Logbook loans have gained popularity over the years, mainly due to them being no credit check loans. Logbook loan lenders don’t require a credit check since they secure the loan against your car (or other vehicle). The loan specially works by the lender keeping hold of the logbook (V5) and usually the MOT certificate throughout the term of the loan. This means that they have the legal right to take your car should you not be responsible to the debt! These subprime loans do work out very expensive for longer payment plans and so you should minimise that borrowing term. In regards to the logbook loan lenders, three popular names include Logbook Loans, Mobile Money and V5 Loans. Two newcomers include Car Cash Point and Easy Logbook Loans. Logbook loans tend to stretch up to £50,000, based on the value of your car. The loan duration can also be stretched over a few years.

Only specific interest examples are provided by each lender and so this makes it difficult to gather a true picture of the value of each company. Logbook Loans (via Simple Fast Loans) and Mobile Money were the only lenders to provide logbook loan calculators. I would assume from these numbers below that Logbook Loans stand as the cheapest, although it would be interesting to see Car Cash Point’s rates for a 72 week term. An additional example has been made for Logbook Loans for just 24 weeks (6 months). A 12 month example for them has also been added in the summary below that compares them with a guarantor loan lender on the same terms. Also just to add, the weekly premiums marked with (RO) are simply rounded off! This is due to the initial payment usually differing to the regular payment amounts due.

Compare Logbook Loan Rates…
Logbook Loans | £1000 loan over 72 weeks @ £39.54 (RO) = £2846.86 (184.686%)
Mobile Money | £1000 loan over 72 weeks @ £41.81 (RO) = £3009.96 (200.996%)
Easy Logbook Loans | £1000 loan over 24 weeks @ £131.66 = £3159.84 (215.984%)
Car Cash Point | £1000 loan over 104 weeks @ £32.63 = £3393.52 (239.352%)
V5 Loans | £1500 loan over 78 weeks @ £56.26 = £4388.28 (338.828%)

Other UK Logbook Loan Lenders…
Logbook Lenders | £800 loan over 72 weeks @ £33.53 (RO) = £2413.98 (201.748%)
Loans 4 Logbooks (321.6% APR is displayed, but there is no loan example)

Many logbook loan lenders display interest examples that differ in the term duration to their competitors; they may do this to disguise higher rates. The only two logbook lenders that did provide logbook loan calculators was Logbook Loans and Mobile Money, which is why you can see the 72 week comparisons for each above; the calculator wasn’t actually found on the Logbook Loans main site, but on a secondary site called “Simple Fast Loans” (same content and theme, although Simple Fast Loans comes with the calculator). As it stands, it is Logbook Loans that works out the cheapest of the pack although that interest rate just below 95% on the actual amount borrowed is still very high for that short term. I used the interest as a percentage rather than APR, since I prefer it and also the Easy Logbook Loans quote was 24 weeks (6 months) with APR being an annual calculation.

If you checked out the subprime credit card and doorstep loan comparisons you will see that a recommendation was made in each section. This is not going to happen here with Logbook Loans. There are a few reasons for this such as there being no relationship with a lender here. A major concern is in regards to the cost of these loans. As an example, the Logbook Loans lender tends to provide the best rates for these loan types and for a £1000 loan with them for 48 weeks (12 months) you would have to pay back in total £2553.66. In comparison, with Guarantor Loans Online for a £1000 loan for 48 weeks (12 months) you would pay back in total just £1253.16 (that’s a massive £1300.50 guarantor saving). Logbook lenders tend to have limits in place for the vehicle age as well such as being under 8 or 10 years old. They also usually have to be completely free of finance and be in a good condition to merit their value. With this in mind, no recommendation is made here.

Recommendation: See above.

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