All the inside information you ever needed about our logbook loan products
Over the past two years, we have had many people contact us to ask specifically about our logbook loan products. As a rule of thumb, not many people in the United Kingdom actually know what a logbook loan is, let alone exactly how it works.
Below you will find our standard logbook loan fact sheet that we send to individuals enquiring about these loan types which we have now made available online to help further inform people browsing our site. Remember, if you have any further queries, please do not hesitate to contact one of our staff to help you.
So who exactly can apply for a logbook loan product?
Our logbook loans (as with all of our loan products) have a few simple requirements. Firstly, all applicants need to be 18 years of age or older. Secondly, they need to be citizens of the United Kingdom. Thirdly, they need to own a vehicle to act as collateral for the loan – this can be a car, motorbike, motor home, truck or caravan, as long as it is not older than ten years. Lastly, all applicants must be earning a monthly income, which they can prove.
How much can a logbook loan be worth?
Logbook loans vary in value. At Machar Loans, our offerings are between £250 to £100,000 but it all comes down to the overall value of your vehicle, something our assessors will determine when they inspect it for the first time. There are many factors at play which determine this, most notably the condition of the bodywork and engine as well as the amount of mileage the vehicle has covered in its lifetime. There is another major factor however, your income. Although your vehicle might be worth a whole lot of money due to its value, your income plays a determining role as towards the final amount. Why? Well, we need to know that you can pay back the loan effectively each month. The last thing we want to do is repossess your vehicle because you keep missing payments.
Do you only accept cars for a logbook loan?
No, we accept caravans, motorbikes and even trucks. If it has wheels and has value, you can use it towards a logbook loan. You will just need to provide the V5 document as well as the latest MOT roadworthy certificate for your vehicle of choice.
We will consider a vintage car or a sports car that is older than 10 years as these will still have still significant value, despite their age and therefore can act as security for a loan.
No matter what vehicle you bring us, it will remain in your possession and you are able to use it on a daily basis if you so wish. We technically remain the owners of the vehicle during the length of the loan, however.
I have heard about something called a bill of sale? What exactly is this?
The bill of sale is a fairly important document that you will need to sign on accepting our loan terms. Basically, you are signing the vehicle over to us for the period of the loan. As soon as you sign it, we are the legal owners of the vehicle although as stated above, you can keep it and use it on a daily basis. The bill of sale is a necessary document as it protects us in the event of someone missing multiple loan repayments. If this happens, by law we have the right to repossess a vehicle and sell it to make up any of our outstanding costs.
How long do I have to pay back the loan?
Loans can be paid back over a variety of timeframes. This is usually determined by the loan amount we give you as well as your income. It will vary from customer to customer but can be anything from 12 to 48 months.
What is the turnaround time for a loan application? I need money urgently!
If you bring the correct documents and we have assessed your vehicle, a logbook loan application takes around 20 minutes to approve. Once we have approved your loan, you can read through the contract and sign it. Generally, within twenty-four hours the loan amount will be paid into your account. This however, is dependent on your bank releasing the funds into your account. Some financial institutions do take longer than others in this regard.
Can I pay off more than the instalment amount each month?
You most certainly can. Not only will this help improve your credit rating quite drastically but you will also save loads of money on the loan interest if you pay it off earlier. Even if you get some excess cash from somewhere, it is prudent to pay it into your loan than waste it elsewhere.