Can you secure a loan against your car?

A loan against your car can be a good way to borrow money using your car as security for the loan. And you could be accepted even if you have a poor credit history. Also known as logbook loans, a loan against your car offers you a good amount of flexibility. …

How can I check if a car is under finance?

A PPSR check is included in every PPSR report. It’s a way of finding out if the used car you want to buy has finance owing on it. We conduct a PPSR search by scanning the PPS register (short for Personal Property Securities Register) for any security interests that may be registered over the vehicle.

Can a logbook loan be taken out on a car?

She had paid £3,000 for the Suzuki Jimny in January, which she spotted on eBay and bought from a garage. The car had a logbook loan taken out on it. This is where a borrower uses their vehicle as security against a loan and the lender retains the logbook or vehicle registration document.

Can a logbook loan show up in a DVLA check?

“When buying a car it’s important to carry out the necessary checks to avoid this kind of thing. But if the car has not been registered correctly, a logbook loan might not show up in a DVLA check. “As household budgets continue to be stretched, it’s important people are protected from unscrupulous lenders.

How can I get my money back from a logbook loan?

If you want to get the car back, you could pay off the outstanding loan and then take the person who sold you the car to court to try to get your money back. If you just want to get your money back, you can take the person who sold you the car to court.

How to check if a car logbook is valid?

Ask to see proof of their identity and their authorisation to take the car. Ask to see the bill of sale document – they have to show you this if you ask for it. If there is time, contact your local Citizens Advice for help finding out whether the bill of sale is valid.

Where can I get a logbook loan for a car?

A logbook loan may only be issued by an FCA regulated company. The loan is secured on the vehicle using a bill of sale and the customer is asked to sign a consumer credit agreement.

What happens to my car if my logbook loan defaults?

If a logbook loan has defaulted, the creditor can repossess your car. They must wait a minimum of five days after the account has defaulted before they can take the vehicle away. They don’t need to take you to court to do this.

How long does it take to pay a logbook loan back?

You can continue using the vehicle, but if you don’t pay the loan your vehicle can be taken away and sold. Logbook loans are normally paid back over 1 to 3 years. The amount you can borrow depends on the value of your vehicle and is usually £400 to £5,000. The rate of interest on logbook loans is very high, often 300% APR or more.

How are logbook loans regulated in the UK?

In England, Wales and Northern Ireland two separate agreements are used when a logbook loan is issued: A personal loan agreement is signed, setting out how much you borrow and how it is to be repaid. This is regulated by the Consumer Credit Act A ‘bill of sale’ agreement is also signed.