Can I check if a car has a log-book loan on it?

[UpOverTheEyeballs2]

Hi, a general question, not related to any purchase I've made, yet.

 

I thought that log-book loans were only for newish cars and those over, say, £3,000, however, from what I'm reading it appears older and less-expensive cars can end up on a log-book loan as well.

 

So, is there any rule-of-thumb such as, cars over 10 or 15 years or below £xxx will probably not have a log-book loan secured against them.

 

I'm asking because as I understand it there's a glaring loophole in the procedure whereby someone can obtain one or more log-book loans with their V5 (multiple by telling DVLA it's lost and getting a replacement) and then sell the car before the loans are registered, assuming the coy even registers them at all.

 

When I did a search on google as if I wanted to set up a log-book loan website/franchise (NO, I don't, but the info's out there!) the 10 year and price came up, but it wasn't firm.

 

Any suggestions or pointers.

 

Thanks.

[citizenB]

http://www.saga.co.uk/insurance/car-insurance/logbook-loans.aspx

 

http://www.thisismoney.co.uk/money/cars/article-2111066/Logbook-loan-second-hand-car-trap-One-outstanding-finance-YOU-liable.html

 

 

If a customer conducts an HPI Check – which costs £20 via the website – and subsequently finds that the vehicle is subject to a ‘Bill of Sale’ agreement that was not flagged, the buyer will be protected by the HPI guarantee, which provides financial reimbursement of up to £30,000. [read the terms and conditions via HPI]

 

Read more: http://www.thisismoney.co.uk/money/cars/article-2111066/Logbook-loan-second-hand-car-trap-One-outstanding-finance-YOU-liable.html#ixzz3HT5uuw8t

 

[UpOverTheEyeballs2]

Thanks for the links, have had a read, but they don't refer to any age or value restrictions.

 

I guess it's really a buyer beware issue whereby any owner of any vehicle of any age or price 'might' have obtained a log-book loan against the V5.

 

Oh well, have to be extra careful I guess.

Edited October 28, 2014 by UpOverTheEyeballs2

[citizenB]

Hope they are useful.

[theoldrouge]

there are no age or value restrictions

 

it purely depends on whether the vehicle and borrower meets the lbl companies lending criteria

 

the best protection when purchasing is as above

 

a full and genuine check with hpi only