Logbook Loan

A type of secured loan where your vehicle (car, van, or motorbike) is used as security. You temporarily transfer ownership of the vehicle's logbook (V5C) to the lender while retaining use of the vehicle. If you miss payments the lender can repossess and sell your vehicle without needing a court order. Logbook loans are typically high-cost and carry significant risk.

A borrower uses their car (valued at £4,000) as security for a £1,500 logbook loan at a high APR. Missing payments risks losing the car entirely.

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