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.
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.
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 .
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.