Can a logbook loans company get the car back if I sell it

There are several different types of loan products available in UK for every type of borrowers.

For bad credit borrowers, the options tend to be somewhat limited.

Car logbook loans are currently very popular with the bad credit borrowers since they are hassle free and easy to get qualified for.

What are logbook loans?

A logbook for a car is the registration document that the owner of the car would get when he/she purchases a new or a used car. With a car logbook loan you would be able to borrow money against the logbook of your car.

What this means is that you would have to provide the logbook to the lender as a security. However, you would still retain the ownership of the car and would be able to continue to use it like normal. In the event that you fail to repay the loan in full, the lender can repossess your car and sell it to recover the money that you owe.

Can you sell the car if you have taken a car logbook loan and can the lender get it back?

With car logbook loans, the car would not change hands and you would be able to continue using it. However, since you would have to hand over the logbook to the lender, the ownership of the car would be temporarily given to the lender through the bill of sale.

What this bill means is that you cannot sell the car off legally if you have not yet repaid the loan. The bill is governed by Consumer Credit Act. Though the lender would not be able to seize the car without the court order, it is still illegal to sell the car on which you still owe money.

Even if you do sell off the car, it would be seized back by the lender from the person that you have sold it off to. You should also know that a step of this nature can result into a law suit against you. In any case, a buyer would not consent to buying any car without the logbook so it would be rare for you to find a buyer for your car when you don’t have its logbook.