Should You Secure Your Logbook Loan on Your Vehicle?

If you’re a vehicle owner and you need quick cash, there’s a popular personal loan you can avail. Logbook loans, as the name implies, are loans secured on your vehicle. So long as you own a vehicle free of any financing plan, you can turn it into cash in as fast as within a day. But before you jump ahead and sign up for a loan deal, there are things to consider and key factors to keep in mind.

How much can you borrow?

With logbook loans, the loan offers are larger because of the security requirement. The maximum amount you can borrow will depend on your vehicle’s trade value. In most cases, you can borrow up to 70% of said value provided that the amount falls within the £500 to £50,000 range. Logbook loans therefore are ideal for a wide array of personal and financial needs from a minor expense to a major emergency.

How long do the repayment terms last?

Repayment terms for logbook loans start from 12 months up to 36 months or sometimes longer depending on the amount you wish to borrow. The larger loan amount you apply for, the more flexible repayment terms can be. The loan can be repaid either bi-weekly or monthly.

Who can apply for the loan?

Anyone who is a vehicle owner can avail a logbook loan deal. Even if you have a poor credit score, you’re still welcome to apply provided of course that you are of legal age and you’re a UK resident. There’s no credit check involved with logbook loans hence the high approval rate and faster processing.


What do you need to apply for a logbook loan?

For even faster processing, borrowers are required to produce a number of documents prior to making an application. Some of the required documents include the V5 document, Ministry Of Transport certificate as well as insurance details of your car. Also required for all applicants are basic requirements such as identification document, billing address and of course, proof of income. Make sure you have your recent pay slips handy to prove that you are financially capable to repay the loan.

The cost of a logbook loan

Logbook loans may be widely accessible in the UK but it’s also been receiving flak from financial experts because it’s a high-risk type of personal loan. Just take for instance the loan’s cost. Logbook loans come with steep interest rates. In fact, it’s imperative to note that the representative APR for the financial product is 400% on average. That’s a high cost to pay for a personal loan that’s secured on your vehicle.

Compared with traditional personal loans, logbook loans are definitely more expensive. But in exchange for the high cost is the promise of quick cash, which many borrowers consider the ultimate selling point especially for those with bad credit scores.


Should you apply for one?

If you can’t decide whether to take out a logbook loan or not, weighing the pros and cons of the financial product should help. If you have a poor credit score and it’s been preventing you from taking out a personal loan then a logbook loan makes a convenient alternative. Just remember that there are risks involved. The most important risk to take into consideration is the risk of vehicle repossession. Because your loan is secured against your car, you must accept the reality that you may lose your car in the process. But that doesn’t have to happen if you follow the simple rule of thumb to borrow only what you can afford.


How to Finance Your Car Purchase

If you’re planning to buy a new car, there are different ways to finance your purchase. To know which financing option is best for you, this quick guide should help you along. Just keep in mind that buying a new car is a major decision you need to carefully think through. There are different factors to consider but the most important of which is your financing deal. Here are available options you can look at now:

Buying upfront

Most people who are buying a new car usually do so with a financing plan but that doesn’t always have to be the case. If you have substantial savings that are earning stingy interest rates, you might want to consider using the money to buy your new car upfront. Rather than borrow money at higher interest rates, buying upfront will essentially save you more money in the long run. But keep in mind that this is ideal if you have enough savings left after the purchase. You can’t empty your bank accounts just so you can buy a new car.

Personal loan

If buying upfront is not possible, you can always apply for a personal loan from a bank, a highstreet lender or any finance provider available in the UK. With personal loans, the options are plentiful. There are hundreds of deals available and it’s up to you to pick a deal perfect for your financial circumstance. Just make sure that your loan is not secured on any asset particularly your home. With the right personal loan, you can cover the whole cost of the car. In exchange, you’ll be paying a monthly fee at an affordable fixed rate if you shop around.


Personal leasing

Personal leasing, on one hand, allows you to pay your dealer a fixed monthly amount but only for the use of a car, which already includes servicing and maintenance. This means that you’re not going to buy the car, just lease it for the duration you specified. There’s just one caveat. You must not exceed the specified mileage limit. Once the leasing agreement is up, you hand over the car back to the dealer. With this type of financing, the cost may be higher than if you purchase your own car. You’ll also have to pay the 3-month deposit rental. On the upside, you don’t have to worry about the car’s value depreciating with personal leasing.

Hire purchase (HP)

If you don’t have money to pay for the 10% deposit most dealers require, you can always consider financing your purchase through hire purchase. With hire purchase, you’ll pay a monthly installment speed over a 12 to 60-month repayment term. In most cases, you don’t have to worry about raising money to pay for the deposit. This type of financing is not only quick and easy to arrange but it also comes with flexible terms and the interest rates are quite competitive. On the downside, you won’t own the vehicle until it’s fully paid off.

Personal contract plan

Another type or variation of hire purchase is called a personal contract plan. With this type of financing, you won’t have to buy the car upfront. Instead you pay for the difference in sale price and the resale price back to the dealer. Advantages of this type of financing include lower monthly payments, low deposit requirement and flexible repayment terms. On the downside, you may end up paying more in the end than if you opt for hire purchase. You’ll have to consider mileage because it can affect the cost of the car.

Best Budget Cars for 2016 in the UK

Are you in the market for a new car and you’re looking for one that won’t break the bank? You’re in luck because you came to the right place. With a plethora of different car models hitting the market, choosing the best budget cars for 2016 may prove more difficult than ever. But not to worry because we’ve rounded out the best options you can look at today. Here 6 of the best cheap cars available in the UK today:

Skoda Citigo hatchback

With a price range between £8,275 and £11,120, the Skoda Citigo hatchback tops our list. Mechanically speaking, the car is similar to the SEAT Mii but this one is much cheaper hence highly recommended for budget-conscious car buyers. With its cheap price, you’d think there are compromises with the car but that’s where you are wrong. With 60mpg fuel economy, good safety rating and 251-litre, the vehicle offers great value for your money.

Renault Twingo hatchback

If you want a budget car that’s something different from the typical budget-friendly option, the Renault Twingo hatchback is worth looking at. With price tags between £9,495 and £13,445, the vehicle is ideal for first time buyers or those on a budget. Among the vehicle’s selling points include its engine, which is fitted in the back, and the tight turning circle. In addition, the vehicle also allows an array of customization options.

Peugeot 108 hatchback

Another car that won’t break the bank is the Peugeot 108 hatchback, which offers tow engine options. You can choose between the 1.0 and 1.2-litre petrol options, which are both exempted from road tax because of the low CO2 emissions. Though closely similar to vehicles such as the Skoda Citigo, the Peugeot 108 is an interesting choice if you’re after a smart and appealing style at price range between £8,345 and £12,895.


Hyundai i10 hatchback

One of the best budget cars you’ll find in the market today is the Hyundai i10 hatchback Customers have been raving about it and for good reason too. At price range between £8,995 and £13,045, the vehicle has key features that make it a worthy buy. Among its key selling points include its cruise control, electric windows and heated door mirrors. Overall, the car promise efficiency at a cost you can afford. Whichever model you choose, you can count on the Hyundai i10 to give you the best value for your money.

Kia Picanto hatchback

Just in case you’re not sold out to buy the Hyundai i10, you can always consider the Kia Picanto hatchback. The price can be relatively cheaper than the Hyundai i10 but the mechanical features are pretty similar for both vehicles. While the Picanto is relatively older, it has key selling points that might convince you to go ahead and purchase the car. It features a spacious back passenger plus it comes with a seven year or 100,000-mile warranty. On the downside, the car can be noisy particularly the interior. Keep that in mind before you finalize your decision.

SEAT Mii hatchback

SEA Mii hatchback is mechanically similar to the Skoda Citigo. Between the two budget vehicles, the choice will basically boil down to your preference in terms of looks and style. If your additional savings is a deciding factor for you then opting for the SEAT Mii makes perfect sense. The vehicle is relatively cheaper than the Skoda Citigo at price range between £8.440 and £11,995. You’ll enjoy key features such as low running cost and an array of special editions.

Things to Consider When Buying a Car this 2016

Whether you’re buying brand new or a second-hand car this 2016, there are important things to consider if you want to nail this major financial investment. Your vehicle is probably the most important investment you’ll make aside from your house. It only makes perfect sense to carefully think through your purchase before singing any deal with your dealer. Here are a few things you should know about if you’re looking for a sedan to buy.


If the best sedan is what you’re looking for then the options are plentiful in the market. A typical sedan features four doors and they come in different types based on size, which include a subcompact, compact, midsize and full size sedans. Make sure that the car you have in mind is available in the market so the buying process is quick and efficient.

Price tag

The price tag is another key consideration to keep in mind. Whether you’re buying it upfront or you’re applying for a financing plan, you should know how much exactly you can afford to allot for your car purchase. Of all the sedan types, subcompact and compact sedans are the least expensive. Economy sedans, in particular, are ideal for budget-conscious buyers.


When comparing sedans to buy, one of the most important car specs to consider is the car’s engine or fuel economy. In the category of sedans, there are plenty of engine options from three to four, five and even 12-cylinder engines. There are also cars with hybrid engines and some options are all electric. The choice will depend on your needs and how you intend to use your vehicle. If you’re clueless about engines, a little research can go a long way.


No matter your budget or which type of sedan you go for, safety should be a priority. Each car has different safety features. Some are more specific for families and others are ideal for a typical car driver. If you’re buying a car for family use, make sure to look for a sedan with features such as antilock brakes, full-lengthy side curtain airbags, stability control, etc.

Passenger Capacity

A typical sedan can carry four adults comfortably. If you’re buying a car for family use, you might want to opt for the mid-size or full-size sedans, which can carry up to five passengers.

Cargo Capacity

Another important factor to take into consideration is your sedan’s cargo capacity. Cargo capacity refers to the amount of cargo your sedan’s trunk can carry. Naturally, smaller sedans have smaller capacity while larger sedans can carry more. If you’re planning to carry bulky items on your sedan, getting one with folding rear seats makes sense. If cargo space is particularly a priority for you, hatchbacks and full size sedans are perfect.