How logbook loans work
A logbook loan is secured on a vehicle you own, using a legal document called a bill of sale. You keep driving the vehicle, but the lender owns it until the loan is repaid.
If you fall behind, the lender can repossess the vehicle without going to court. Logbook loans are regulated by the Financial Conduct Authority and usually have very high interest rates.
Worked example
Borrowing £2,000 at 60% a year over 18 months costs £171.09 a month, £3,079.66 in total, so over half the amount borrowed is paid again in interest.
Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
Consider alternatives first
Logbook loans are an expensive way to borrow. A credit union loan or free debt advice from MoneyHelper may be better options.
Inputs for the logbook loan calculator
Amount to borrow
The amount you want to borrow.
Interest rate (per year)
The annual interest rate on your loan. The rate shown is only an example, so enter the rate from your quote.
Term
How many months you'll repay over.
CALCULATOR QUESTIONS
Logbook loan calculator questions
What is a logbook loan?
A loan secured on your vehicle through a bill of sale, so the lender owns the vehicle until you repay.
Can they take my car?
Yes. If you fall behind, the lender can repossess the vehicle without a court order.
Why are logbook loans expensive?
They're usually high-cost lending with interest rates far above mainstream loans.
Where can I get free help with debt?
MoneyHelper can point you to free, confidential debt advice.