Loans from £500 - £100KNo logbook or credit check requiredCash in 1 hourNo set up feesSettle early penalty free
Prefer to speak with someone? CALL 0333 577 5000
Representative APR 204.2%
If you borrow £1,000 over 36 months at a flat rate of 84% per annum [fixed] with a Representative 204.2% APR you will make 36 monthly payments of £97.98, making a total amount repayable of £3,690.00 including £30.00 document fee and £50 Option To Purchase fee. The total charge for credit is £2.690.00. Your car is at risk if you fail to keep up repayments.
Loan repayment length from 18 to 60 months. The maximum APR is 389.1%.
The loan on your car will be subject to affordability, suitability and the provision of a final assessment of income and expenditure.
We only use 'Hire Purchase' agreements which are regulated under current consumer law
Regulated by the Financial Conduct Authority and a proud member of the Consumer Credit Trade Association
As an alternative to logbook loans, you retain your logbook and spare key for the duration of the loan period.
No formal credit required so the loan application remains private with no effect to your credit rating
Complete the loan on your car with an E-Signature online and get your cash fast!
We are committed to treating you and every customer fairly, so all our loans are honest, transparent and fair.
Interest is recalculated on the revised balance
Settle the loan at any time, 100% penalty free
Find a lower price from any other lender and we will beat it by 10%
When you're searching online for 'loans on your car' you will stumble upon two main types: the logbook loan and a vehicle equity release loan.
But before you make your decision as to which one is right for you, it's important to understand what each of them means - alongside the benefits and risks that come with them.
Bills of Sale have been around for over 100 years. It is a type of loan that’s secured against your vehicle, it’s a popular method of borrowing money by using your vehicle as security. Frequently sold through lenders that market them as logbook loans, they have a substantial hold within the market sector, though they offer limited consumer protection.
Using the car whilst you repay the loan, it’s secured using two documents the ‘Bill of Sale’ and a ‘Consumer Credit agreement’. Although you can still use your car, you often have to give the lender your spare key and surrender your V5C logbook.
Most significant is the fact that the car will only return to your possession after the last payment is settled. There are many limits that come with this type of loan (some of which we will discuss in the table below) – including the fact that the lender can repossess the vehicle at any point of the process if you’ve missed two payments in a row.
After seeing the limitations that come with logbook loans, many are turning to Vehicle Equity Release as a safer and more efficient alternative of borrowing money. For those that don’t know, Vehicle Equity Release is a type of car book loan that can be used to withdraw cash from the value of your vehicle. This secures the car owner with a regulated ‘Hire of Purchase agreement’. Allowing you to borrow up to 70% of the trade value, there is no penalty if you decide to settle earlier.
Unlike V5 loans, with Vehicle Equity Release, you keep your vehicle, without having to hand over the keys or your logbook. A more flexible option, the process is far more streamlined than if you were applying for a logbook loan.
| Features | Logbook Loan | Vehicle Equity Release |
|---|---|---|
| Credit Agreement | Bill of Sale and Consumer Credit Agreement - offering little protection as the Law Commission recommended that the Bill of Sales acts should be repealed in their entirety. | Hire Purchase Agreement - this is regulated type of credit agreement offers a higher level of protection under legislation. |
| Credit Check Required? | Yes - which can impact your credit history in the long term. | There are no credit check loans. |
| Speed of Completion | A slow process, 1 day at least, as multiple documents and loan agreements must be signed – as well as having to be witnessed by a third-party individual. | VER contracts are issued efficiently and within 60 mins online. Customers can sign these via eSignature and a payment can be made within as little as 1 hour once all of the documents have been received. The fact that they are same day loans makes it a very popular option with people wanting a quick solution. |
| Price | APR for logbook loans range from 200% to 500% depending on the lender you borrow from. | Representative APR for Vehicle Equity Release loans is a lot lower – for example, LoanOnYourCar.com offers an APR of 204.2% which is a lot less than our competitors. |
| Extra Fees and Charges | Logbook loans often require set-up fees or penalties if you miss a payment. As the contracts are a lot more rigorous, you might not be able to cancel the loan within a set period of time. If your car is not worth the amount you owe them (after you’ve missed a payment) the lender might take you to court. | VERs do not require any agent visit fees, and do not have any penalty charges or settling early fees. If you want to change the amount that you wish to pay so that you can settle the debt and recover any outstanding amount quicker, you can do this at any time throughout the process. These cheap personal loans make it a more viable option for those with all budgets. |
It’s clear that when you research logbook loans, companies that specialise in them will have a lot of information available, whilst highlighting the benefits that come with them. And although there are of course, some benefits, from the above table, it’s clear to see that Vehicle Equity Release is a lot better option overall.
Logbook loans carry so many risks with them; and despite them being very tempting – especially in a financially challenging time, they can leave you facing large amounts of debt in the long term. Taking a hit on your credit score, putting your car and your overall finances at risk. Don’t put yourself in that vulnerable position – opt for a vehicle loan that gives you flexibility, low-interest rates and that sits within a timeframe that suits you – not the company.
With every financial decision you make in life, it’s important that you take the time to research different options before diving into either one.
You need to make sure that your finances are in check so that you can make repayments and that you’re happy with the interest rates.
Before taking on a loan, it’s advisable to look at these interest rates and calculate the exact amount that you will have to repay by the end of the repayment period – this way you can ensure that you have the correct amount of money that you need.
In the UK, you might be surprised to know that the logbook loans sector is £60 million. Amounting to 20,000 Bills of Sale, this showcases the impact that car logbook loans have had. With a statistic that’s ever-growing, it’s clear that throughout the next few years, we will see the numbers continue to rise. However, the rise in Vehicle Equity Release will also make an impact within the sector - as so many people are now turning to it.
From the above table, it may become clear whether a logbook loan is right for you. And although it primarily is the more advertised type of loan, it’s essential that you are aware of the risks and limitations that comes with them.
For example, if you borrow £1,500 and paid it over 78 weeks (at £33 a week), you would have to repay a total of £4,250. This incredible figure showcases the huge amount of interest that a logbook loan can come with.
As aforementioned, a vehicle equity release loan can be issued online within one hour of the documents being received by the lender. Although you can find loans on cars online, the process of which you apply for a log book loan is far more complex and lengthier than that of the 21st Century alternative.
With the ability to sign the documents for a VER electronically, you will be able to receive a payment quicker – meaning that you can have the cash in your account within a time frame that suits you. This is ideal if you need the money the same day for an emergency.
APR (or Annual Percentage Rate) might seem like a foreign concept for most borrowers. A concept that’s harnessed by lenders, it measures the interest rate (alongside any other fees) against loans, hire purchase agreements and other financial products. Representing the amount of interest that you have to pay either monthly or annually, it’s calculated by using a formula that was created by the Consumer Credit Act of 1974.
When looking at loans, it’s vital that you take notice of the APR rate - comparing the total amount that you will have to pay back at the end of the process. At LoanOnYourCar, our APR is 204.2% – in comparison to the APR of logbook loans which can be up to 500%.
Alternatively, you might notice that a loan comes with a flat rate of interest. To put this simply, a flat rate is the percentage of the interest which is charged on the loan amount taking into every year that you’ve had it for. Charged on the original amount of money that you borrowed from the lender, it’s significantly less than APR.
 |  |  | |
|---|---|---|---|
| APR | 204.2% | 209.42% | 190.30% |
| Logbook and Spare Keys | We don't require your V5C logbook or your spare key. | They will hold onto your V5C logbook and spare key. | They will hold onto your V5C logbook. |
| Signatures | E-signature Documents issued online and signed electronically expediting payment within 1 hour of receipt of contracts. | Physical Signature Documents have to be wet signed and witnessed by a third party. | Physical Signature Documents have to be wet signed and witnessed by a third party. |
| Fees and Charges | No early exit charges Flexible repayment up to 5 years with Pay as you go interest. | Early repayment fees apply Over-payments are not allowed. | No early exit charges Over-payments are allowed. |
| Lending Amount | Up to £100k | Up to £50k | Up to £100k |
Designed to assist those that have an outstanding loan or finance with their car lender (alongside logbook loans), it’s a quick, efficient and budget-friendly alternative that will help you to save money in the long term.
Introducing you to better rates, we guarantee to never be beaten on price. If you do find a lower price elsewhere, however, we will beat it by 10% – just one of the reasons so many switch to use our services.
To find out more about our Switch and Save Program, call us today on 0333 577 5000 and we will give you a bespoke offer loan. Alternatively, you can complete our easy to use application online.
We’re proud to say that our owners have a combined experience of over 30 years of experience within the finance and consumer credit industry. Using our expertise and skills at every turn, we want our customers to have the best possible experience with us. Providing them with affordable loans with pay as you go interest and no fees if you want to settle early, we’re your first port of call for Vehicle Equity Release Loans.
Authorised and regulated by the FCA (Financial Conduct Authority) and CCTA (Consumer Credit Trade Association), we are constantly striving to improve our services so that they are the best within the industry. And if you don’t believe us, our Trustpilot reviews speak for themselves. With 5-Star glowing reviews across the board, we know what it takes to create an exceptional service and product.
At LoanOnYourCar, we want to make the process as straightforward as possible so there is no confusion. After applying on our website (all you have to do is enter your car registration) you will get a loan offer through instantly. Alternatively, you can speak to one of our customer advisors by either calling us on 0333 577 5000 or by emailing us at sales@loanonyourcar.com.
From there, once the quotation has been accepted, we are able to complete the agreements quickly and efficiently online before setting a date for an appointment. During this appointment, one of our field agents will visit you to collect information about your car.
Within 1 hour of the visit, the loan money will be transferred to your account. A simple process, you will have the money that you need in no time at all with a competitive interest rate.
You can find out more about the process and the simplicity of applying for a
vehicle equity release loan on our
how a loan against your car works section.
We are a Trustpilot 5 star lender, we believe every loan matters
Regulated by the Financial Conduct Authority
