Crown Auto Pawn makes it exceptionally fast and easy to get a loan against a motorbike.

Motorbike logbook loans are popular in the UK, but we offer a different type of loan – one that does not involve signing over ownership of your motorbike.

Getting a loan against a motorbike

Leveraging a motorcycle to raise funds is an attractive option for people who struggle to get traditional loans.

When credit history is poor, these types of secured loans are the go-to solution for many consumers.

In the UK, there are two funding options for bike owners to consider – motorbike logbook loans and pawn loans.

Getting a motorbike logbook loan

With this type of loan, the bike’s logbook or V5 registration document is handed over to the lender as collateral. The vehicle stays with the owner, and can be used as usual.

A logbook loan is called a car title loan in the United States. In England, Wales and Northern Ireland, it typically involves signing a bill of sale.

By surrendering the logbook, and voluntarily transferring ownership of the bike, it becomes the finance provider’s property, albeit temporarily.

Once the loan is repaid in accordance with the agreement, the logbook is returned.

Pawning a bike

Pawning a motorcycle does not involve signing over ownership to the lender. It is a straightforward transaction, where the bike is used to secure an immediate cash loan.

As with all pawn loans, the motorbike is retained by the lender until the conclusion of the agreement. It is securely stored, and returned on full repayment of the borrowed funds.

Risks of log book loans against bikes

The risks associated with logbook loans are two-fold.

As reflected on the signed bill of sale, the lender owns the motorbike. This entitles the lender to legally repossess the vehicle and sell it if payments are in arrears, or the loan is not repaid.

If the sale of the motorcycle raises less than the outstanding loan amount, the shortfall must be paid by the borrower.

This can leave the consumer without a motorcycle and with significant debt. That debt can include the cost of repossession and any fees levied to pursue late payments.

As logbook loan providers can repossess vehicles without the consent of a court, consumers do not get the consumer protection they experience with other types of credit.

Lenders are less inclined to negotiate when payments are in arrears, and threaten repossession instead.

According to Citizens Advice, there is a reluctance to “allow for alternative, affordable payments amounts when the customer or his appointed debt advisor… makes a reasonable proposal.”

There is repeated evidence that logbook lending can lead to instances of severe consumer detriment.

“The imbalance of power between the lender and consumer as no court order is needed for repossessions can drive harsh debt collection and repossession practices causing both financial and psychological harm.”

The use of the Victorian-era Bills of Sale laws has been criticised due to the confusing and often incoherent language used in the rules.

What’s better about our loans

Securing a loan through Crown Auto Pawn is advantageous for a number of reasons:

• no bill of sale required
• no monthly repayments
• fixed rate of interest
• no hidden fees or early settlement penalties
• subject to consumer protection regulations
• loan based on a percentage of the bike’s appraised resale value.

What kinds of motorbikes you can pawn

At Crown Pawn Auto, we accept all makes and models of motorcycle. Bikes must be free of finance, and in good running order and condition.

Next step for getting a loan against a motorbike

At Crown Auto Pawn, we do not offer motorbike logbook loans in the UK. We do offer a better asset-backed alternative.

Call us on 0333 344 8507, send us a WhatsApp or complete our online application form. We’ll give you an initial offer of a loan remotely, based on the information provided.

If you wish to proceed, we’ll conclude the transaction at a time and place of your convenience.

Complete an application now