How the loan amount is worked out
A logbook loan lets you borrow against a vehicle you own while you keep using it. This calculator takes the vehicle's value and the share of it a lender will lend. A £2,600 car at a 50% share could secure £1,300.00. The 50% is an example, not a standard: each lender sets its own share and values the vehicle itself, so enter your lender's figure and a realistic trade value.
You can still owe money on the car, and the estimate takes it off: it assumes the lender lends the share of value less what you owe, and it is not an offer from any lender.
What a logbook loan is
The FCA describes a logbook loan as a loan secured on a vehicle that you can continue to use. Ownership of the vehicle passes to the lender under a registered bill of sale, which conditionally transfers the legal ownership of the vehicle to the lender as security for the debt. The FCA says this does not apply to Scotland, that bills of sale convey fewer consumer protections than other forms of lending, and that logbook loans have high APRs, typically 400% or more, plus additional fees and charges (a 2015 research finding, last updated by the FCA in February 2023).
A published representative example
Cash Converters' Logbook Money publishes a representative example: £1,300 over 18 months at a fixed 120% a year, 442.66% APR, repaid in 77 weekly payments of £46.67 and a final payment of £46.41, £3,640 in all. This calculator treats the 120% as a flat rate charged on the amount borrowed for the whole term. The £2,600 car at 50% gives £1,300.00; over 78 weeks that is £46.67 a week, £3,640.00 to repay and an APR of 442.58%. It is a few hundredths of a percent below the published figure because the lender rounds each payment. You repay £2.80 for every £1 borrowed.
If you still owe money on the car, or the lender caps the loan
A £9,000 car with £2,000 owed, at a 60% share, gives £3,400.00. If your lender's maximum is lower than the share of value, type it in: a £30,000 car at 50% would support £15,000, but a £10,000 cap gives £10,000.00.
Think before you borrow
With the example inputs, a £4,000 car at 50% secures £2,000.00. At a flat 120% a year over 78 weeks you would repay £5,600.00, which is £3,600.00 more than you borrowed. If you cannot repay, the lender can take the car. Consider a credit union, or free debt advice, before taking a logbook loan.
To work out repayments from a rate, use the logbook loan calculator.
Use the right country page
A logbook loan is a UK product, available in England, Wales and Northern Ireland. In the US the equivalent is a title loan, repaid in a single payment after about 30 days.
For the US product, open the title loan value calculator.
Inputs for the logbook loan value calculator
Value of the vehicle
What the vehicle would sell for. A trade valuation is closer to what lenders use.
Still owed on the vehicle
Finance still owed on it. Most lenders want the vehicle owned outright, so enter zero if it is.
Most the lender will lend, as a share of value
Each lender decides this. 50% is one lender's example, not a standard.
Maximum loan the lender offers
A cap on the loan from your lender. Enter zero if you do not know one.
Flat interest rate per year
The yearly rate on your quote, charged on the amount borrowed for the whole term. 120% is one lender's example.
Term
The number of weekly payments. 78 weeks is 18 months.
CALCULATOR QUESTIONS
UK logbook loan value calculator questions
How much can I borrow on a logbook loan?
It depends on your car's value and the lender. At a 50% share a £2,600 car supports £1,300.00. The lender decides after valuing it.
What is the APR on a logbook loan?
The FCA says logbook loans typically have APRs of 400% or more. The example here gives 442.58%.
Can I take a logbook loan in Scotland?
No. The FCA says the bill of sale arrangement does not apply to Scotland.
Can I lose my car?
Yes. Ownership passes to the lender under a registered bill of sale and the lender can take the car if you do not repay.
What is a flat rate?
Interest is charged on the amount borrowed for the whole term, not on the falling balance, so the APR is much higher than the flat rate.