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Logbook Loans

Logbook loans are a form of credit that people often turn to when they need access to emergency finance. They can use this injection of cash to overcome their difficulties and repay the money borrowed over time. Yet how does it all work? Continue reading for all the details.

Logbook loans can be a solution when you need a cash injection

What are Logbook Loans?

A Logbook Loan is a way to borrow money against a vehicle that you own. You essentially hand over your vehicle’s logbook to your chosen loan company, who will then use it as security against repayments. Taking out a logbook loan means you will still able to use your vehicle day to day and once your loan has been repaid, your logbook will be returned to you.

Logbook loans are borrowed finances secured against your vehical

How do Logbook Loans Work?

Logbook loans work when a vehicle owner and a logbook loan provider agree to a loan amount that is equal (or less than) the value of the vehicle. The vehicle is used as a secured asset by the lender to give additional security against the loan in case there are problems repaying the money. You can begin the process either on the high street with a responsible lender, or online.

A Logbook Loan takes its name from your vehicle’s logbook. This is the registration document which proves you are the registered keeper of your vehicle.

When taking out a logbook loan, you are required to give your logbook to the lender. You will also need to sign an agreement. This is called a Bill of Sale if you live in England, Northern Ireland or Wales.

Young people are dicussing the ways you can use your logbook loan

How much you are able to borrow will largely depend on your personal needs and the value of your vehicle. The more your car is worth, the more you may be able to borrow.

Some loan companies only allow you to borrow up to half of your vehicle’s value. Therefore, it is best to do your research and check with lenders before making your application. It is also important to take into account that most reputable lenders will require your car to be valued beforehand.

The Bill of Sale will give the lender legal ownership of your vehicle. During this time you can still use your car as normal. That is until you have repaid your loan in full, upon which the Logbook is returned to you and you will once more be the legal owner of your car.

Are you eligible for a Logbook Loan?

In order for you to be eligible for a logbook loan, you must:

  • be a UK resident
  • Over the age of 18
  • be able to demonstrate that you can afford to meet repayments
  • own a vehicle which is free (or nearly free) of finance
  • your vehicle should be is taxed, MOT'd and insured
  • supply relevant documentation

learn what you should know to be eligible for a logbook loan

It is important you ensure you are able to afford your loan. Failing to meet your repayments can result in you falling into financial difficulties.

Finding a logbook loan provider

Finding a logbook loan provider is likely to be the easiest step in your process. There are a number of loan companies both online and on the high street who specialise in this type of finance.

by browsing the Internet you can easily find a list of loan providers

Some of these include:

When searching for a loan company, it is crucial that you choose a lender authorised and regulated by the Financial Conduct Authority (FCA). The FCA regulations limit your exposure to debt and ensure lenders do not offer credit to you if you are not in a position to afford to pay it back.

How is your logbook loan paid?

Your logbook loan is usually paid by electronic payment. This will ensure your borrowed amount is transferred straight into your bank account.

Some Lenders offer a quick cash service, however, this payment option may include fees of up to 4% of your loan, making it an expensive option.

How do you pay your logbook loan back?

CashLady explains how you can pay your loan back

You can usually pay your logbook loan back over the course of 78 weeks. By law, lenders must offer you the option of paying your loan back early if you can afford to do so.

With some loan agreements, you may only be paying back the interest of your logbook loan during the repayment course. That is, until the final month of your contract, where you would be expected to pay the amount originally borrowed.

Loan terms such as this demonstrate the importance of understanding how your agreement works. Make sure you are clear on what your responsibilities are before committing.

How much do logbook loans cost?

How much logbook loans cost depends on how much you borrow and the Annual Percentage Rates of the loan company you borrow from. As longbooks loans are secured you will normally find the APRs cheaper than payday loans.

The Typical Annual Percentage Rates (APRs) of logbook loans are 100% or higher. To give you an example, if you borrowed £1,000 over 18 months at an interest rate of 111.3% per annum (fixed) over 18 months (189.9% APR Representative) you would make 18 monthly payments of £116.31 paying back a total of £2,093.58.

ladies discussing the cost of logbook loans

What if you can’t pay back your logbook loan?

If you cannot afford to pay back your logbook loan, you should be aware of the rights your lender will have laid out in your loan agreement.

If you do not meet your repayments, the loan company could seize your vehicle. Most won’t go this far unless you have fallen significantly behind.

read carefully your loan aggreement if you struggle to pay back your loan

In the case of seizing your vehicle, your lender must, by law, send you a default notice first. This gives you 14 days to respond. It is worth seeking legal advice at this stage to see what options are available to you.

In the event where a Bill of Sale is registered, your lender would not need to go to court in order to repossess your car.


Ultimately when considering applying for a logbook loan, you should take into account the following:

  • Logbook loans are secured against your vehicle
  • How much you are able to borrow depends on your vehicle’s value
  • You will need to sign a Bill of Sale
  • The lender becomes the legal owner of your vehicle during the loan term
  • If you cannot make your repayments, you may lose your vehicle

As always in any situation where you are borrowing money, it is important to find a responsible lender. You should also ensure you can afford to pay back the amount that you borrow comfortably.

Late repayments can cause you serious money problems. For help or advice please go to

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Representative 49.9% APR
Representative Example
Amount borrowed: £1200 for 18 months
Number of repayments: 18
Interest rate p/a: 49.9% (variable)
Each repayment amount: £90.46
Total amount repayable: £1628.28
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CashLady is rated 4.5 stars by and Smart Money People based on 2350 merchant reviews is not a lender but is a fully regulated and authorised credit broker which introduces borrowers and lenders for the purposes of entering into short-term unsecured loan agreements. does not charge customers a fee for using its broker services, but it receives a commission from lenders or other brokers if a customer enters into a consumer credit agreement with a lender or broker following an introduction through this website. is a registered Trading Name of Digitonomy Limited, Registered in England and Wales (Company number 08385135), Registered Office; Steam Mill Business Centre, Steam Mill Street, Chester, Cheshire, CH3 5AN. Digitonomy Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference number: 690249. Licenced by the Information Commissioners Office, (registration number ZA007309) *Once approved, your cash could be sent within 10 minutes. The time that it takes for the cash to be received in your account will depend on your bank’s policies and procedures. Loans available to over-18s only, subject to status © 2020