bank statement)
• V5 registration document (also known as your logbook)

Can I Apply for a Loan with Older Cars?

Yes, logbook loans for older cars are eligible for finance, depending on the on-the-road value and current condition. For instance, some classic cars that are more than 25 years old may be more valuable than cars that are only a few years old.

The advantage of applying through UnsecuredLoans4u is that we work with some of the best logbook lenders such as Car Cash Point in the UK, so whilst some lenders may not accept older cars or switch it, we have a sufficient number of providers on our panel who may be able to proceed with your application.

Our application is completely online and there are no upfront fees for applying. You can apply 24 hours a day, 7 days a week and receive an instant decision to switch it on screen. If successful, you will be able to proceed with the best logbook lender like Car Cash Point based on your requirements and typically receive funds within 48 hours.

What Vehicles Can Be Used for a Logbook Loan?

Any vehicle can be used to apply for a logbook loan whether it is a can, motorbike, van, motorhome or tractor. However, most of the loans that are approved are with vehicles that are less than 10 years old and are owned outright by the borrower can switch it with cash.

How Do Repayments Work for a Loan – Logbook? Pay Early

The average loan in a logbook loan has a duration of 1 to 3 years and it is repaid in monthly instalments, confirmed to you in writing before your debt is funded. Since you are using your vehicle as security, this reduces the risk for the lender like Car Cash Point, which is why the average logbook loan costs around 80% to 90%, making it much cheaper than payday loans.

You always have the option to pay your loan early and by doing so, you will save money since you will be accruing less interest overall.

Once you have paid off your debt in full, the transfer of your logbook will be sent back to you and you will continue to own and use the vehicle as you wish.

Your collateral is at risk, so if you cannot keep up with repayments, the lender like Car Cash Point is able to repossess your vehicle. Importantly, they do need require a court order and can seize the vehicle upon short notice.

Does The Logbook Company Own The Vehicle?

There is some degree of risk when you take out a loan against your own car. You may end up losing it once you fail to settle your debt, end of the deal. So, yes, that is definitely one way to look at it as the logbook for the vehicle is nine times out of ten held at the main office securely until the agreement is settled in full. So, until that is done and it is returned, the vehicle is theirs. On the other hand, there are set limits to car management when the logbook company like Car Cash Point has the car in their possession. For one, obviously, they can’t sell or even drive it. You still have control of the car so you can still use it once payment is settled in full.

Logbook Lending Borrow Money Tips & Get Cash Advice

As with any loan, it’s always a good idea to shop around first before sealing the deal with a lender such as Car Cash Point. Check out and try using comparison sites before settling on a lending offer. You’ll find that different companies have varied terms, rates, and policies especially during coronavirus outbreak that will help you decide whether one is a better fit than the others. Now, just because one lender won’t loan you the money, it doesn’t mean the others would decide similarly. You would find then that the more options you consider, the greater your chances are to be approved and get your cash. Moreover, some lenders such as Car Cash Point will offer you better rates than others.

Compare!

Always compare different types of financing before zeroing in on one option such as a logbook loan. You might find that a guarantor or a remortgage is a better option for you. Evaluate whether a logbook loan is something that you need or you could successful carry out to completion or perhaps other options could be less riskier or more suited to your budget and needs. Other options might include asking for an advance from your employer, or even asking for a cash or loan from parents. You can also try getting a credit card with 0% APR as a sign-up bonus.

Tell Me The Basics I Need

Cars are practical buys and good investments as this can also serve as a collateral for borrowers. In order to get a loan against a car, you must first be the owner of the vehicle because If you are not, please stop here as this product will not suit you. A personal or guarantor type product will be of more use to you. Routine credibility checks will be made to validate ownership. We and the lenders like Car Cash Point will ask for some very basic details about the car in question like registration, make, and model; and other similar information including coronavirus condition in the area which are normally enough to let them know who owns the car and what finance is left on it. The application will then go through the normal steps making sure that the monthly instalments are affordable for you. If everything is okay, they will proceed and pay the money out in a fast and timely manner.

Understand Value

Be in the loop and know the actual resale value of your car in the current market. Another tip is to think about the type of vehicle you own before you go ahead. You’ll avoid being shortchanged this way. Most likely, the loan will be tied to the resale value of your car or bike rather than the amount you paid or its actual tag price. This means you can’t assume that a very expensive car will necessarily help you to get a very good loan. You have to think of its current market value when assessing repayments and not how much you actually paid for it.

My Car Is On Finance, I Need Cash, Is That An Issue?

Unfortunately, this is more than likely to cause issues if you still owe money for your car. With such scenario, It’s highly unlikely that the lender like Car Cash Point will approve of it and allow to lend money on that vehicle. The reason for this is in the event that you fail to make your monthly instalments, the finance company such as Car Cash Point has the right to repossess the car and sell it to recover their expenses. So, in order to avoid such inconvenience, please make sure you can afford to keep the monthly instalments up when you apply, if not then be prepared to lose the item you use for collateral.

There are some circumstances wherein the company like Point may decide to lend on a particular item currently on finance. Under normal coronavirus conditions, this could still be considered especially if you are due to make your final payment on your current finance as this is often seen as low risk.

How Do I Apply For A Loan?

Look at your different options and consider the strengths and weaknesses of each before settling on any type of loan. Yes, know how to shop around for financing options and be able to weigh which one complements your budget type and has more flexibility in payment terms. It is wise to consider different companies and make sure not to just think about how much they’re willing to lend or the rates but most importantly, check on their flexibility. It may be that you do better to pay slightly more over a longer period of time versus paying less but paying in a big lump sum. While trying to compare and contrast financing offers like in Car Cash Point consider your cash flow and think about whether you’d be able to recoup some of the lost interest by putting the money into savings while you make your repayments.