Best Logbook Loans: Direct Lenders Compared

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Last Update: November 9th, 2016

Compare Logbook Loans for Bad Credit

About:

Logbook loans are subprime products secured against a borrower’s logbook (V5C). The V5C document was previously known as V5 that is still often used as a generic term for this type of loan. Agreements are made on a Bill of Sale that is a legal contract between the borrower and the lender that an item of personal property was sold, but this property doesn’t change hands and it can still be used during the contract. The lender is protected with the right of seizure without a court order. They can take your car, sell it, and still chase up for any shortfall. Repossession is of course always taken out as the very last resort.

These contracts are based on the Bills of Sale Act 1878 that took on an amendment in 1882. Agreements aren’t legally binding in Scotland that is why conditional sale or hire purchase arrangements are alternatively used there. Due to the protection, lenders don’t need to process credit checks although a few do. Huge payouts as large as £50,000 are headed although there are caps against the vehicle’s value (typically 70%). Repayments are commonly spread out as far as 5 years. In general, they are seeking cars, but other vehicle types may be used. It is common to see a 10 year age restriction on the vehicle, although a select few companies impose no such limits.

Dominance:

The original major player was Logbook Loans that was controlled by a former footballer (Iain Shearer). This company faced difficulties and entered administration. Their licence was revoked that was primarily due to debt collection tactics employed. Hermes Property Services Ltd were later granted permission to take control of the brand, but this had lost its way and was no longer commanding top ranking positions in search engines. As a result, market share balanced out across several companies who started to roll out shops nationwide and advertise on TV to compete. Hermes Property Services recently joined forces with Loans 2 Go on the 23rd January 2015. L2G boasts the largest V5 network with 78 branches and so this fusion has created a major powerhouse.

Eligibility:

This is the only market whereby multiple lenders are offering bad credit loans with no credit checks. Defaults, harsh CCJ markings and even past bankruptcy isn’t a roadblock here. You will need to be a UK resident aged at 18 or above. You must also be the owner of a vehicle that is free (or nearly free) of finance. Some applicants may get caught out by the required vehicle age of 10 years whereby exceptions are typically only made for classics. There are fortunately a few companies that offer logbook loans for older cars. One final point on credit checking is that you’ll have to demonstrate affordability and so a few bank statements will have to be shown, especially if you are self-employed.

Market Size:

The V5 loan comparison below currently features 18 brands. These are not all independent lenders as some firms control multiple companies such as CarCashPoint and Loans 2 Go. There are likely several other brands in operation today. We’ll keep adding them here, but those that are featured below are certainly taking the bulk of business. Some interesting statistics were released via a Freedom of Information request to the HM Courts and Tribunals Service that presented details on the number of Bill of Sale contracts registered with the court services in past years. The tallies were as follows: 36,829 (2011), 41,123 (2012) and 49,745 (2013). This data highlights growth, but not high volume. It is worth noting that other credit agreements may often be used, as they are exclusively in Scotland. When this report was released the Citizens Advice didn’t mix their words headlining a general industry consensus of: “Aggressive Practices and Absurd Charges”.

We Have Compared:
Cost (C): Total cost of a £1000 loan over a full year.
Operations (O): Listed opening days alongside times.
Store Network (SN): Branch tally quoted. Many firms just make home visits.
Sums (S): How much can be borrowed. Besides this the capping percentage is added (if known).
Terms (T): The selectable repayments represented in months.
Vehicle Age (VA): Industry standard is 10 years. (EXC) abbreviates if exceptions are made (usually for classic/vintage cars).
– Within the notes area NCC will be marked if no credit checks are taken.
– Within the same area SSL will be marked if encryption is used.

Notes:
– Listings are sorted alphabetically.
– Mobile reps usually cover England and Wales only. We’ll explore Northern Ireland and Scotland coverage further in due time.
– Most firms are members of the CCTA (Consumer Credit Trade Association). The reason for this is that the CCTA has a bills of sale code.
– Secondary lending products may be available for those with top credit.
– Vehicles most commonly used are cars, but you can usually get accepted with bikes, vans etc.
– Websites are almost always underdeveloped with small lead capture forms. Once a few details are entered they’ll give you a call. Ongoing customer support is also provided by phone. No one offers account servicing and SSL isn’t always used. Even though you are only typing in a few minor details you’d prefer to see added security.

Best Logbook Loans: Direct Lenders Compared:

AutoMoney (2009)
AutoMoney
C: £2425
O: Mon/Fri (9.30am/5.30pm)
SN: Visit or 30 branches
S: £100 to £5000
T: 18
VA: No limit

AutoPawn (2003)
AutoPawn
C: £950 | Prestige: £950
O: Mon/Fri. No times specified
SN: Visits
S: £500+
T: 18
VA: 10 (not confirmed). Prestige caters classic/vintage cars
* NCC. No upper sum noted. No discounts for Prestige

Auto Advance (2012)
Auto Advance
C: £960.08
O: Mon/Thu (8.30am/7pm), Fri (8.30am/5.30pm), Sat (9am/5.30pm)
SN: Visit or 14 branches
S: £500 to £25,000
T: 6 to 48
VA: 10 (EXC)
* NCC and SSL

CarCashPoint (2010)
CarCashPoint
C: £960 | Prestige and Vintage: £690.11
O: Mon/Fri (8am/6pm), Sat (9am/5pm), Sun (10am/4pm)
SN: Visits
S: £500 to £50,000 (75%)
T: 12 to 36
VA: 10
* NCC. Prestige and Vintage is designed for high-end motors

Easy Logbook Loans (2011)
Easy Logbook Loans
C: £700.04
O: Mon/Fri. No times specified
SN: Visits
S: £500 to £5000
T: 12 to 36
VA: 10 (EXC)
* NCC. Must be 21+ to qualify

GissaLoan (2005)
GissaLoan
C: £650 | Gold: £550
O: Mon/Sat (9am/5pm), Sun (10am/2pm)
SN: Visits
S: £500 to £25,000
T: 6 to 24
VA: 9 (EXC)
* Gold requires top credit. Poss GISSY2015 promo code at £30. Car must have been owned for 3+ months

Loans 2 Go (2002)
Loans 2 Go
C: £1200
O: Mon/Fri (9.30am/5.30pm), Sat (10am/3pm)
SN: Visit or 78 branches
S: £250 to £25,000
T: 12 to 60
VA: No limit

Logbook Calculator (2014)
Logbook Calculator
C: £960
O: Mon/Fri (8am/6pm), Sat (9am/5pm), Sun (10am/4pm)
SN: Visits
S: £200 to £50,000 (65%)
T: 12 to 36
VA: 10
* NCC. Part of CCP

Logbook Loans (1999)
Logbook Loans
C: £1200
O: Mon/Fri (9.30am/5.30pm), Sat (10am/3pm)
SN: Visit or 78 branches
S: £250 to £25,000
T: 12 to 60
VA: No limit
* SSL. Support hours differ: Mon/Fri (8am/8pm), Sat (9am/5pm). Part of L2Go

Logbook Loans NI (2007)
Logbook Loans NI
C: £960
O: Mon/Fri (8am/6pm), Sat (9am/5pm), Sun (10am/4pm)
SN: Visits (Northern Ireland only)
S: £500 to £50,000 (65%)
T: 6 to 60
VA: 10 (EXC)
* NCC. Part of CCP

Maxcroft (1976)
Maxcroft
C: £840
O: Mon/Thu (9am/6pm), Fri (9am/7pm), Sat (9am/4pm)
SN: See notes
S: £500 to £5000
T: 6 to 24
VA: No limit
* SSL, but must complete at Essex branch. Personal product available

Mobile Money (1998)
Mobile Money
C: £426.80
O: Mon/Fri (8.30am/6pm), Sat (9am/12.30pm)
SN: Visit or 40 branches
S: £500 to £25,000
T: 12 to 48
VA: 10 (EXC)
* SSL

MotoLoan (2013)
MotoLoan
C: £600
O: Mon/Sun. No times specified
SN: Visits
S: £500 to £50,000 (70%)
T: 6 to 60
VA: No limit
* SSL

RocketCash (2012)
Rocket Cash
C: £1200
O: Mon/Fri (9.30am/5.30pm), Sat (10am/2pm)
SN: Visit or 78 branches
S: £250 to £50,000
T: 12 to 48
VA: No limit
* Sat time is likely to be 3pm. Part of L2Go

The Car Loan Centre (2013)
The Car Loan Centre
C: £394.74
O: Mon/Sat (9am/5pm)
SN: See notes
S: £1000 to £50,000 (N and R)
T: 12 to 36
VA: ?
* Car finance also available. Must complete at Essex branch

V5 Loans (2008)
V5 Loans
C: £1429
O: Mon/Fri. No times specified
SN: Visits
S: £500 to £20,000
T: 24
VA: 12
* Credit checking likely (not confirmed)

V5 Solutions (2012)
V5 Solutions
C: £1282 | £1287 with Faster Payment
O: Mon/Sat. No times specified
SN: Visits
S: £300 to £5000
T: 18 to 36
VA: 8 to 10
* NCC is optional (grants more cash and savings). SSL, plus can pay online

Varooma (2011)
Varooma
C: £700.04 | Platinum: £430
O: Mon/Fri (8am/8pm), Sat (8am/4pm)
SN: Visits
S: £500 to £50,000 (70%)
T: 3 to 24
VA: No limit
* SSL. Platinum is for homeowners with good score

Comparison Insights:

Cheapest Logbook Loans (/£1000 for 1 Year):

1) The Car Loan Centre: £394.74 (0.108%)
2) Mobile Money: £426.80 (0.117%)
3) GissaLoan: £650 (0.178%)

1) Varooma Platinum: £430 (0.118%)
2) GissaLoan Gold: £550 (0.151%)
3) CarCashPoint Prestige and Vintage: £690.11 (0.189%)

Notes: Pricing daily rates shown to 3DP.

The first group shows standard products (bad/poor credit). The second is specialised products (good credit) that tend to have increased amounts, lower rates and they usually cover high-end motors. Strangely, this group is more expensive than the initial prices. This is of course due to the excellent deals available at The Car Loan Centre and Mobile Money. These are great prices to pay when you consider that the previous best sector charge over this period was £700.04. The GissaLoan promo is unconfirmed, but if valid it should be a £30 saving (not factored).

– Every company below is branded under a single spelling (to avoid high keyword density).

Experience: MobileMoney

MobileMoney was the first logbook lender established in August 1998. Their website later followed on the 19th October 1999. The reason why we have referenced this is that the LogbookLoans domain was registered a few days earlier on the 12th October 1999. There is some confusion when this other firm was established. Nine Regions Ltd arrived in 2001 and other related companies followed after this year. We are confident that they were the first owner of a website in this niche, but either way MobileMoney is the longest running V5 lender. Maxcroft was formed in 1976, but this was as a pawnbroker. Their V5 product is new.

Flexibility: LogbookLoansNI, MotoLoan, Varooma

LogbookLoansNI and MotoLoan both offer the widest spread of repayment terms of 6 to 60 months. Varooma’s choices are 3 to 24 months. This 3 month starting repayment is notable since it is advised to keep the terms low in this sector due to the high costs. Most companies of course allow early settlements to be made, but this isn’t easy to do since settlements must be completely arranged by phone due to the lack of account servicing.

High Street Network: Loans2Go, LogbookLoans, RocketCash

Loans2Go boasts the largest network of 78 branches across the UK with these other brands of course now being part of the same group. MobileMoney has 40 shops, AutoAdvance has 24 and a further 10 through CashandChequeExpress. Then you have AutoMoney who have 30 shops. A store presence is important in this sector, as it is in banking. If there is one in your local town then the payout will be quicker and ongoing customer support can be dealt with face-to-face. It is also reassuring that you are dealing with an established company that will likely be dealing with V5 contracts more frequently than their rivals. On the flipside, some people may of course prefer to have mobile reps coming to them.

Loans on Sunday: CarCashPoint, GissaLoan, LogbookCalculator, LogbookLoansNI, MotoLoan

There are several options for logbook loans on Sunday. Agents will of course be sent out on these days and so it would help if you are in a suitable location and that you apply early. CarCashPoint heads the longest times of 10am to 4pm. These matched hours are speculated for their sister-companies (LogbookCalculator and LogbookLoansNI). It is worth stating that CarCashPoint operates over the weekend for sales only and so customer support by phone would have to wait until the Monday.

Sums (Smallest): AutoMoney

AutoMoney offers the smallest borrowing sums. They start from just £100.

Sums (Largest When New): TheCarLoanCentre

Several companies head a top £50,000 loan sum, but The Car Loan Centre is the most notable firm since they cap at 90%. You can access £50k at CarCashPoint who cap at 75% whilst MotoLoan and Varooma cap at 70% of your vehicle’s current value.

Sums (Largest When Returning): CarCashPoint

How much you can receive is based on affordability and the state of your vehicle. There is never any such reference to variations in available cash sums for new and returning customers. There are however often payment thresholds in place. For instance, AutoAdvance and Loans2Go will pay up to £5000 by cash, but if you are borrowing more than this then they’ll each initiate a bank transfer.