Logbook loans come with their own vocabulary, such as Bills of Sale, V5C documents and settlement rebates, which can make a simple question feel complicated. This guide cuts through that with direct answers to the questions borrowers ask V5 Solutions most often.
We have grouped them by theme so you can jump to what matters to you. For a step-by-step overview, see how logbook loans work.
About the Loan Itself
How is a logbook loan different from a personal loan?
A personal loan is usually unsecured. A logbook loan is secured against your vehicle, which means the lender has a legal interest in it until you finish repaying. That security allows lenders to consider people who might not qualify for unsecured credit, but it also means more is at stake if you fall behind.
What is a Bill of Sale?
It is the legal document that secures the loan on your vehicle in England and Wales. It transfers ownership to the lender for the life of the loan while you keep possession and carry on using the vehicle.
What can I borrow?
Loans run from £1,000 to £50,000, repaid over 18 to 60 months. The figure offered reflects both your vehicle's value and an assessment of what you can afford.
How does it work in Scotland?
Scottish law does not use Bills of Sale. Customers in Scotland, and some elsewhere in the UK, sign a Hire Purchase agreement online instead.
Who Can Apply
Do I need a good credit score?
Not necessarily. Applicants with bad credit are considered, because the decision rests on vehicle value and affordability rather than credit score alone. Every application is assessed individually, so approval is never automatic.
What does my vehicle need to meet?
It should be a car, van or motorbike that you own, usually registered in your name, with no finance still owed on it.
The Application and Checks
Is there a credit search?
Your initial quote is based on a soft search. It is tailored to you and leaves no mark on your credit score.
Why does the underwriter want my bank statements?
Responsible lenders must check that repayments are affordable. Your underwriter looks at your statements and phones you to discuss your circumstances before a decision is made.
What happens at the signing visit?
For most loans, a signing agent meets you, typically within three working hours, to witness you signing the Bill of Sale and to photograph you with your vehicle.
When are funds released?
In most cases the money reaches your account by bank transfer within 24 working hours of your application.
Your Vehicle During the Loan
Will the lender hold onto my logbook or keys?
No. V5 Solutions never takes your V5C logbook or spare key. The vehicle stays with you and you use it as you normally would.
What if I miss a repayment?
Contact us as soon as you can. Falling behind can lead to extra charges, damage to your credit file and, ultimately, the loss of your vehicle. Talking to us early gives you the most options, and free advice is available from National Debtline and Citizens Advice.
Repaying and Settling
How are repayments collected?
By recurring debit card payment, weekly or monthly. Interest is fixed at signing, so you always know what each payment will be.
Can I clear the loan early or add to it?
Early settlement is available at any time and comes with a rebate on interest. A top-up may be possible if you are up to date with payments and past the first six months, subject to your circumstances. Once the loan is fully repaid, ownership returns to you.
Before applying, read our article on what to think about before this kind of borrowing. It is a costly form of borrowing, so compare alternatives and only borrow what you can repay. Details of our loans, including the representative example, are on our logbook loans page.
This article is general information, not financial advice. For free, impartial help with your own situation, visit MoneyHelper.
Your car may be repossessed if you do not keep up repayments on a loan secured against it.
