FAQs

What is a logbook loan?

If you have any questions or concerns about what it is that Laanc Loans does, please feel free to contact us at any time. We will do everything we can to answer all of your questions and remove any concerns that you may be having.

What is the difference between this and a V5 loan?

They are the exact same thing. The V5 is just the official name for a logbook. V5 is now called a V5C however.

What kind of car can I use?

You can take out a logbook loan on any car that you own. You must either own it outright or have little financing left on it. If there is still financing left on it, the current financing company must approve of the new loan. Also to be accepted by most lenders, your car will probably have to be made within the past 10 years.

Can I continue driving my car?

Yes! During a logbook loan, you get to keep your car. We know that getting to and from work is obviously essential to making money so you can pay back your loan. For this reason you are allowed to continue driving your car throughout the loan, provided you make your payments on time.

What if I have bad credit?

Credit scores don't matter when it comes to logbook loans. This makes them ideal if you have a bad credit score but need to take out a loan soon. As long as you meet the other requirements, you can take out a logbook loan, regardless of your credit score.

What amount can I borrow?

This will depend on which lender you choose from. Laanc Loans will present you with several options for lenders you can go with. Usually you can borrow up to 50 percent of your car's worth, but it will vary with lenders.

How fast will I get my money?

This will also depend on the lender you choose, but usually you will get your money on the same day, sometimes even within the hour. Each lender is different however, so see what they offer when browsing your options.

What are the repayment schedules like?

When you choose a lender, they will work with you to figure out a repayment schedule. This will be determined by your current income and how much money you take out. Obviously, the more money you borrow, the longer amount of time you will have to pay it back.

What happens if I am late with payments?

If you fail to meet your payments, there is the risk that you will lose your equity (in this case your car). There is usually a small grace period the first time you miss a payment, but every lender is different. When you are looking for a lender, see what their policy is on late payments. In many cases, our lenders will work with you though to make sure that your payments are reasonable to try and prevent this from happening.

What are the repayment schedules like?

When you choose a lender, they will work with you to figure out a repayment schedule. This will be determined by your current income and how much money you take out. Obviously, the more money you borrow, the longer amount of time you will have to pay it back.

What sort of paperwork do I need?

This will depend on the lender, but usually you will need your V5 (logbook), a MOT certificate, and some sort of proof of income. This will ensure that your car is yours, that it works, and that you will be able to repay the loan.

How can I compare different lender rates?

Sometimes it can be hard to compare the rates of different lenders. This is why lenders are required to use what is called the APR, or Annual Percentage Rate. This rate is the measure of the cost of interest and fees across one year as a percentage of the total loan amount. As an example, if you take out a loan of £2,000 at 20% APR for a year, you would pay £200 in interest charges and other fees. Your actual costs will depend on how much you borrow and the duration of the loan, but you can use APR to compare different lenders.

One note of caution however, is the advertised APR. By rule, this APR has to be offered to at least 51% of their customers. That means though that the APR you receive could be different from the one advertised, so always be sure of what you are signing up for.

How can I spot a good lender?

There is a code of practice that goes beyond what the law requires that comes from the Consumer Credit Trade Association. Many lenders are members of this group and follow its standards. Some of these guidelines include spelling out loan terms clearly, giving the borrower a fair chance to catch up if they fall behind on their loans temporarily and only giving out loans that are affordable. Not every lender that is a part of this group is perfect, and not every lender who isn't is disreputable, but this is a good place to start when evaluating a logbook loan lender.

What do you charge for your service?

We do not charge any fees for our service. Some lenders may charge early repayment fees, which means that if you pay off your loan early, you may still have to pay some of the interest that would have otherwise accrued. Other lenders don't charge any fees and allow you to pay back the loan as early as you'd like, so it is worth checking out.