A Look At Logbook Loans

What Are Logbook Loans?

Logbook loans or “log book loans” refer to a type of loan whereby an individual can borrow up to £50,000. This loan is secured against their vehicle. Whether the vehicle is a car, motorbike or van, you are required to supply the lender with a logbook (also known as a V5 registration document) or MOT certificate for security. As a borrower, you will need to sign a “bill of sale”. This effectively means the lender will temporarily own your vehicle. You can still use the car as normal and once the loan is complete ownership returns to you. However, should you fail to meet repayments during the term of the loan, your vehicle will be at risk. The lender can theoretically seize your vehicle without having to resort to a court order. There may be additional costs too.

A Loan Suitable For Specific People

This type of loan is popular, like any type of secured loan, with people who have a poor or mixed credit history. It allows them to obtain credit when other lenders have declined them in the past. By providing the vehicle as security, the lender has more confidence in getting their money back. It often allows for competitive interest rates as the collateral makes the loan lower-risk.

Loans tend to range from 2 to 5 years with weekly or monthly repayments, allowing borrowing of up to £50,000.


Whilst the criteria for obtaining a logbook loan differs from lender to lender, generally you need to own a vehicle valued at over £500, and have no outstanding finance on it. Lenders will typically lend up to 50% of the vehicle’s value. You will also have to provide details for the vehicle to prove you are the owner or “registered keeper”.

Apply for car logbook loans online

Traditionally, these loans were prevalent offline, and you’d go and visit a vendor to get the loan. Nowadays, it is much easier, and more practical, to carry out the entire process online. You can apply from a desktop PC, a laptop, tablet or mobile phone, with no fuss at all. Applying online also gives you much greater choice, and allows you to compare lenders to find the best deal for you.

All correspondence can be handled by text message or email so that documents do not need to be posted off or phone calls made, and checks can also be run electronically, resulting in a much quicker process that will see you get an almost instant decision. If you are eligible for a log book loan, you could even get your money the same day.

Logbook loans for vans

Most lenders will be able to offer a logbook loan for vans and also camper vans. However, you must always be aware of the pitfalls of taking out a secured loan. If your van is essential for you for your line of work, then you can ill-afford to fall behind with payments. By agreeing to a logbook loan, you agree to use your van as collateral. Thus this can be repossessed if there payment defaults.

Logbook loans for motorbikes

Similarly, the majority of lenders will be happy to accommodate someone who owns a motorbike and secure a logbook loan. Again, if this is vehicle is essential to your line of work, be careful. Check the terms and conditions of your agreement before proceeding, so that you are confident in making the full repayments on time. Failing to do so means that your motorbike is at risk and this will affect your ability to go to work and generate income.

Logbook loans for (old) cars

Even if your vehicle is not the newest, you could still be in a position to get a logbook loan for your car. Age is not the overriding factor, but more the value of the vehicle. Ideally it will be worth at least £500. Lenders tend to favour newer cars because of their increased value and sell-on potential. However, this is not set in stone. Rules change from lender to lender however, and each will have their own limit on how old a vehicle can be.