Using Your Car to Get the Best V5 Loan

If you have an outstanding bill that needs to be paid and no cash at the moment, I might have a very good answer to your problem. It is called a V5 loan.

What's a logbook or V5 loan?

A logbook or V5 loan is a type of secure short-term loan that allows you to borrow any amount of money (in the region of 500-50,000 UK pounds), for any purpose, using your vehicle as a collateral.

What you need in order to get one of these?

First, make sure that you find a good logbook loan lender. The best place to look for them is, of course, the 'net, so just browse a few websites and you should be able to find a couple of very good agencies in your area.

How can you get a free quote for this loan?

Because getting a loan from a bank is almost impossible for the majority of us, many people are turning to alternative, quicker solutions. Just like the V5 loan. Getting a quote and determining if you are eligible for one and how much money you can expect, is a very easy process and usually involves only filling in a short form on the lender's website.

How Does a V5 Loan Work (Step-by-Step)?

Getting a V5 loan to work for you is actually very easy if you just follow the following few steps:

  1. Fill out a form on the lender's website. There are no commitments here and no one will expect anything more from you. At this point, you are basically still “browsing your options”.
  2. Visit a couple of lenders you are interested in working with. You will need to bring the following documentation with you: V5 logbook, proof of your identity, proof of income and details of vehicle's insurance. The lending company agent should cover everything with you prior to you coming in, including informing you of any other documents that you need to bring. Be sure that you ask any questions that you need an answer to at this point, as they are here to answer it. They'll also make sure that you get a loan you can actually afford (based on the value of your vehicle and your income). And the best thing of all is that you can still drive your car.
  3. Once you get the money you needed, you can drive away in your car. The money in this case will be loaned on its V5 document and this will remain in the lender's possession as a security.

As you can see, getting a logbook or V5 loan is very easy if you know how. Hopefully, now you do.