Logbook Loans
Should you consider a logbook loan in the UK? We explore the issues and offer an alternative.
Do you want to get a loan against your car and still drive it?
This may sound like a great deal. In practice, logbook loan schemes tend to be expensive and complicated – and they put vehicle owners at unnecessarily high risk of losing their cars.
What is a logbook loan?
Called a “car title loan” in the United States, this type of loan involves transferring ownership of your vehicle to a lender. Your registration papers, or “logbook”, for the vehicle serve as security for the loan.
A problem with this loan type is that to get ownership of your car back, you have to buy it back from the lender.
This creates high potential risk for consumers. It can be much more expensive than you realise, or you may struggle to get your vehicle back at all.
Before you take a logbook loan, consider the following:
- approval can be complex and requires submission of payslips and bank statements
- you might still be driving your car but you won’t own it
- if you want your car back, you’ll have to buy it back from the lender
- a logbook loan is usually more expensive than simply pawning your vehicle (because you have to buy back your own car)
- approved loan amounts tend to be smaller for logbook loans than pawn loans.
What’s different about pawning your vehicle with Crown Auto Pawn?
- we offer straightforward asset-based loans – quick, affordable and convenient
- you won’t lose ownership of your vehicle as part of a loan agreement
- you’ll bring your car in and leave with your money; it’s immediate – no complicated application process
- you won’t be able to drive your vehicle for the loan duration (but it stays in your name, in a secure, access-controlled facility)
- you’ll benefit from the security of dealing with an FCA-compliant company.
- Our representative will call you
- Bring your vehicle in for a value confirmation
- Ensure the documentation is correct
- Read, complete and, if happy, sign the agreement
- Funds are transferred into your bank account.
Contact Us
Call us for more information on 0333 344 8507
APR & Loan Repayment Period
Average representative APR 68.3% and 6 months loan.
Renewals
If you wish to renew the loan at the end of the loan period, if we agree and pay you off the interest you can renew the contract immediately.
Collection
All payments are made via EFT or at the end of the loan period.
Representative APR 68.3%
REPRESENTATIVE EXAMPLE
AMOUNT OF CREDIT
DURATION OF AGREEMENT
RATE OF INTEREST
TOTAL AMOUNT REPAYABLE
AMOUNT OF CREDIT
£10,000
DURATION OF AGREEMENT
6 months
RATE OF INTEREST
60% (Fixed) P.A.
TOTAL AMOUNT REPAYABLE
£13,000 (In one instalment)