Auto Advance no longer provide logbook loans. If you are an existing customer, we are still here to assist you. It is important that you continue to make your repayments as normal, or if you are experiencing financial difficulties please contact us.
Information on this page may be out of date, please contact us with any queries.
We've compiled the most frequently asked questions so you know exactly what to expect. Click or tap on a question below to reveal the answer. If you have any more questions, please email us on: service@autoadvance.co.uk
A logbook loan is when you hand over the logbook (V5 certificate) for your car in exchange for a predetermined amount of money that is repaid over an agreed period of time. Once the loan is repaid in full, your logbook is sent back via recorded delivery.
Your repayment is usually collected from your bank account weekly or monthly.
A Bill of Sale is the legal document which gives the lender security over your vehicle. This technically means they become the legal owner of the vehicle until the loan is fully paid back. However, during this period you are able to freely use your vehicle as long as payments are made. There is a risk of losing your vehicle if you fail to make payments, so before this happens contact your loan provider to find a solution with your financial circumstances.
You can receive your money within a few hours of your application as long as you submit all the right documents and agree to the terms offered to you. After you have signed the loan agreements and everything has been verified, a fast-track payment direct to your account will be made.
APR stands for Annual Percentage Rate. It is easy to get swept away in jargon, but it basically shows the amount of interest you will pay back over the period of your loan. A lower APR does mean a lower amount of interest paid back, but it does not mean you're getting a better deal. Some lenders may have hidden charges, broker deals or set-up fees which will cost you more!
Sometimes the lowest APR is not your best choice. See the Money Advice Service on the true cost of borrowing to learn more.
A logbook loan is cheaper than a payday loan because it is secured against the value of your car. Payday loans don't have any collateral, meaning interest and repayments are higher. Using your vehicle as security means a lower interest rate and lower repayments. Your vehicle is at risk of repossession if you do not keep up your agreed repayments. Representative APR 300.3%
A logbook loan uses your vehicle as security for the loan, even if you have poor credit. This means that the lender will hold on to your V5 document whilst allowing you to keep your car until your loan is fully settled. If you fail to make payments, your vehicle may be at risk of repossession.
In contrast, a guarantor loan is where you need to find and ask an eligible person you know to vouch for your ability to pay the loan and take on the responsibility to pay back the loan if you fail to do so. There is a strict criteria of who can be an eligible guarantor, and may be embarrassing asking someone to vouch for you because of bad credit. Even in the event where you can't make payment, it can damage your personal relationship with the guarantor you chose.
Take the stress out of your loan and let your car be your guarantor.
In order to secure a logbook loan and get cash, you need your car's V5 logbook, which must be made out in your name. You'll also need your insurance document, a recent bill to validate your address and some photographic ID such as a passport or driving license.
Providing you can show evidence that you have a regular income and can meet your repayments, being self-employed isn't a problem.
Unfortunately, your application is not usually accepted if your sole income is from benefits. However, you can still consider a joint loan application if someone else in the household has a working income.
Some providers allow you to switch your current logbook loan over to them.
Yes, as long as you meet other criteria. Lenders are usually happy to issue a loan against a van or other small commercial vehicles.
Your vehicle must be road legal at all times throughout the life of the loan. Lenders will carry out checks as part of the application process and it is your obligation under contract to maintain the vehicle's roadworthiness.
For more information please see the DVLA requirements.
Providers will offer a loan against a car providing it is in good working order and has a good value. Most lenders prefer to work with customers who have cars of less than 10 years old, but contact your provider to discuss your personal circumstances.
If you're close to making your final repayment, contact your lender to discuss your specific circumstances and see how they can help.
In order to apply for a logbook loan, the vehicle must be registered in your name on the V5 logbook.
You can fill out quick 5 minute applications online by first entering your vehicle registration and mileage. If your vehicle is suitable for a logbook loan, you just need to follow to prompts on screen.
Feel free to contact your lender if you are unsure about anything.
Yes. Responsible lenders take steps to ensure that their customers are creditworthy and that the repayments are affordable. Only apply for a loan if you're completely sure you can make regular payments on time whilst managing your other outgoings.
If you have a low credit score or previous county court judgments (CCJs) many providers will still consider you for a logbook loan, focussing on your current individual circumstances.
Ethical lenders need to confirm whether you can realistically afford the contractual repayments. If you have a poor credit score, bank statements are a great way of assessing your current individual circumstances. Generally, this means 60 days transaction history if you are in full-time or part-time employment and 90 days if you are self-employed.
By using secure online fast-track systems, all you have to do is login to your online banking and the system handles the rest. Your bank will automatically send read only information for review. Only the financial information required to assess if you are able to make repayments on your loan is seen, not any of your online credentials. By using fast-track systems you'll receive a decision quickly.
Alternatively, if you do not have an online banking account, you can also scan your most recent bank statements or take a clear photo using your mobile and securely upload the documents as part of your application. If you can use social media, you can easily use online services. However, as this is a manual process it can take slightly longer to get your decision.
Most providers do not need to contact your employer as part of the application process. However, they may ask you to provide details about your employment.
No, you can pick any convenient location you would prefer. Agents will meet you anywhere if they can safely view the car and sign the paperwork. Appointments have been made in supermarkets, hotels and petrol station car parks. You choose what is comfortable for you. Alternatively, you may be able to visit one of your provider's branches if there is one near you.
Your confidentiality is of paramount importance and lenders should never give or sell your details to anybody else without permission. Usually, lenders will not contact your employer and all information you give them will be treated in the strictest of confidence at all times.
No details on your V5 document are changed during the period of your loan. The logbook is simply kept and return it to you when the loan is settled in full.
Please see Who is the owner of the vehicle?
Technically, the Bill of Sale makes the lender the legal owners of your vehicle until the loan is fully repaid. This works just like a mortgage where you live in the house but the bank own the property until it has been paid off.
Please see our blog post explaining how your logbook is used.
You are still required to cover your vehicle with a valid insurance policy.
Please see What happens in an accident?
As part of the fixed sum loan agreement you must inform your insurance company that there is outstanding finance on the vehicle, they will also check this. If the car is deemed to be an insurance write off, they will pay the early settlement figure and you will receive the balance of any payout. No stress or worry, your loan will be settled by the insurance. That is why you must always keep insured to protect yourself. Remember you will still be liable for your loan even if the car has been damaged in an accident.
You can find information about your vehicle via HPI check or through the DVLA. HPI checks allow you to see if a vehicle has been stolen, or is part of a financing agreement. By searching for a model and registration on the DVLA's website, you can access other details about a vehicle's history. This includes tax status, date of manufacture and latest MOT.
Some providers may have hidden fees for administration or set-up. If you would like more information our friendly team would be happy to discuss this with you.
Normally, yes! Find out if your provider will charge you any early settlement, exit, or penalty fees.
Loan terms will depend on the amount borrowed and the repayment rate agreed. However, if you're struggling to meet your commitment, contact your lender as soon as possible so that they can try to find a way to help.
Your interest rate will depend on how much you borrow and how much the full value of the car is. The less money you borrow in relation to the car's value, the better rate offered to you. Any interest payable is calculated from the remainder of the money you owe, not from the initial loan value.
Yes, you can save more money in the long term by paying more than the agreed contractual payments.
The quicker you pay, the less interest you are charged. When you settle early you will receive a rebate of interest based on where you are in the course of the loan and how much you have paid to date. Remember some providers do not charge you fines or extra add-on charges for settling early.
Representative APR refers to the rate that at least 51% of people who are accepted for an Auto Advance Logbook Loan pay.
Representative Example
Total amount of credit: £1000
Monthly payment: £163.34
Fixed annual interest rate: 96.0%
Total amount repayable: £1960.08
Term: 12 months
Rep. APR 300.3%
Ethical lenders should treat customers fairly, so if you are having difficulty keeping up with repayments, especially if you're experiencing financial hardship, please contact them immediately. For help or advice, please also visit www.moneyadviceservice.org.uk
A logbook loan is secured against the value of your vehicle and, as such, if you fail to keep up the agreed repayments on your loan, it may be repossessed. Following the recovery and sale of the vehicle, the proceeds from the sale are used solely to settle your agreement and any incurred costs. You will receive any excess funds after your loan has been settled.
Information on this page may be out of date, please contact us with any queries.
Yes. We offer pawnbroking loans giving you access to funds without a lengthy application process or credit check.
For more information please see our pawnbroking page.
Pawnbroking your car is the same as pawnbroking any valuable item. We give a loan secured against the value of your vehicle whilst it is placed in storage during the term of the contract. When you agree to the terms of the loan, we pick up your vehicle, examine your documents and deliver it to one of our carefully selected storage locations. Once this is done your payment will be released. You are given the freedom and flexibility to decide how much or when you make your repayments during the term of the contract to settle your balance. Once your loan is settled, we can deliver the vehicle back to you or you can choose to recontract for more money. Whatever choice you make, your Dedicated Client Manager will provide you with all the information you need.
For more information please see our pawnbroking page or a guide on Pawnbroking from the Money Advice Service.
Pawnbroking loans do not require any intrusive credit checks as the loan is issued against the value of the asset, not the persons credit history.
For more information please check the National Pawnbrokers Association's code of conduct.
You have the freedom to choose when repayments are made within the 6 month contract period. One of the best things about an Auto Advance Pawnbroking Loan is that you are not tied down to a specific date or amount you have to pay on a regular basis. You decide when you want to settle. Some customers pay off the total loan at once and save on paying interest, whilst others split the cost in instalments. Whatever works for your budget, all that matters is that the loan is paid off within the agreed term of your contract.
All vehicles that we safely deliver into storage are treated with the utmost care. If your vehicle requires special attention let your Dedicated Client Manager know and we will try our best to accommodate your needs.
Please see Will my car be looked after?
Once your vehicle is delivered to one of our storage locations we will then release funds directly into to the bank account you have provided us with through Faster payment.
Depending on the location of where your vehicle is currently stored, either your Dedicated Client Manager or one of our 600 mobile agents will come to meet you in person, review your documents, and inspect the condition of your vehicle. Once you agree to the terms of the loan and the final value presented, your vehicle will be loaded onto a flatbed and safely delivered to one of our storage locations. When the term of your loan is over and if you choose not to recontract, your vehicle will be delivered back to you in the same way it was originally picked up.
We will look after your asset as if it were our own. With close to two decades in this field, we've grown to love cars as much as we love our customers. From the moment we pick up your vehicle, it will be securely lifted and transported to our storage locations. Once it arrives, you will receive a text confirming its delivery. By carefully selecting the storage locations we work with, we ensure a high standard of security and care for your asset. We can even arrange regular maintenance, dehumidified storage environments, dust covers, battery conditioners, and are open to providing any bespoke care your vehicle may require if you let your Dedicated Client Manager know.
To successfully apply for a pawnbroking loan we will require you to provide:
Without these we cannot progress your application for a pawnbroking loan against your car.
Please note that in some circumstances additional documentation may be required.