Here are some of the most common questions which we get asked as people apply for logbook loans. Should you find that your query is not covered here below, do not hesitate to contact us.
After my loan approval, how soon can I get my cash or cheque?
After your loan gets approved, we take less than 24 hours to complete the whole process and have the cash or cheque ready for you. The cheque takes a few days to clear; however, a cash transfer should take only a few minutes to reflect in your account.
What qualifies me to a logbook loan?
Your place of residence must be inside England, Scotland or Wales. You must be over 18 years and be the legal owner of the vehicle for which you want to take a loan against. You must also be proven to have a steady source of income.
How do I apply for the logbook loan?
You can either fill up the online form on our website or you can decide to visit us at any of our branches.
What documents do I require to submit as I apply for the loan?
- The logbook or V5 document.
- The vehicle
- Tax compliance certificates, the insurance documents of the vehicle and an MOT certificate.
- Your identification documents
- Monthly payslips or invoices
- Recent utility bills
- Bank statements
What charges do I incur for setting up the loan?
No fees are charged for the loan set-up. Additional charges may be incurred due to late repayments. The credit agreement clearly stipulates these charges and our representative fully explains them to you before you sign the agreement. You could, however, pay less if you make your payments earlier than the set period.
Can I get a logbook loan if my vehicle is in a financial debt?
In the event that you have a debt on the vehicle for which you are taking up a loan, we must be able to establish that the previous lender consents that you take up the loan. The previous loan must also be coming to a close.
Can I get a loan even if I have a bad credit history?
Yes. You get a loan based on the value of the vehicle and not based on your credit history.
Do I have to be employed to qualify for a logbook loan?
No, you don’t have to be employed. In the case that you are self-employed, we have to establish that you have a regular source of income.
In what instance can my vehicle be repossessed?
We make efforts to ensure that you enter into an agreement with us with full knowledge of our terms and conditions and that you can afford it. Repossessing the vehicle only happens after we establish that you do not have the desire and ability to repay the loan.
Can I settle my loan earlier than the set time limit?
Yes you may. Once you clear your loan earlier you could qualify for a rebate.
What do I do in the case that I am unable to pay the instalments in time?
The most advisable thing for you to do if your repayments are in arrears, is to keep us informed. We seek to come up with amicable solutions in such cases; however, you must understand that if they fall way too much in arrears, you stand to risk losing your vehicle. Legal action could also be taken against you, which works against your credit rating. Having said that, we almost always come up with alternatives to make the process easier for you, even in such times when you find it hard to repay the instalments on time.
Are we a regulated body?
Yes we are an authorised body and regulated by Financial Conduct Authority and strictly adhere to the Code of Practice of the Consumer Credit Trade Association.
Do I get to keep my car during the loan term?
Yes. You can use your vehicle as you make the repayments.
How much do I get as a loan?
Our loans usually range from £500-£50,000. You could, however, get up to 60% of your vehicle’s value. The loan you want to take largely depends on your need.
How long are your loan terms?
Logbook loans are mainly short term loans. The loan terms majorly depends on how much you can afford to pay back. They usually range from 12-36 months. You could shorten the loan term by either making early payments or making partial payments to reduce the instalments.
What happens in the event that anything happens to my car during the loan term?
Since you are still able to use the car during the loan term you are fully responsible for any damage that may occur upon the car. We insist that you have your car insured at all times during the loan term in the event that an accident happens; the vehicle gets stolen or gets damaged.
Can I access a logbook loan against other types of vehicles?
Yes. You can access our loans against such vehicles as vans, motorbikes or even trucks.
Do you lend on old cars?
We do lend on cars 10 years old or less. However, there are exceptions if your vehicle happens to be very valuable or a classic.
How do I get to pay tax for my vehicle if you have the V5 document?
Tax reminders will be sent to you just as usual. Should you require the documents, just get in touch with us.
What is the Bill of Sale and why do I need to sign it?
A Bill of sale is a document that gives us security over your vehicle. If you are unable to make your repayments in time and if we establish that you are either unwilling or unable to repay the loan, this document gives us the mandate to recover your vehicle and sell it to repay the loan.
What happens if you resell my vehicle?
This only happens as a last resort. Monies obtained from the resale are used to settle the outstanding debt. If there is a balance, it is refunded to you. If the resale, however, leaves a deficit on your loan, you are still liable.