Logbook Loan - How Log Book Loans Work

By Author: Colin McDermott
Total Articles: 3
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AutoMoney, one of the UK’s leading logbook loan lenders, are committed to fair, honest and professional customer service. Proud members of The Consumer Credit Trade Association, AutoMoney were forerunners in the creation of The CCTA Lending Code of Practice and adhere strictly to its principles! AutoMoney actively encourage customers to make additional repayments on their loan to repay the money earlier, thus resulting in less interest paid over a shorter period of time; all loans are initially set up over an 18 month term. Please note, AutoMoney are not Payday lenders and only offer secured instalment based logbook loans.


Logbook loans enable a customer to borrow a set amount of money against their vehicle, using the V5 document as security for the loan. This is similar to how a mortgage works. Different lenders will offer different terms and APR, but all reputable lenders must ensure the vehicle in question is free of finance and that the customer can definitely afford to repay the loan before agreeing to lend the money. Proof of income will need to be supplied as well as the ownership ...
... documents for the vehicle. Once a logbook loan has been agreed, the customer will need to complete a “Bill of Sale” that is then registered by the lender in the High Court in London.


You are eligible to apply for a logbook loan either on the high street or on the Internet as long as you are 18 and over, and meet the individual lender’s criteria. Different lenders will operate on different terms and conditions, but all will need to see the V5 (which must be in your name), proof of your income and outgoings and at least one form of ID with your photo, such as a driving licence or passport. Many lenders will also ask to see a recent utility bill to confirm your address. Whether you will be eligible if you have bad credit will be a decision made individually by the lender, but all reputable lenders will comply with data protection standards to keep your application confidential whatever the outcome.



With AutoMoney you could borrow from £100 up to £5,000 today, and they won’t add any interest for the first month and nothing to pay for 2 months. So, if you repaid the loan in full within the first month, you wouldn’t pay a penny in interest. And, they never charge any early settlement fees, so all you would pay is the amount you initially borrowed plus a standard Bill of Sale Registration Fee of £25. Plus, if you decide to keep your loan after the first month, your first repayment won’t be due for a further month. So, if you took out a loan in (say) January, you wouldn’t have to make your first repayment until March!



If you enter into a logbook loan using your vehicle as security, you must be aware that ownership of the vehicle passes temporarily to the lender for the duration of the loan. This is completed by the “Bill of Sale” document that you will be required to fill in at the time of agreement, which then allows you to keep driving your car but passes ownership 'temporarily' to the lender. This is then registered by the lender with the High Court in London, and once the loan is repaid, ownership of the vehicle will be passed back to you. It is important to note that "Bills of Sale" are not used in Scotland, but are used throughout England, Wales and Northern Ireland. Please note that when you have repaid the loan, there are not additional entries in the V5 logbook for your vehicle with regards to this "Bill of Sale". A logbook loan will not be classed as an additional owner in terms of previous owners in your V5 log book, therefore having a logbook loan will have no detrimental effect on the subsequent value of the vehicle.


Logbook loans are becoming a more popular form of borrowing money than ever before. Effectively, this is a secured loan with the value of the loan secured against the value of your car. This allows you to borrow up to tens of thousands of pounds with ease.