Many logbook lenders specify that your car should be less than ten years old to meet their criteria, but considering around one-third of the 34 million cars on Britain’s roads are older than this, 11.3 million owners aren’t eligible.
However, some lenders will offer loans on older vehicles by taking other factors into account, rather than focusing on just the age. They will consider your car’s market value, general condition, mileage and whether it’s particularly rare or collectible.
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Logbook Loans 247 can provide vintage cars logbook loans by taking into account all of these factors, as well as determining whether you can afford the repayments, something all responsible lenders must do.
The benefits of logbook loans for older cars include providing motorists with quick access to funds and flexible borrowing, even with poor credit. Once a vehicle is deemed eligible, the borrowing process can be as fast and convenient as it is for modern car owners.
Loans can be processed and approved on the same day, with the funds made available in as little as two hours, depending on customers’ requirements. Once the details are finalised and the paperwork signed, the money is transferred to the customer’s bank account within minutes.
Applying for classic cars logbook loans
This kind of borrowing can be useful for people who have been unable to access credit from a bank or other mainstream lender, or for those who need to borrow a larger amount quickly for an unexpected expense. Depending on your car, you may be able to borrow more than you could from other sources of short-term finance, such as a payday loan.
Another benefit of a classic car logbook loan is the repayment period, which can be between 18 and 36 months. The most popular repayment term is 18 months, but if you require a longer period, your individual circumstances can be assessed and a decision made after taking into account your ability to make the repayments.
The key to logbook loans is that the lender is given temporary ownership of the car for the duration of the repayments, but the customer is still allowed to drive it. Once the loan has been repaid in full, ownership is returned to the customer.
Why does a car’s age matter?
It follows that older cars are usually going to have more signs of wear and tear, especially if they have been driven regularly on public roads, so they are often worth less than newer cars. The age of the car is used to determine its market value today and how much money you can borrow secured on your vehicle.
Not all vintage cars are worth less than newer ones, however, as classic vehicles and rarer models that have been kept in mint condition may be worth more than you think. If it’s still in excellent condition, with few miles on the clock, it may still have a high trade value, which is often the case with classic and vintage sports cars.
The lender must ensure the amount you borrow is covered by your vehicle’s trade value, and also that you can afford to repay the loan. The provider will require the car to be taxed, insured and with an in-date MOT, unless it’s a true historic vehicle that’s exempt from the MOT test due to its age.
Condition of older cars
A logbook lender will expect older cars to be in an undamaged and reasonably good condition. Having a full service history can help to prove it has been well maintained and serviced to keep the engine and other parts in full working order.
Once a car is classed as vintage, it will probably have high mileage, so regular maintenance is crucial. Keep the service history, or receipts from garages for parts and work carried out, as this is proof you have looked after it. Without even a partial service history, the value of your car will be reduced.
Should I take out a logbook loan on an older car?
The main thing to consider is whether you can afford to make the repayments. The Financial Conduct Authority regulates the logbook loans industry, so lenders must be sure you can afford the repayments before agreeing on finance.
If you aren’t able to keep up with the credit agreement, the lender will work with you to try and determine a way forward, with selling your car to recoup the loan only undertaken as a final resort.
When applying for a loan, calculate the repayments carefully and consider whether you will genuinely be able to adhere to the credit agreement, or whether your financial situation is likely to change during the term of the loan. For example, if you’re due to retire soon, or expect to be made redundant, will you still be able to pay the finance off?
While it’s a misconception that you can’t get a logbook loan on a vehicle more than ten years old, it’s important to find the right lender, complete the application process honestly and work with the provider to ensure it’s right for you.
Please contact Logbook Loans 247 for further information if you’re thinking of applying for finance on your older car.
Warning: late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.
