V5 Loans
Good:
You can still drive your car for the term of the loan
Bad:
They have the ability to repossess your car if you do not make repayments
Verdict:
Another logbook lender with a bad reputation - your car acts as the security for the loan and if you don't make repayments they have the ability to repossess it, only use this as a last resort and have no other options
V5 Loans secure the funds they lend you against your car. They can lend you between £500 and £20,000 for up to 78 weeks. Like other logbook lenders your car is used as collateral, meaning if you miss any payments your car can be repossessed and sold to cover the cost of the loan. Your car must be free (or almost) of finance and legally yours. It also cannot be registered before 2002 (51 registration).
You can apply online or over the phone with V5 Loans. Once you have completed the application form, they will carry out an initial assessment based on the information you provided and a representative will contact you as soon as possible if they can offer a loan. They say that they are happy to lend to people who do not have the best credit as they have an easy method of claiming the money back from you. You can only borrow up to the value of your car. Once you have applied, an appointment will be made to for someone to check your car and your documents. All being well, the money can be with you within hours of these checks being made.
Logbook loans like these are one of the more expensive and high risk forms of borrowing. You are going to be paying a lot more that you borrow, and you only have to miss one payment before V5 have the ability to sell your car without even going to court. A very expensive option so should only be used as a last resort.
I can't believe these company's exist, don't do it, crooks
Do not under any circumstances use this loan facility. They are nothing but loan sharks. I applied to borrow £2000 and was accepted. V5 sent a guys down to visit me and he came armed with a cheque for £3000 (the cheque was already signed and he was not the person who signed the cheques) so, not wanting to have another delay (I was desparate for cash) I took the cheque. I'm certain this was a tactic used by V5 to increase my borrowing so that they made more through interest payments. I paid back over £3000 in the first year and then fell into difficulty with repayments. The cars re-processed with no warning (a bailiff turned up who was little more than a thug) and despite quoting a fee of 3500 to release the car and take ownership, when my brother agreed to settle the loan so I could take the car this fee had gone up to £4300. So I paid over £7000 for a £3000 loan in little more than 12 months. The car was only worth £8000! These guys are crooks and whilst I understand that desparate people do desparate things (I did) please do yourself a favour and do not use this company. Don't fall for the polite ladies who answer the phone. Behind the scenes is a crook who owns the business.
I cant understand how these companies are allowed to operate. Basically you borrow £1500 and you instantly owe them over4K if you keep it for the normal period. In no normal situation would people think this is acceptable, just because you have bad credit doesn't mean you should be allowed to be ripped off! Never again
I feel as though I should be wary of this company as the concept of securing a loan against the car does seem a bit weird but up till now, I have had no problems with them. I am about half way through paying back the £2000 I Borrowed from them. The speed of service was very good, the money was with me the next day after applying but I feel the interest is still quite high considering.
Overall very happy with the service. The loan is secured against the value of your car. One of their friendly staff offered to come and meet at my house to chat about the details, though I did in the end respectfully declined and chose to meet at one of their offices. The great thing is the funds were available to me really quickly, which due to my financial situation at the time was really handy. A good alternative to lending though I would go for a more secure lender if needs be.
Loans up to £20,000 - 78 weeks
Cash (5% charge that goes to your representative)
- You must be in employment and be able to provide proof of income.
- Apply online and their staff will call you to arrange to meet at yours or one of their offices
- The value of your car is assessed and documents are checked (make, model, age, mileage, condition, etc.)
- You can make either weekly or monthly repayments
- You must be 18 years of age or older to apply and it doesn't matter it you don't have a good credit history
- You need: Full UK Driving licence, passport, logbook, wage slip, bank statement, insurance documents, MOT, utility bill, car that is FREE (or almost) of finance
- The car must be legally yours and can't be registered before 2002 (51 registration)
- Charge for 2nd, 3rd, 4th and 5th late payment letter - £10
- Charge for initial payment missed - £20
- If you go into default or arrears, they have the ability to come and repossess the car
- None
