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Best Logbook Loans for Older Cars

Compare deals on using your older car to get a loan.

Old Car Logbook Loans – Fast Facts:

Get to know the facts about logbook loans:

  1. Use your old car to get a loan.
  2. This is a type of secured loan.
  3. The loan provider will owns the car temporarily.
  4. You must own your own car.
  5. You still use the car day to day, the official ownership is all that changes.
  6. Borrow between £500 and £50,000.
  7. Expensive interest rates apply.
  8. Missed repayments may lead to penalties, but you are not likely to lose your car.
  9. To borrow money against an older car is an expensive way to borrow!
  10. Financial conduct authority regulated lenders are essential to mitigate your risks.

Read the full guide below, or skip to the best rates.

Compare the Best Old Car Logbook Loans

Checkout the best UK online deals below.

Car Cash PointCash Cash Point Platinum

Best rate 89% APR representative.

6 month – 18 month loan duration.

£1,000 – £1,000,000 loan amount.

Varooma LogoVarooma Logbook Loans

Best rate 98.05% APR representative.

12 month – 36 month loan duration.

£1,000 – £150,000 loan amount.

Auto Money Logbook Loans

Best rate 160.2% APR representative.

18 month – 36 month loan duration.

£500 – £5,000 loan amount.

How can I get a logbook loan on my old car?

You will only be able to get a logbook loan on a car that has significant value. This usually means that cars that are more than 10 years old – unless they are rare or classic vehicles – will not be accepted as security and you will be rejected for the loan.

What is the biggest amount that I can borrow?

This depends on the value of the car, and is affected by things like the age, condition, mileage, and market popularity of the car. The higher the value, the more loan you will be able to secure – but don’t expect to be able to borrow the full value of the car, lenders need to ensure that they can recoup for their costs and risk if you fail to pay.

How much you can borrow will also depend on your ability to pay. If you have no job, and cannot provide a reasonable method with which you’d be able to pay back the loan, then you are not likely to get a loan.

Will they provide a logbook loan against my type of car?

The key isn’t the type of car, but the value. As long as it can be sold for enough to cover the debt and the costs associated with interest, fees, collection and sale, it could qualify as reasonable security against the loan.

What are the age limits on old car logbook loans?

No, not really. For a regular car, you are not likely to get a loan if it is over ten years old – but this is only because it is not likely to be valuable enough. If the car is a vintage Ferrari, a mint condition Bentley, or something similar, then it likely retains significant value, and would therefore be suitable as security.

The best way to tell is to have your lender valuate the vehicle according to their own criteria, and decide then if the deal is for you.

Keep in mind though, the value of the car is only part of the equation. Even with a high-value security item, the lender is obligated to only lend money to someone who is reasonably able to pay back the loan. If you have no visible means to do so, you may be refused even with a valuable car to offer.

How to get the right logbook loan?

When seeking a lender, look for one that offers a loan that meets your needs – both the amount they are willing to lend you, and the repayment terms. Read and understand all of the fine print, and finally, shop around to find the best deal. It is always prefererable to use a lender that is registered in england, and authorised and regulated by the financial conduct authority (FCA).

Can Scottish residents get a  logbook loan?

Because a Bill of Sale is not valid in Scotland, you will have to sign a “hire purchase” agreement, but you can still get a loan. You could consider the payday loans, or perhaps an instalment loan as an option. We also compare the best personal loans on our website.

FAQs on Older Car Logbook Loans

What are the financial implications of not making payments?

Because the lender has legal ownership of your vehicle during the period of the loan, the risk carried is almost all on you. If you fail to pay your loan on time and in full, you are in danger of losing the vehicle. The lender will not need a court order or any other kind of permission to take and sell your car – you signed this right over to them when you agreed to the loan. Collection may also incur fees that you will be responsible for.

You could look at getting a debt consolidation loan if you’re struggling with multiple forms of debt, or alternatively transfer your balance onto a credit card, such as the balance transfer cards, which can help get 0% interest on your loans for a short period.

Since most logbook loans are for a maximum of half the value of the vehicle, you stand to lose out on twice the value of the loan – or more, if it has been partially paid back already. The lender will not necessarily own you any additional money earned by the sale of the vehicle, but you are still liable if the sale was insufficient to cover the debt. In short, you may lose your car and still owe some money afterward.

Even if your lender chooses not to take possession of the vehicle, interest rates and penalty fees can be substantial.

If you think you’re going to have trouble making your payment, contact the lender right away. Hiding will make them nervous and they may take action immediately to recover their investment. By coming forward and keeping things in the open, you maintain a high level of trust, and most reputable lenders will be willing to work with you to make sure you get the loan paid pack as soon as you can, and that you maintain ownership and possession of your vehicle.

How will missed payments affect my credit score?

If you don’t pay for a loan and it is reported to the credit bureau, your credit rating may be adversely affected. If this happens several times, your ability to get credit – or even get certain types of job – will be harmed. We have an article on how to improve your credit rating here.

How are Logbook loans collected?

Even if you have not contacted your lender before missing a payment, most will contact you to arrange a second try, or even to renegotiate to a payment you can handle. If you repeatedly fail, however, or if they don’t hear back from you and can’t get in touch, they may take legal action or take possession of the vehicle – or both. Make sure you are familiar with their standard practices before you agree to the loan.

What can I do if I’m struggling to repay my logbook loan?

If you are struggling to make repayments on a logbook loan you can get free advice from charities like StepChange, Citizens Advice Bureau and the National Debtline, which specialise in debt control and repayment.

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Yes you can still get a log book loan on a ten year old car or older still but there are a few gotchyas to be wary of. Firstly it depends what make, model, condition and value the car is. If the car is a valuable older car or even a classic car, then you will still be able to get a logbook loan against it. Lenders will only factor in depreciation and not appreciation of a car in most cases, so if you have a car that is growing in value like a Skyline GTR v spec for example, they will only value it on their own trade value (eg poorly).

Generally the lender looks to negate the risk of you not paying vs what the cars value as a saleable asset would be during and at the end of the loan term.
If your car is a 15 year old nissan micra with 150,000 on the clock and 1 months mot left, it may be harder to get a useful logbook loan against it as its resale value will be very low.

Getting a logbook loan for an older car is as safe as any other high interest loan, in other words if the lender is FCA regulated (which they should be) and their company has a good reputation online (be sure to do some research on them online before taking anything out) then provided you make the repayments in full and on time, every time, then you should be ok with the loan.

The simple answer to this is, hopefully. Here at best loans we are not in it for the profit (indeed we are not a comission based site) as we are finance enthusiasts at heart. So taking a logbook loan out is really only if you are in dire financial straits and is NOT to be taken lightly at all. For example, are you going to be able to payback the loan in full to ensure you have the debt paid and your car title fully rebought?

Compared to some fast loan options like Payday Loans, logbook loans can be a cheaper way to get fast cash (its not AS fast, but still can be done quickly), however the interest rates even from the most competitive providers are still nearly 90% which means a hefty penalty in interest on top of the loan you take out. Use logbook loans with great caution (or not at all ideally) and always be 100% sure that you can afford to repay any loan you take out, on time and in full.

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