In today’s challenging financial climate, access to flexible and fast funding can be crucial, especially when facing unexpected expenses, or managing short-term cash flow problems.
An increasingly popular option for car owners is taking out a logbook loan, a form of secured lending that enables borrowers to use their vehicle as collateral, while still being allowed to drive it as they repay the loan. If you’re considering applying for a logbook loan, it’s important to understand how the process works.
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How many people drive in the UK?
In Great Britain, an estimated 41.9 million people hold full driving licences. This represents approximately 75% of the adult population aged 17 and over. There are also more than 9.8 million provisional licence-holders
They rely on their vehicles for school, work, day-to-day life, leisure activities and more, so being without a car is unthinkable. However, when money is tight and an unexpected expense crops up, many people decide they’ll have to sell their car to make ends meet.
A survey by Motorway revealed 2.8 million Brits had resorted to the desperate measure of selling their car when they needed extra money since the current economic downturn began. This represents 11% of the car-owning public. Almost one in five owners aged between 25 and 34 were selling their vehicle as a result of not having enough money for essentials – the highest of any demographic group.
Unfortunately, 32% said they had dropped the price to make a quick sale, with 49% making a significant loss. However, canny motorists understand there are ways to keep driving your car while gaining fast cash. You don’t need to own a modern car: even if you drive an older vehicle, vintage cars logbook loans are also available.
The process is simple: the lender holds onto your logbook (the V5 document) and registers on the HPI database to confirm the vehicle is security until your logbook loan is repaid in full. The vehicle remains in your possession and you can carry on using it while you make the regular repayments, representing convenience for motorists.
Why people choose Logbook Loans 247
Here at Logbook Loans 247, we have a customer-centric approach, with the emphasis on speed of lending and great customer care. We pride ourselves on being a trusted and responsible lender, with a transparent lending process and no hidden terms.
Loan sizes are based on the value of your vehicle, with logbook loans for older cars being one of our specialities. As well as lending on modern and newer vehicles, we can also consider luxury cars, vans, motorbikes, vintage and classic cars logbook loans.
Secured loans may allow for higher borrowing limits compared with unsecured personal loans, which is particularly useful if a significant amount is needed. If you own a rare or luxury car, it may be worth more money than you anticipate.
If you have a less than perfect credit score, or you need to borrow a sum of money quickly and find traditional lenders such as high street banks have a slow lending process, a logbook loan could be what you need. One of the most attractive features is still using your vehicle during the loan period, making it a convenient financing method for families, working professionals, or anyone dependent on their own transport.
What happens if I can’t repay a logbook loan?
Whatever type of car you own, and however much you’re aiming to borrow, be assured you’re in safe hands, as we encourage responsible borrowing.
While a logbook loan offers many benefits, they also come with risks that should not be overlooked. There’s an ultimate risk of repossession of your car if you default on the loan, although this is a last resort at Logbook Loans 247. We prefer to try and work through any unforeseen financial issues with customers to reach an amicable solution and avoid repossession whenever possible.
