A logbook loan is secured against your vehicle, which means the lender can repossess it if you do not keep up repayments. They can be expensive and carry real risk.
We compare unsecured personal loans instead, so your car is not used as security. One soft search shows what a panel of FCA authorised lenders and brokers could offer.
How logbook loans work and the risks
With a logbook loan you hand over your vehicle’s documents as security. If you fall behind, the lender may take the car. Because of this risk, it is worth exploring unsecured options first.
- Your vehicle is used as security
- Missing payments can mean losing the car
- Costs are often high compared with unsecured loans
A safer alternative to check
An unsecured personal loan does not put your car at risk. You can check what you could borrow from £100 to £5,000 with a soft search, then decide if it suits you.
Why logbook loans can be costly
Logbook loans are secured against your vehicle and often carry a high APR. Because they are secured, the usual caps on high cost short term credit may not apply in the same way, and falling behind can mean losing your car. That combination is why it is worth exploring unsecured options first.
A safer, unsecured alternative
An unsecured personal loan is based on your affordability rather than an asset, so your vehicle is never at risk. You can check what you could borrow from £100 to £5,000 with a soft search that does not affect your credit score.
How to apply
Borrowing responsibly
Take a moment to check the repayments work within your budget before applying. What matters most is the total cost over the whole term rather than the monthly amount alone, so borrow only what you genuinely need.
Every lender on our panel is authorised by the Financial Conduct Authority, and high cost short term credit is subject to an FCA total cost cap, meaning you cannot repay more in interest and fees than the amount borrowed. If money is tight, free and impartial help is available from MoneyHelper.
Representative Example: £1,000 borrowed for 18 months. 17 monthly repayments at £87.22, final repayment of £87.70. Total amount repayable £1,570.44. Interest total £570.44. Annual interest rate 59.97% (fixed). Representative APR 79.5% (Variable). Any representative monthly repayment shown is for illustration only, based on our representative APR. Your actual repayments will be confirmed by the matching lender if your application is approved.