Logbook Loans Advice

mowen81

Hi All.

Earlier this year i took out a logbook loan against my car. I know it was silly, but at the time i as desperate for the money and it was the only way i could get hold of it.

Anyway, today, the head gasket has gone on the engine and it is going to cost £350 - £400 to fix. This is more then likely more than the car is worth. So i'm thinking of cutting my losses and getting the car scrapped.

When the loan was taken out they advised me that they had a bill of sale on it. How will the loan be affected by me scrapping the car, and will i even be able to get it scrapped.

I appreciated any advice given as i'm a bit stuck as to what i can do now.

Apples2

If you try to get rid of it they will want the loan back. Get ready for a shock when you find it how much you owe.

tinkerbell28

They will still want the loan back yes. You can't scrap it without their permission as it isn't your car to dispose of.

bigadaj

OP just hand the car back to them. There will no doubt be a large sum to pay in addition, assuming your credit is poor. Which is reasonable given that you've got a logbook loan, then it woud, appear you wouldn't be able to cover the additional fees and interest. Problem is they may well go for a ccj and so your credit file will be damaged if its already very bad then might not make too much difference.

manzanilla

do you have any other debts? I ask because often people only take out logbook loans when they have already maxed out their credit cards... if this is the case, then you really need to to look at your whole debt situation, not just the logbook loan.