Check this type of logbook loans before its too late. You should never buy a car that doesnt have a log book as this could be a sign the owner has taken out a logbook loan on the vehicle, borrowing money against the value of the car. Lost my logbook v62 form sell or apply for log book v5c. All i want to do is sell the car then pay back what is left on the loan and use the rest of the funds to purchase a different car. You can check what to do if coronavirus affects your work, benefits or travel. This might seem like a long time ago, but most people wont have bought their next car since 2014. I bought a car that was possibly written off where do i. You hand over ownership of the vehicle to the logbook loan company until the. You can sell or scrap your car even if you dont have the v5c. Ive gone and paid for a car and im now being told its not mine. You the borrower are protected with a hire purchase agreement which is the legal way this day. So, before you can drive away the car youve just bought, you need to tax it. These are logbook loans alternatives that work quicker and fairer.
To get a new v5c in this instance, youll have to apply by post by sending off a v62 and the v5c2 thats the green new keeper slip. We filled out a form for a new logbook and i was told by the finance company that the car had been through a hpi check. Hi i was wondering where i stood with regards to selling my car whilst i have a log book loan. The lender gives up to 50% the market value of your car. So the log book loan firm needs to buy the car and then give it back using a hp agreement. The car wasnt his because the previous owner had taken out a logbook loan, which allows drivers to borrow money against the. This is where a borrower uses their vehicle as security against a loan and the lender retains the logbook or vehicle registration document. I have a loan with logbook loans which is secured against. Bought a car with log book loan attached to it page 1. Bought a car with no log book moneysavingexpert forum. Next in logbook loans tips series, here are our top tips for car maintenance many car owners have a guilty secret.
Meridian acceptances limited meridian acceptances specialises in accepting car logbooks as collateral against loans borrowed from them. Car cash point logbook loan release cash from your. You surrender your vehicle logbook the cars registration document to the lender as. How to sell a car without a v5c logbook 2020 update. If youre buying from a dealer, they will be able to sort that for you. After 5 months of owning the car when i came to sell it turns out the car was an insurance write off. Ive tried to crunch the numbers on different leasing options and once you factor in fbt and expenses of the lease etc it seems like just taking a loan and claiming kms makes more financial sense. Ive just received a letter stating that the secondhand car ive just purchased is, in fact. Fca needs to take action on logbook loans urgently debt. To use your car logbook to receive a loan from mombo investment, call.
With a logbook loan, the lender not a wellknown high street bank, by the way, but a lender you will have never heard. Dvla advises motorists not to buy a vehicle if it doesnt have a v5c logbook. I have never missed a payment or been late on one with them. A third reason for not buying a car that doesnt have a v5c is that it might have had a logbook loan taken out on it. One of the growing types of finance in the uk is the logbook loan. Legally, the loan company can seize the car if the loan hasnt been paid off, unless you agree to pay the remaining loan yourself. Three golden rules for logbbok loans 1no matter how desperate you are to purchase a car, or raise cash, never consider this type of finance. He stated that he had paid it off and i made private payments to him. Ive also found out that the car was purchased by the. When you take out a logbook loan, youll usually be asked to hand over your vehicles logbook or. This type of loan is secured against a vehicle, normally a car, where the.
If this is the case and the original owner doesnt repay the. The logbook loan lender is given ownership of your car until you fully pay back the loan, although the lender owns the vehicle, you can. I have recently tried to sell my car, and discovered that finance still exists on the vehicle. Youll have to sign a controlled goods agreement and the bailiff can come back and take the goods if you dont pay. If your sure that everything is kosha you need to go to your local taxing office,they will advise you of the procedure and sort out your tax,hope this is of some help. Find out your rights if youve bought a used car and something has gone wrong. Third parties buying vehicles with a logbook loan attached. However, soon after purchasing the vehicle and having the work done, he received a knock on the door from a logbook loan lender with a. A logbook loan is a loan secured against any vehicle, for example getting a loan against your car.
Basically, ive seen a car, and coming to sell, the seller couldnt find there logbook. Logbook loans involve borrowing money using your car as security. This may be a lot because an unpaid loan can gather additional charges. Online application, instant decision, quick payout. This is a real risk when purchasing a secondhand vehicle, so using a car finance checker to look into its history is an important action to take. If you are considering buying a car it is a good idea to carry out an hpi check to analyse. Everything is done online, even the car inspection through a video call. The reason they are called logbook loans is that the logbook your vehicle registration certificate, also known as your v5 is taken by the lender for duration of the loan term, temporarily resulting in the lender owning your vehicle.
This is a very disappointing move, the bill would have had allparty support. If youve bought a car from someone who still owes money on a logbook loan. The car is not on finance, the owner has used the car to take out a loan with one of these log book loan companys, there is a lot of info on these guys online, they seem to be similar to clampers. Fca needs to take action on logbook loans urgently. No log book or tax on car, help needed digital spy. Six weeks later finance company contacted me and informed me that the car has an hp on it. Logbook loans let people borrow money against their car. The problem with buying a car with no logbook is that the person whos name is on the log book is still,legally,the true owner. Using car for business and personal use tesla motors club. The terms and conditions of a logbook loan can vary a lot between providers, check before signing any agreement, including the lenders rights in terms of repossession.
If your cars v5c logbook document has been lost, damaged or destroyed, theres a straightforward process for getting a new one. Fightback forums log book loans want to take my car. Logbook loans apply for cash loans secured against car. I therefore acquired good title as i bought it in good faith with no knowledge of the loan shark finance on the car hire purchase act 1964. When i bought the car, it was from a friend who had bought the car via pcp finance. A v5c or car log book is very important if you ever sell your car, or if youre buying a used car. They dont generally share it with other car owners because they fear being judged or criticised or perhaps even ridiculed. The vehicle owner will be asked to produce the logbook v5 to prove they are the registered keeper of the vehicle. One in four has outstanding finance and you can be liable. This method will calculate the vat correctly if you are invoice accounting for vat hmrc also say that if youre buying an asset on hire purchase, even if youre normally cash accounting for vat, you should account for vat on the invoice basis when you buy or sell goods using lease purchase, hire purchase, conditional sale or credit sale. My wife and i recently purchased a car unknowing to us it was on hpi alert for what is known as a logbook loan.
If you find out your car is under a logbook loan, you must tell your insurer. This is when the car owner uses the value of the motor to secure a loan. Logbook loans are loans secured against your vehicle. As i was the registered keeper but not the owner i had the logbook v5 document and later used it to take a loan out with the car as security. Once you have purchased the car and the logbook is recorded in your name you can if you want us the value of your car to borrow money, this is called a logbook loan, you keep using your car, the logbook lender does not take your car away whilst you have the loan and each month you make a repayment to pay off the loan over a period of months or. Also be careful how much it is to register the car. In it, he done a piece on cars being bought and then repossesed because the previous owner had a loan on the log bookcar and didnt pay the loan back so the new owner had the car taken off them as a result by bailifs or debt collectors. Interested to know how you bought it if you dont mind sharing. Logbook loans dont just pose a risk to the customers who take them out. You may have a legal right to a repair, the cost of a repair, or some or all of your money back. Once a vehicle has been bought with a logbook loan, the vehicle doesnt belong to the owner until the final payment has been made. People who buy secondhand cars are finding themselves liable for debts taken out by the previous owners, without their knowledge. I bought a car and decided to use my car check to find out its history, they sent me a incorrect report which came back all clear. It later transpired that the car had had three previous owners, one of whom had taken out a logbook loan on which he had defaulted.
How do i get the police to remove a car from the stolen. But we also get complaints from consumers who are being chased for payment of a loan because they bought a car with someone elses logbook. Logbook loan bailiffs please someone help im desperate. How do i transfer ownership and tax for a used car ive. Yesterday the government announced that it was dropping the proposed new logbook loan legislation. I have invested money in the car to sort mechanical problems. I came to an agreement with logbook loans to buy back the car from them for 1500. Its a quick and simple way to withdraw cash from a vehicle, without a formal credit check. This protects them from loosing the car and protects you from buying a car that the punter doesnt own. Upon relocating abroad, finding out that he hadnt cleared his finance has caused issues. In return for the money, they give the loan provider the log book of their car. If you have taken out a logbook loan and do want to sell your car, then youll need to ensure it covers the cost of your original loan.
If youre dealing with an ongoing or upcoming court case, this is the place to get support. I bought the car outright in cash legally through a used car dealer with the supporting documents. Never be caught out by a logbook loan again the new rules to. I bought a car through ebay and paid cash to the seller a year ago. The problem i have is that a logbook loan was taken out on the car so im unsure as to whether the consumer credit act still applies. Back in february, i bought a car it was a private sale found through autotrader. There was also something about a bill of sale was mentioned in the report but i didnt get the. The new owner retains the green section 6 until their new logbook arrives. However, if the debt isnt paid, its the car thats repossessed no matter who owns it at the time. I have been made unemloyed and cannot afford the weekly payments. Paul says a few weeks after buying the car a logbook loan company got in touch. The man who sold me the car had used the car as security for a 6k loan on 11908 ie the day before i collected the car. What happens if a car ive bought still has a logbook loan on it.
A logbook loan is secured on a vehicle, which means the lender can. Although some firms will only lend up to half of your cars value. As it appaears the loan against the car was taken out in january and we. Advice needed, taken a car with logbook loan outstanding sign in to follow this. Hi i bought a car about two months ago and have still not recieved the log book in order to tax the car. Advice needed, taken a car with logbook loan outstanding. Steer clear of borrowing against your car money the.
I have had to insure the car for obvious reasons and the car has been stuck on the drive for the last seven weeks so i have lost nearly two months insurance, and extra travelling costs. Without a logbook, the buyer will need to complete the dvla v62 form and apply for a logbook as the new ownerkeeper. Ive heard one of the worst finical decisions you can make as a young adult is purchasing a new car. The principle of a logbook loan is that of a secured shortterm loan with your car as security so the lender doesnt have to conduct those pesky credit checks to see if the borrower is likely to ever repay the loan. The loan had company finally traced the car and had it. The most common way is to leave them with you so you can keep using them, as long as you make agreed payments towards the debt. When the company went to change the logbook online, the system wouldnt work. Citizens advice warning over legal logbook loans bbc. For legal reasons, please dont post newsrelated topics classed as subjudice and, when posting, bear in. Click the next link if you want to sell your car online. I got in touch with the seller and he said he was going to pay it off. Remove your goods straight away and sell them theyll often threaten this, but the. What you can do if you have a repayment problem,and what you can do if you have unknowingly bought a car with a logbook loan attached. I bought a car through ebay and paid cash to the seller a year.909 175 729 1240 1222 65 665 929 1501 263 1355 629 45 809 280 183 1312 42 407 452 810 588 1322 1393 99 808 385 376 1056 103