Compare Logbook Loan Lenders
Logbook loans are designed as an alternative to payday loans, with the key factor behind them being that they require no credit checks. This is due to the loans being secured against your car (or other vehicle)! This is done by the lender keeping hold of the logbook (V5) and usually the MOT certificate for the duration of the loan term. The terms involved can run for a long time, with some logbook lenders even stretching the terms over a few years and the loan amounts are as high as £50,000. The actual amount loaned is based on the vehicle’s value. I’m not sure if there is a general ruling, but it seems that some lenders borrow 50% of that valuation. There’s actually a fair few UK logbook loan lenders operating today. Three popular names include Logbook Loans, Mobile Money and V5 Loans. Two new kids on the block include Car Cash Point and Easy Logbook Loans.
Note: You will only find specific interest examples on most logbook sites; this makes it difficult to gather a true comparison. Logbook Loans (via Simple Fast Loans) and Mobile Money are the only logbook lenders to provide loan calculators. I would assume from the data below that Logbook Loans are the cheapest, although Car Cash Point may be competitive on a similar term. Finally, the weekly premiums marked with (RO) are simply rounded off! This is due to the initial or final payment differing to the regular payments.
Compare Logbook Loan Lenders
Logbook Loans | £1000 for 72 weeks paying £39.54 (RO) per week = £2846.86 (184.686%)
Mobile Money | £1000 for 72 weeks paying £41.81 (RO) per week = £3009.96 (200.996%)
Easy Logbook Loans | £1000 for 24 weeks paying £131.66 per week = £3159.84 (215.984%)
Car Cash Point | £1000 for 104 weeks paying £32.63 per week = £3393.52 (239.352%)
V5 Loans | £1500 for 78 weeks paying £56.26 per week = £4388.28 (338.828%)
Less Well Known Logbook Lenders…
Logbook Lenders | £800 for 72 weeks paying £33.53 (RO) per week = £2413.98 (201.748%)
Loans 4 Logbooks (321.6% APR is displayed, but no loan example is provided)
From studying the logbook loan lenders list above, you will notice the varied terms used, which is due to each lender providing unique examples; they may do this to disguise higher competitor rates. Logbook Loans and Mobile Money were the only two lenders to provide actual calculators; the calculator for Logbook Loans was not found on that site though, yet in fact on a secondary site they own by the name “Simple Fast Loans”. From the above, I would have to say that the cheapest logbook loan lender would be Logbook Loans, who also happen to be the market leader, which is evident by them ranking at the top of Google for the major logbook loan keyword terms. Interest for all lenders was calculated as a percentage of the amount borrowed rather than APR, as I prefer it this way and also the Easy Logbook Loans quote was for 24 weeks (6 months) and APR is of course an annual calculation.
This logbook loan comparison posting is similar to those comparing credit cards and doorstep loans already on the site, with the exception that no recommendation has been made here (with the 10 reasons for the choice). There are various reasons for this with the main one being that they are just a little too on the expensive side (for just a monthly loan they won’t work out too costly though). Another concern other than the cost was that most Logbook lenders tend to have vehicle age limits in place, typically being under 8 or 10 years old (not many of us have such recent vehicles). They also usually have to be completely free from finance, be in good condition to merit their valuation and if home visits aren’t provided then you will have to travel to a branch to run through the loan process. With this in mind, no recommendation is currently made here. I will try to find quotes for each lender over the same term period and update the posting when this is done. Car Cash Point is one particular lender I am interested in seeing over the shorter loan duration.
Top Recommendation: See above.
(tags: bad credit secured loans, car logbook loans online, logbook loan lender list uk, no credit check logbook loans, poor credit finance)