Log book loans.

[blade7]

Is there any consumer protection in place yet for the logbook/bill of sale type loans ?. I did a HPI check recently and their position is they are a database and if they haven't been advised of any loan their guarantee wouldn't apply. I don't have a logbook loan problem but I was interested in a car on ebay, it is immaculate and the right price but it's been listed 4 times without a bid which seems a bit suspicious.

[HorneyMX5]

I don't see how these loans work as possesion of the log book does not make you the owner of the vehicle.

Nick

[AndrewW-G]

HorneyMX5 said:

I don't see how these loans work as possesion of the log book does not make you the owner of the vehicle.

Nick

The loan is secured against the vehicle, not just the "log book", if you don’t repay the loan as per your agreement, they take your car and sell it, same as almost all vehicle finance. The finance status of the cars is established prior to the loan being finalised

Had a former employee who took out this sort of finance, using a Passat as collateral, he defaulted, they took the car and a couple of days later went after him for all the fees / penalties etc. that were over and above the value of the car.

I almost felt sorry for him . . . . .but he wasn’t forced to take out the loan and wasn’t overly keen on working overtime to financially get back into the black.

[softtop]

someone I know went to sell their car and was told that is not the V5 anymore, it was considered lost so new one has been sent out. I suspect that the child (over 21) of the car owner had used the vehicle as a 'log book loan'

[T_Pot]

ive yet to meet anyone who has had a log book loan and kept their vehicle......

[blade7]

My concern is while this loan is secured on the car no subsequent buyer can get good title, the car could be sold on several times and the finance company can still legally snatch it off my drive in the middle of the night.

Edited by blade7 on Wednesday 15th February 18:22

[blade7]

So there really is no protection with a private purchase then ?.