An Alternative to Logbook Loans

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If you are in need of cash and considering using your car to secure a logbook loan, have a pause for thought: Borro offers lower interest rates and quicker car loans than logbook lenders.

Logbook loans

The way it works is simple: instead of trading in your logbook for a loan, we actually take access of your car instead (you must have full ownership). Although this may sound slightly more drastic at first, our customers have found that when they need cash fast, the last thing they want to worry about is paying for their vehicle's upkeep and running costs, coupled with crippling interest rates. Logbook loans are traditionally agreed over long loan periods. Meanwhile, our loans are based on the short term at far reduced rates:

Borro

  •   loan up to £2,000,000
  •   39.2-68.8% APR
  •   cars of any age
  •   average 6 month term

Logbook Loans

  •   loan up to £50,000
  •   300%+ APR (e.g. 464.4% Mobile Money)
  •   8 years or less
  •   average 2 year term

To find out more about our secured loans, as well as information on how we store vehicles please have a browse through Borro's website. If you'd like to arrange a loan or assess the value of your vehicle (we offer a free valuation service), you can speak to an experienced member of our team today - just call 0808 163 3823 .

FAQs

While we are confident Borro offers the choice alternative to logbook loans, we know our customers like to know a bit more before they make such an important financial decision. To this end, we have included a section of our most frequently asked questions below for your perusal

What are Logbook Loans?

Logbook loans are a clever way of unlocking extra cash. The concept is pretty straight-forward; a car is used as collateral against the loan amount. However, instead of trading your car in completely, you actually keep it in exchange for your logbook and MOT certificate, which is then held by the lender. This sounds too good to be true and frequently is - to the tune of 300% APR and above. Yes, you can keep your car, but at the same time you are paying through the nose to do so when you are already in need of cash. In addition these loans come with an average 2-year term so you are often paying interest for considerably longer than you need to. The good news is that there are alternatives - just check out our answer to ‘Are Logbook Loans Legal - what are the Alternatives?' droplink to find out more.

Can You Get Logbook Loans for Old Cars?

The majority of logbook lenders require a car to be less than 10 years old. Here at Borro, we not only offer loans against cars of any age, but also of values up to £2 million pounds. This provides a great way to manage your finances, by putting a car you can temporarily survive without into the hands of a loan company for a short term period. We have a specialist team who have been hand-picked from auction-houses such as Bonham's and Sotheby's, and as such have experience with classic and vintage cars. We also offer a free valuation service.

Are Logbook Loans Legal - what are the Alternatives?

Yes, logbook loans certainly are legal and there are a number of providers available in the UK. However, you should know that there are alternatives. First of all, we should point out that you don't need to use your car to gain access to quick cash. Other methods would be:

  • unsecured loans
  • credit cards
  • secured loans

Most people know about unsecured loans and credit cards. However, many have never considered taking out a secured loan. These are great as they are based purely on the asset in question, whether it be a car, gold, fine wine, antiques or even a watch. This means that personal finance is completely irrelevant and anyone can get a loan. At Borro we offer secured loans on all these items and with a free valuation service to boot, can guarantee funds into your account within 24 hours of a loan application.

As far as vehicles are concerned, we would suggest our loans against cars to be the most viable alternative to logbook loans. Classic, vintage and performance cars are expensive assets. Not only are they expensive to buy, they are also very costly to maintain. Added to that, they offer a distraction from financial matters. When money is tight, our customers find the last thing on their minds is the upkeep and running of their vehicle and as such, we offer secured loans where we take your car away for a much shorter period than the length of a logbook loan. Not only this, but we offer loans against vehicles of any age from just 39.2% APR which is in stark comparison to logbook lenders - for example, just scroll down to the bottom right hand corner of this page by lender Mobile Money - that's it, you read correctly, 464.4% APR.

The long and short of it is that choosing a loan with Borro will cost you less than a logbook loan, safe in the knowledge that, once your financial situation has been secured, your prized car will be returned to you having been stored safely and securely with us. To find out more on our secured loans, call Borro today on 0808 163 3823 .

Ok, So How Much Can I Borrow Against My Car?

If you do decide to go for a secured loan, our Value of Cars page gives an in-depth guide to assessing the value of your vehicle.

If our comparison has help you make up your mind about logbook loans, but you would still like to know a little bit more about how other lending options compare to Borro, we have several other comparisons that may help. Information can be found on secured bank loans;or if you have outstanding invoices you may wish to see how invoice factoring compares to our service. For local services we have a UK Directory to help find the most convenient choice for you.

Benefits of Borro

  • Extract value from car without the need to sell
  • Free expert valuations
  • Flexible payment options - no hidden costs
  • No effect on credit rating/financial situation not checked
  • Finance in your account within 24 hours

Other benefits

  • free expert valuation
  • no early repayment fees
  • fully insured by Lloyds of London