Where can you find Logbook Loans online?

Where can you find Logbook Loans online?
February 7, 2017 Cash Lady

Where to find logbook loans online

If you have decided to take out a logbook loan then you can shop around for the best rates and apply for logbook loans online. That is, without the need to leave your home.

Below we round up some of the most widely used online logbook loan providers and highlight the key features they offer.

Applying for  logbook loans online

When applying for logbook loans online, you are usually given the option to submit your initial application through the loan provider’s website. They will then phone you to complete the process.

What if your application is accepted and you decide to sign up for a loan? Then you are required to meet a representative from the loan provider at your home, work or a convenient location.

This gives you an opportunity to ask any extra questions and ensure you fully understand the terms of the loan agreement.

You will be required to complete the loan paperwork, including signing a Bill of Sale. A document which provides the lender with temporary ownership of your vehicle for the duration of the loan. Although it will remain in your possession so long as you keep up with the repayments.

You will also be required to provide your proof of ownership. Such as your logbook or V5 document and the representative will take a look at your vehicle.

Often the loan may be provided to you on the same day. Sometimes within as little as one hour, by cash, cheque or bank transfer.

What to look out for when applying for logbook loans online

Like applying for a loan on the high street, there are many factors you should take into consideration. Especially before selecting your preferred lender and applying for your logbook loan.

The Logbook loan provider

There are lots of online logbook loan providers, so you shouldn’t simply select the first one that you find. Or the one that claims to offer the lowest interest on its homepage.

The interest you will pay on top of the original loan amount is very important. Also, you should borrow from a reputable lender you can trust.

There are several points you can check on their website to ensure the company is ethical. As well as, customer focused and committed to industry best practice.

  • Are they FCA regulated? All companies offering logbook loans in the UK must be regulated by the Financial Conduct Authority (FCA).
  • Are they a member of the CTA? Membership of the Consumer Trade Association (CTA) is not mandatory for logbook loan providers. It requires all logbook lender members to sign up to its code of practice. This encourages fair and responsible lending.
  • Can you find online reviews that are favourable? Research your logbook loan provider online using a review website, such as Trustpilot. And take note of the reviews left by other customers who have used them to take out logbook loans.
  • How much money do they charge for extras, are there any hidden fees? Some firms charge you for extras, such as sending your late payment letters or contacting you by telephone.

The logbook loan

When shopping around for the best rate on your logbook loan, there are many points you should consider. As well as the advertised representative Annual Percentage Rate (APR).

It is calculated annually as this way it is easier for you to compare the rate between lenders. Also, it acts as a guide to help you understand the cost of borrowing a loan.  A lower APR translates to lower monthly or weekly repayments.

Note that not everybody who applies for a logbook loan will get the representative APR.  Legally, at least 51% of people who take out a loan must get this representative rate. The other 49% could be offered a different APR to the advertised representative APR on the website.

  • What is the repayment period on the logbook loan? Many lenders offer between 18 to 48 months.
  • Is there a fee for early repayment? Ideally, you do not want to pay a penalty for paying your loan back early.
  • What is the lending structure? Some loan providers have you pay back just the interest for most of the loan period. Usually until the final month, when you are expected to repay the original amount that you borrowed in full.
  • What is the maximum and minimum amount of money that you can borrow? Does this meet your requirements?
  • Can you afford the repayments? Remember that if you fall behind with repayments then you could lose your vehicle.

Online logbook loan providers

online logbook loan providers

Mobile Money

https://www.mobilemoney.co.uk

Minimum loan amount: £500

Largest loan amount: £25,000

Representative APR: 99.9%

Smallest loan term: 12 months

Maximum loan term: 4 years

FCA regulated: yes

Key features: The UK’s first logbook lender, Mobile Money has been running for over 17 years. It is a member of the CTA and has lots of positive feedback from previous customers on Trustpilot.  They claim to offer no fees or charges and to pay out on the same day as your loan is accepted.

The Car Loan Centre

http://www.thecarloancentre.co.uk

Minimum loan amount: £1000

Largest loan amount: £50,000

Representative APR: 90.79%

Smallest loan term: 12 months

Maximum loan term: 36 months

FCA regulated: yes

Key features: The Car Loan Centre offers its logbook loans through a ‘hire purchase’ credit agreement, instead of a Bill of Sale.  They claim that this way the consumer is offered more protection.

There are no credit checks on customers applying for a logbook loan. Instead, they claim to base their decision to lend on current financial circumstances and ability to repay the loan.

Varooma.com

https://www.varooma.com

Minimum loan amount: £500

Largest loan amount: £5000

Representative APR: 98.05%

Smallest loan term: 12 months

Maximum loan term: 36 months

FCA regulated: yes

Key features: Varooma has been operating since 2012. Also, it guarantees it will aim to beat any written quotation from another logbook loan lender.

It claims to offer a fast and simple service, with no hidden fees and encourages customers to repay their loans early, without charge.

Final thoughts

Finding the best logbook loan to match your personal needs, isn’t always an easy task. By exploring your options and carefully analysing each offering, you can find one that works for you.