Frequently Asked Questions

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

About Logbook Loans

What is a logbook loan?

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.

How much can Auto Advance lend me?

We’re happy to lend small amounts or larger sums up to 80% of the value of your vehicle. But this will all depend on how much you can afford to pay back every month. You can also get a top-up loan further down the line.

How do I make repayments?

Your repayment is collected from your bank account weekly or monthly. You can also pay by cash or cheque at one of our branches.

What is a Bill of Sale?

A Bill of Sale is the legal document which gives us security over your vehicle. This technically means we 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, but before this happens we will try to find a solution with your financial circumstances.

When do I get my money?

You can receive your money within several hours of your application as long as you submit all the right documents and agree to the terms we offer you. After you have signed the loan agreements and we have verified everything, we will make a fast-track payment direct to your account, or you can visit one of our stores to be paid in cash.

What does APR mean?

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. Unlike some of our competitors, we do not have any hidden charges, broker deals or set-up fees which will cost you more!

Sometimes the lowest APR is not your best choice, to learn more about this see the money advice service on the true cost of borrowing.

Why is a logbook loan cheaper than a payday loan?

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 logbook as security means a lower interest rate and lower repayments.

What's the difference between logbook loans and guarantor loans?

A logbook loan uses your vehicle as security for the loan, even if you have poor credit. This means that we 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, there is a potential that we will take possession of the vehicle.

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 can be quite 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.

Qualifying for a Logbook Loan

What will I need?

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.

  • V5 logbook registered in the applicants name
  • Insurance certificate
  • Recent bills as proof of address
  • Passport or driving licence as proof of ID

What if im self-employed?

Yes, providing you can show us evidence that you have a regular income and can meet your repayments, being self-employed isn’t a problem.

What if my only income is from benefits?

Unfortunately, we cannot accept your application 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.

Contact our friendly team now to find a solution to your needs.

What if im already with another logbook lender?

You can consider switching your current logbook loan over to Auto Advance.

Please call our friendly team to help you switch.

Can I get a loan on my van?

Yes, as long as you meet our other criteria we’re happy to issue a loan against a van or other small commercial vehicles.

Does the car have to be road legal?

Your vehicle must be road legal at all times throughout the life of the loan. We will carry out online checks as part of the application process and it is your obligation under contract to maintain the vehicles road worthiness.

For more information please the DVLA requirements.

My car is quite old, can I still apply?

We will offer a loan against a car providing it is in good working order and has a good value. We prefer to work with customers who have cars of less than 10 years old, but we’re always happy to discuss your personal circumstances.

My car is on finance, can I still apply?

If you’re close to making your final repayment, feel free to give us a call and discuss your specific circumstances and we’ll do what we can to help.

Applying for a Logbook Loan

How do I apply for a loan against my car?

In order to apply for a logbook loan, the vehicle must be registered in your name on the V5 logbook.

You can fill out our quick 5 minute application 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 give our friendly team a call if you are unsure about anything.

Do I have to do a credit check?

Yes. As a responsible lender, we have to take steps to ensure that our customers are creditworthy and that the repayments are affordable. We only want you to 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 CCJ’s we will still consider you for a logbook loan, our expert team will focus on your current individual circumstances.

Why do you need my bank statements?

As an ethical lender we 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, we need to see 60 days transaction history if you are in full-time or part-time employment and 90 days if you are self-employed.

How do I give you my bank statements?

By using our secure online fast-track system, all you have to do is login to your online banking and the system handles the rest. Your bank will automatically send us read only information to review your application. We only see the financial information required to assess if you are able to make repayments on your loan and we do not see any of your online credentials. By using our fast-track system you’ll receive a decision in 30 minutes. 

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 upload the documents via our secure application. If you can use social media, you can easily use our service. However, as this is a manual process it can take 1 to 2 hours to get your decision.

Will you contact my employer?

We do not need to contact your employer as part of the application process. However, we will ask you to provide us with details about your employment.

Do agents have to come to my house?

No, you can pick any convenient location you would prefer. Our agents will meet you anywhere if they can safely view the car and sign the paperwork. We have had appointments in supermarkets, hotels and petrol station car parks. You choose what is comfortable for you. Alternatively, you can visit one of our branches if there is one near you.

Are my details kept confidential?

Your confidentiality is of paramount importance to Auto Advance and we’ll never give or sell your details to anybody else. We will not contact your employer and all information you give us will be treated in the strictest of confidence at all times - View Our Privacy Policy.

How Logbook Loans Affect Your Vehicle

Do you change details on the V5?

No details on your V5 document are changed during the period of your loan. We simply keep the logbook and return it to you when the loan is settled in full. Please see our answer to Who is the owner of the vehicle.

Who is the owner of the vehicle?

Technically, the Bill of Sale makes us the legal owners of your vehicle until the loan is fully repaid. This works just like a mortgage. You live in the house but the bank own the property until it has been paid off. 

Please see our blog post explaining how we use your logbook

Who is responsible for insurance?

You are still required to cover your vehicle with a valid insurance policy. Please see What happens in an accident?

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 us 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.

Who is the owner of the vehicle?

Technically, the Bill of Sale makes us the legal owners of your vehicle until the loan is fully repaid. This works just like a mortgage. You live in the house but the bank own the property until it has been paid off. 

Please see our blog post explaining how we use your logbook

How can i check my vehicle's history?

You can find information about your vehicle in two ways - 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.

Repayments and Interest

Are there any hidden fees?

No, we have no hidden fees. Unlike some lenders, we do not charge any administration or set-up fees. Our terms are transparent, if you would like more information our friendly team would be happy to discuss this with you.

Can I settle my loan early?

Yes, of course! We won't even charge you any early settlement, exit, or penalty fees.

 

How long are the loan terms?

Loan terms will depend on the amount borrowed and the repayment rate agreed. However, if you’re struggling to meet your commitment, we ask that you contact us as soon as possible so that we can try to find a way to help.

What are the interest rates for a logbook loan?

Your interest rate will depend on how much you borrow and how much the full value of the car is. The lower the amount you borrow it in relation to the car’s value, the better rate we can offer you. Any interest payable is calculated from the remainder of the money you owe, not from the initial loan value.

Would paying more reduce my interest?

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 we do not charge you fines or extra add-on charges for settling early.

What is the representative APR example?

Representative APR refers to the rate that at least 51% of people who are accepted for an Auto Advance Logbook Loan pay.

What happens if I fail to make repayments?

Hopefully that won’t happen, but if you find yourself in this position we will sell the car on your behalf and use the sale funds to settle your debt. Anything left over once the loan has been settled will be given back to you.

How much do I need to pay back after 2 or 3 months?

Once your loan is processed your monthly payments will be planned out over the period you have chosen, meaning you will pay the same amount every month.

Car Pawnbroking FAQ's

How does Pawnbroking work?

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 a guide on Pawnbroking from the Money Advice Service.

Are there really no credit checks?

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.

When do I have to pay?

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.

My car is a classic and needs regular servicing.

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.
See our answer to Will my car be looked after?

How will I get paid

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.

Who picks up my car?

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.

Will my car be looked after?

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.

What documents will I need?

To successfully apply for a pawnbroking loan we will require you to provide:
  • Proof of address
  • Proof of identity
  • Proof of ownership
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.

Representative Example


£1000

Total Amount of Credit

£163.34

Monthly Payment

96.00%

Fixed Annual Interest Rate

£1960.08

Total Amount Repayable

12 Months

Duration

300.30%

Representative APR
Warning: Late repayments can cause you serious money problems. Your vehicle is at risk if you fail to repay the loan. For help or advice, please visit Money Advice Service
Authorised and regulated by the Financial Conduct Authority under number 677922. Auto Advance Logbook Loans is a trading name of DTW Associates Limited, registered in England and Wales under number 05305220. Registered address: Ashford House, 41-45 Church Road, Ashford, Middlesex, TW15 2TY.
* Cash within hours: applies to enquiries that are submitted on working days before 2:30pm, whilst allowing for administration, underwriting and processing. However, we are able to process enquiries outside of regular working hours at customers' place of work or household. This is entirely dependant on customers' needs.
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