Logbook loans – Frequently Asked Questions
We regularly receive questions by email asking us about the various aspects of logbook loans. Of course, we go out of our way to go the extra mile to answer each and every question, but to further help the public, we have devised a logbook loan FAQ.
What exactly is a logbook loan?
A logbook loan is taken out on the overall condition of your car, truck, caravan or motorbike. Depending on our valuation, we pay you up to 50% of that value in the form of a loan. During the terms of the loan, we keep the vehicle logbook.
Do you own the vehicle for the duration of the loan?
Legally, we are the owners of the vehicle during the duration of the loan. This allows us to recoup costs should you stop paying the loan and we fail to trace you. You, however, still get to use your vehicle on a daily basis
Does the car need to be paid off?
Definitely! We cannot give you a loan on any vehicle that you are still repaying for with another finance company. The vehicle must be fully paid off and in your name – not the name of a friend, sibling or spouse.
How long does it take to secure a loan and for the money to be paid?
Once we have looked at the condition of your car, loan applications take around 20 minutes (as long as you have brought all the relevant documents). Once the loan contract has been signed, we will have the money in your bank within 24 to 48 hours. This often depends on the financial institution you bank with, as some process the payments far quicker than others.
Repayments? How do they work?
Repayments can either be monthly or weekly. We are flexible in this regard and let each and every client decide which they prefer. There are a number of ways to make a repayment. You can come and pay at one of our offices, post a cheque to us or set up a debit order so the money comes from your account automatically. We would suggest the last option as it is far more difficult to skip a payment.
And if I fail with a repayment?
Well, you really should try to make every payment, especially to keep a positive credit record. That said, if you think you are going to miss a payment, please inform us and we can add that month onto the end of the loan period, meaning the terms extend by one month. You can only do this once during the loan term, however. If you miss a payment and do not inform us, we have every legal right to sell the car. We then settle the loan and if there is money left over after the sale, we will pay it into your bank account.
I work for myself. Will you still give me a loan?
Yes, we will. Instead of three months bank statements, please provide us with six months’ worth. Ultimately, however, it is your vehicle that will secure you the loan.
I have heard that spare keys can secure better loan terms. Is this true?
Yes, it is. By giving us your spare keys for your vehicle, you provide another level of collateral. This can bring down not only the interest rate for the loan, but the monthly repayments as well.
Can I pay the loan off earlier than the terms agreed?
Of course you can. In fact, we would encourage it. In this way, you can save yourself a pretty penny on interest payments alone. We also recommend that if you have any extra money, you pay it into the loan for exactly the same reasons. We will not penalise you in any way should you pay your loan off early, unlike some other financial service providers.