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How Does a Logbook Loan Work?

V5 Vehicle Loans Explained

What is a logbook loan?

Logbook loans, sometimes known as a V5 loan, are a form of secured lending, using your car, motorbike or other vehicle as security against the loan.

How does the loan process work?

In England, Wales and Northern Ireland, a logbook loan is done through a ‘Bill of sale’, which is a legal certificate of transfer of personal property.

The bill of sale will be registered by the lender, who then takes temporary ownership of your vehicle. It is important to note that while the logbook lender takes ownership, the borrower still physically keeps and continues to drive the vehicle, as long as the loan repayments are made.

The borrower also hands over their logbook (V5 registration document) to the lender. No changes are made to the logbook and it is stored safely for the loan period – hence the name 'logbook loan'.

Once the loan is repaid, the lender transfers full ownership of the vehicle back to the borrower, together with their logbook.

Who may logbook loans be suitable for?

They can be a quick and convenient way for people who, for whatever reason, don’t want to go through the traditional lending route, or for people who have an adverse credit rating, to get the cash they need.

What are the risks?

As a logbook loan is secured against a vehicle, it is important that a borrower is aware that any permanent default on repayments may lead to the repossession of the vehicle used for the loan.

Can I get a logbook loan in Scotland?

For logbook loans in Scotland, a bill of sale is not used, instead a lender will loan money through a hire purchase agreement. The borrower also keeps the use of their vehicle while making the loan repayments.

Are logbook loans regulated by the financial authorities?

Yes, in England, Wales and Northern Ireland, logbook loans are regulated by the Bills of Sale Act 1878 and Bills of Sale Act (1878) Amendment Act 1882.

Lenders must also be authorised by the Financial Conduct Authority (FCA) and hold the appropriate consumer credit permissions before offering logbook loans.

Why choose us?

Our logbook loans focus on you, the customer, getting the money you need as fast as you need it, no endless paperwork and no hassle.

At we aim to give you the customer service, low rates and flexibility you want in a loan, from weekly or monthly payments, our unique pay as you go interest, and your choice of settling the loan early with no penalties.


Our benefits:

 Fast application

Same day cash*

All credit types considered

Flexible payment options

Keep driving your vehicle

For a free no obligation quote, simply call us or fill out our quick quote form and we will let you know how much you can borrow today! 

* Subject to the loan being approved, cash will be paid out within an hour. All loan applications are subject to a creditworthiness and affordability assessment.

Warning: This type of loan is secured on your vehicle. Missed or late payments may incur fees and/or the repossession of your vehicle.