Logbook loans for motorcycles
A logbook loan is when you borrow money from a lender and secure it against your vehicle. This could include a car, van, or motorcycle.
While you can still use your motorcycle as normal during the duration of your loan, you’ll usually be unable to sell it until the balance of the loan has been cleared.
How do logbook loans for motorbikes work?
1. How much money you’re able to borrow will depend on the lender you apply with, as well as the value of your motorbike. Some logbook loan providers may offer a percentage of your motorbike’s value, while others may be willing to lend you the full value amount. You should never apply to borrow more money than you need or can afford to repay.
2. You’ll need to provide the logbook loan lender with details of your motorbike, and you may be asked to hand over your logbook or a spare set of keys.
3. If your application for a logbook loan is approved, you’ll need to sign a credit agreement and complete a bill of sale. A bill of sale is a legally binding document that’s required when transferring the ownership of property, such as a motorbike.
4. Your repayments, which will typically be made in monthly instalments, will include interest.
5. If you repay your logbook loan in full and on time, your motorcycle will legally become yours again, and your logbook or spare key will be handed back to you. However, if you default on a repayment, your motorbike could be sold by the lender to recoup their losses.
Are logbook loans still available?
Yes, logbook loans are still available to those who own their own vehicle, including a motorcycle.
You could apply for a logbook loan if you live in England, Wales, or Northern Ireland.
Can you get a motorbike logbook loan with bad credit?
A logbook loan could be an option to consider if you have a history of bad credit and have struggled to find a lender willing to consider your application for a loan in the past. Other options could still be available, and we’ll discuss these in more detail further down the page.
Three things to think about before searching for a logbook loan for motorcycles
1. If you default on your logbook loan repayments, the lender could repossess your motorcycle and sell it to recover the money lost.
2. A late or missed repayment will damage your credit score, which could negatively affect your chances of being considered for credit in the future.
3. You might consider searching for a logbook loan for a motorbike if you have bad credit; however, you should take the time to research any logbook loan alternatives that could be available to you before you apply. Bad credit doesn’t automatically rule out the possibility of you being considered for a short-term loan that won’t require you to secure debt against your vehicle.
Online logbook loans for motorcycles
If, after thorough research, you’re confident that a logbook loan could be suitable for you, you might wonder where to start your search.
Logbook loan providers can be found online. Before you share your personal and financial details with a lender, you should make sure that they’re authorised and regulated by the Financial Conduct Authority (FCA). You can use the FCA Firm Checker tool to view a company’s status.
Alternatives to logbook loans for motorcycles
None of the lenders on the CashLady panel offer logbook loans. We could, however, help you search for a logbook loan alternative, even if you have bad credit.
CashLady is a credit broker, and we work with over 30 UK-based direct lenders who offer short-term, personal loans from £100 to £10,000.
Several of the lenders we work with specialise in loans for people with bad credit and could be willing to consider your application.
How to search for a motorbike logbook loan alternative with CashLady
You’re welcome to search for a logbook loan alternative with CashLady if you:
- Are over the age of 18;
- Are a UK resident;
- Have a UK bank account and a valid debit card; and
- Have a regular source of income paid into your bank account.
Ready to start your logbook loan alternative search with CashLady?
If you meet the above criteria, you can begin your search.
Our online form should take no longer than five minutes to complete, and in just 60 seconds, we’ll scan our panel of lenders and let you know whether we’ve found you a suitable loan.
Searching for a loan with CashLady will not impact your credit score.
If you’re matched with a loan and choose to make a full application with the lender, they will carry out a creditworthiness assessment, which will include a hard search or an Open Banking check. A hard search will leave a footprint on your credit file for up to 12 months, and multiple hard searches in a short period of time will harm your credit score.
How soon will my money be sent?
Payout timescales vary between lenders. Some of the lenders on the CashLady panel could send your money on the same day your application is approved, though the time it takes for the funds to become available in your account will depend on your bank’s policies and procedures.
Struggling with money?
If you’ve taken out a loan that you can no longer afford to repay, you should contact your lender. It’s better to do this sooner rather than later so that your lender can work with you to put a suitable solution in place.
Free, impartial money and debt management advice can be accessed through MoneyHelper, Citizens Advice, and National Debtline.
CashLady and charity StepChange have collaborated to create this free Money Health Check quiz, which could help you identify any areas of concern and the things you can do to reduce any financial stress that you’re facing.