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Below you will find the most frequently asked questions (FAQs) about getting a logbook loan from LoanOnYourCar.co.uk.
If you cannot find the answer you are looking for, please call us on 0333 577 5000 or contact us on sales@loanonyourcar.co.uk
A logbook loan, is a way of withdrawing cash from your car. You can borrow up to 65% of the trade value of your car and pay it back over 18 to 60 months.
You continue to remain the registered keeper and use your car as normal.
Over the last 20 years, there has been a significant growth throughout the United Kingdom of people using their vehicle as security for obtaining short-term credit, often referred to as "Logbook Loans’
This is a type of loan that allows car owners to withdraw equity from their car, provided it is free of finance. The owner puts their car up as security against the loan and can retain full personal use of their vehicle for the duration of the loan. The original logbook loan used a bill of sale to secure the car against the loan via the Bill of Sale Act of 1882 and a consumer credit agreement against the borrower.
Bills of sale are incredibly old and date back to the late 18th century, and were used originally for goods such as dogs and horses. It's only in recent years that they have been adapted for homes and vehicles. The role of the bill of sale is to transfer ownership of the item between parties. The bill also acts as evidence of the transaction and will record all relevant information, such as date, location, and monies transferred into consideration.
What is the role of a bill of sale in a logbook loan?
In England, Wales, and Northern Ireland, a Logbook Loan traditionally consists of a bill of sale agreement and a consumer credit agreement securing the loan on the vehicle. However, the borrower will also be required to surrender their V5C logbook and often the spare key for the car.
Upon signing both agreements, the ownership of the vehicle is transferred to the lender. This is then stamped in the Royal Courts of Justice within 7 days, and the bill of sale is then valid. In addition, a bill of sale offers limited protection or recourse for borrowers. More importantly, it extends powers to the lender and allows repossession without a court order if the borrower defaults on two payments.
It’s worth noting that while England, Wales, and Northern Ireland recognise a Bill of Sale by law, in Scotland, these documents are illegal and therefore not used.
When the loan is settled by the borrower, the bill of sale that is linked with the logbook loan and vehicle becomes invalid, and the car’s ownership transfers back immediately.
Bills of sale are regulated by two Victorian acts of law:
In Scotland, logbook loans using a bill of sale are not allowed under Scottish law.
Rather, the borrower signs an ‘agreement’ transferring ownership of the vehicle to the lender, and the borrower hires the vehicle back under a Hire Purchase (HP) agreement. The borrower still retains full use of the vehicle, provided payments are maintained, and full ownership reverts to the borrower when the final payment is made. Hire purchase agreements are regulated under current consumer legislation and are considered fit for purpose.
Over the last few years, the government has been modernising regulation of the consumer credit market to ensure that it is fit-for-purpose and provides adequate consumer protection.
As part of this agenda, in 2014 the government transferred responsibility for consumer credit regulation from the Office of Fair Trading (‘OFT’) to the Financial Conduct Authority (‘FCA’).
Responsibility for the regulation of consumer credit has enabled the FCA to tackle some concerns about logbook loan lenders, such as aggressive debt collection practices, but the FCA does not have the power to update the outdated legislation.
In 2015, the Law Commission initially consulted on the reform of the existing legislation, and its final report and recommendations to reform the Bill of Sale Acts (logbook loans) were published in September 2016.
It concluded that the current law is archaic and wholly unsuited to the 21st century. It was recommended that the Bill of Sale Acts be repealed in their entirety and replaced with a new “Goods Mortgages Act” to govern the way that individuals may use their existing goods as security for a loan or other obligations.
The proposed new legislation aimed to replace the outdated Bill of Sale Act with a modern legal framework largely based upon the ‘hire purchase’ consumer credit business model, which has been in existence for many years.
In May 2017, the government decided to shelve the Law Commission’s review and recommendations to reform the Bill of Sale Act for logbook loans in favour of working on the FCA, as they carried out their high-cost credit review.
We don't use a Bill of Sale to deliver our loans, we use more modern, consumer friendly rules.
To pawn your prestige, classic, or vintage cars, please speak to our colleagues at www.releasemycapital.co.uk. They specialise in secured short-term loans on luxury assets.
The proposed Goods and Mortgages Act was never designed to curtail the ability to use your car as collateral for a loan, but rather to ensure greater consumer protection for the borrower and to provide more transparency.
In June 2019, LoanOnYourCar.co.uk entered the logbook loan market as a direct lender with a new logbook loan product. Its aim was simple: to honour the spirit of the shelved Goods and Services Mortgage Act.
The new logbook loan still allows the borrower to retain full personal use of their vehicle for the duration of the loan; however, it is secured against the car using a hire-purchase agreement regulated by the Consumer Credit Act. This is compared to the original logbook lenders securing the car against the loan via the Bill of Sale Act of 1882.
LoanOnYOurCar.com has established itself as an ethical and responsible lender in the UK, specialising in Vehicle Equity Release. We use a regulated Hire Purchase agreement, rather than using the antiquated Bill of Sale as used by Logbook Loan providers.
LoanOnYOurCar.com are securing the Logbook Loan in throughout the United Kingdom using a Hire Purchase Agreement as regulated by the Consumer Credit Act 1974, which allows for the provision of a Scottish Logbook Loan.
LoanOnYOurCar.com is committed to the highest levels of professional care, with its reputation and integrity being paramount.
As a lender, LoanOnYourCar.co.uk is regulated by the FCA and is a fully accredited member of the Consumer Credit Trade Association and fully complies with its 'Code of Practice'.
More importantly, our business ethos and culture are premised on the principle of "treating all customers fairly." LoanOnYourCar.co.uk will be transparent, honest, and fair. Every loan will be subject to affordability and suitability checks to ensure the borrower is able to maintain the loan repayments.
LoanOnYourCar.co.uk has a mission to become the UK’s leading FCA-regulated vehicle equity release specialist, offering a proven and preferable logbook loan solution for people looking to raise short-term finance from their vehicles.
To pawn your prestige, classic, or vintage cars, please speak to our colleagues at www.releasemycapital.co.uk. They specialise in secured short-term loans on luxury assets.
New: Hire Purchase agreement - regulated by the Consumer Credit Act 1974
Original: Bill of Sale agreement - regulated by the Bill of Sale act 1882
New: You complete the loan online. A home visit is not required.
Original: A company agent is required to meet you face-to-face in your home or place of work.
New: Contracts issued online and signed via eSignature. Payment within 1 hour of receipt of all documents
Original: Multiple loan agreements and supporting documents have to be physically signed and witnessed by a fully Independent 3rd party
New: Our representative APR is 204.2%. We are never beaten on price, we will beat any other lender offer by 10%
Original: Lenders' typical APRs range from 209% – 500%
New: No set-up fees, the customer can pay off their loan early, penalty-free and at any time. Borrowers can also make overpayments at any time to reduce how much interest they pay
Original: Logbook Loan Lenders may charge set-up fees, penalties for settling early and excessive charges if the loan falls into default.
Your application is completed online without the need for a home visit with one of our expert loan consultants. We invite you to sign your agreement using our e-signature facility. Plus you can email your supporting documentation via email and we will complete your car video inspection via WhatsApp. This means we can typically pay out your loan within hours of receiving your documents.
E-sign, also known as eSignature, is a safe and secure digital version of the paper-based method of signing signatures, on an electronic document. But beyond being just a squiggle on a screen, an eSignature legally binds an electronic document, in just the same way as paper ones do.
Yes. LoanOnYourCar.co.uk is regulated by the Financial Conduct Authority and is a member of the Consumer Credit Trade Association.
No, LoanOnYourCar.co.uk will not take your V5C (logbook) document.
Yes. As a responsible lender LoanOnYourCar.co.uk must consult with and report to credit reference agencies or similar organisations. Plus, we look at your personal circumstances, using our standard affordability checks, in order to come to a lending decision.
Yes. subject to meeting our standard affordability and income checks.
No. Sorry, we will not lend unless you are full-time employed. We do not accept benefits.
The same day, subject to compliance with our terms and conditions. With us you can sign electronically, which speeds up the whole application process.
The quickest way is to apply online at www.loanonyourcar.co.uk or call 0333 577 5000 and speak to one of our loan team. They will provide you with a no obligation quotation, and if you accept, we could complete the loan on your car the same day.
Often the same day. Once the application is completed, the money will be transferred to your nominated bank account within 1 hour.
At LoanOnYourCar.co.uk, we believe in complete transparency. There are no early payment penalties, no upfront deductions, no monthly minimum charges, and no default fees. There is a one-time set-up fee of £40, and that can be added to your loan. There is an option to purchase the fee at £25.
LoanOnYourCar.co.uk offers loans from £500 up to £150,000, subject to our terms and conditions.
Payments are taken on a debit card or if preferred a standing order can be set up. We are unable to take credit card payments.
Payments are taken weekly or monthly.
Yes. You can pay back your loan at any time penalty free. All we require is 30 days notice or interest in lieu of it.
We require that your car be free of finance, less than 10 years old and has a trade value (this is generally lower than a dealer sale price) of more than £3,000.
Yes. LoanOnYourCar.co.uk can offer loans on cars with existing finance, provided that the finance is cleared with the proceeds of the new Loan. In this circumstance, a settlement statement will need to be provided from your current lender to confirm the full settlement amount.
Yes. Your LoanOnYourCar.co.uk solution can be extended to suit your personal circumstances to provide you with flexibility. This is subject to our terms and conditions and the valuation of the car.
Whilst the loan is live, as the registered keeper, you have responsibility to maintain the car and to ensure it has comprehensive insurance cover.
Yes. If you have outstanding finance on your car with any Lender you can 'Switch and Save'. To a loan with us we offer a quick, easy and affordable alternative which will show you how we can save you money.
We will ensure a swift hassle fee transition within 24 hours.
If your circumstances change and you get into financial difficulties, LoanOnYourCar.co.uk will act compassionately and sensibly to provide assistance. We will discuss and agree a workable payment plan with the objective of getting you back on track in a fair and realistic manner.
The Loan is secured on the car and in the event that you are unable to meet the terms as provided, the car can be sold by us and the proceeds of sale used to clear any money provided and the balance returned to you.
Yes. You need to inform us before you start the process. Please call us on 0333 577 5000 option 3 to discuss when you are ready to sell so we can provide you with the information needed by the buyer of the car.
Our business ethos and culture are premised on the principle of 'treating all customers fairly'. If, for any reason, you are unhappy with any aspect of the service you receive, please contact us immediately, and we will endeavour to fix it as quickly as possible:
Email: customerservice@loanonyourcar.co.uk
Telephone: 0333 577 5000
If you are still not satisfied with the outcome or resolution of your complaint, you have the right to refer to the Financial Ombudsman Service. Our customer services team will be happy to assist you with this.
If you borrow £1,000 over 36 months at a flat rate of 84% per annum (fixed) with a Representative 207.3% APR, you will make 36 monthly repayments of £97.78. The total amount repayable will be £3,585.08, including a £40.00 document fee and a £25.00 Option to Purchase fee. The total charge for credit is £2,585.08. Logbook loan repayment terms are available from 18 to 60 months. The maximum APR is 389.1%.
During the term of the loan, legal ownership of the vehicle passes to J2P Autos Limited, while the borrower remains the registered keeper.
You have 15 days to withdraw from signing a new agreement, with interest payable for the days the loan is outstanding. Complaints can be sent to customerservice@loanonyourcar.co.uk.
⚠️YOUR LOAN IS SECURED AGAINST YOUR VEHICLE. MISSING PAYMENTS COULD PUT YOUR CAR AT RISK OF REPOSSESSION. A DEFAULT MAY ALSO NEGATIVELY AFFECT YOUR CREDIT RATING.
