What you need to know

If you’re thinking about taking out Halifax Car Plan Extra, here are a few things for you to consider before you start an application.

How the product works

Take a look at some questions about Halifax Car Plan Extra to help you with some of the common queries you may have.

Once you have your new car

Here are some questions you may have once you’ve bought your new car.

What do I need to know before applying

I'm not a Halifax customer - can I apply?

No - our car finance offer is for existing customers who have held a Halifax current account for more than 3 months.

Who is eligible for Car Plan Extra?

You could apply for car finance if you: are buying a new or used car from an approved dealership, are 18 years old or over, a resident in the UK, have a Halifax current account of 3 months+, are registered for Internet Banking and want to borrow between £3,000 and £60,000.

How does the application work?

Applying for car finance is straightforward and simple.

  • First see exactly how much you can borrow by using our personalised calculator and choose a finance options to suit your needs
  • The next step is to enter the details of the car and dealer you are using. You can use the ‘Find Dealer’ section of the next page to check if dealer is eligible before completing the application
  • Once you have completed the application we’ll keep the offer for you for up to 90 days
  • Finally, you need to enter the Bank Details of the dealer you are using to complete the finance agreement. We will then pay the dealer directly.

Watch our 2 minute video that helps explain the process.

Will Halifax perform a credit search?

When you apply for Halifax Car Finance, we don’t need to do any additional credit searches, because we already know you. This means that you can browse your options and apply for car finance with no credit searches.

What details do I need before I apply?

Once you’ve found the car you want to buy, we’ll need some further details.

  • Dealer’s name, postcode and bank account details.
  • The registration number.
  • Current mileage.
  • How many miles you expect to drive each year.
  • The price.
  • The deposit.

If it’s a new car we’ll also need:

  • the delivery date of your car
  • the full vehicle details if you don’t know the registration

We’ll also ask details of your finances such as monthly income, mortgage/rent payments; your regular spending, and any existing car finance commitments.

Are there any restrictions on which car I can buy?

We offer finance for new and used cars at the majority of UK dealerships. There are some restrictions relating to make/model, age and mileage of the car, and we can't finance commercial vehicles. After you enter the details for the car you want to buy, we’ll tell you if our finance is available for that car.

Can I part-exchange my current car?

We don’t currently offer part exchange as part of our car finance. However, you can get an independent valuation and sell your car, and use the money from the sale as a deposit for your new car. Or you can arrange a part-exchange with the dealership you’re buying from.

Can I transfer my existing car finance arrangements or do you offer finance consolidation?

At present we don’t offer re-finance on credit agreements taken out with other providers. We also don’t offer consolidation of finance, for example paying off a loan or credit card that you’ve bought a car with.

How do Halifax pay for my car and how long will it take?

We transfer the finance amount to the dealership directly as soon as you've signed the legal documents online. It can take several hours for the money to be received. Payments made after 2.30pm will be with the dealership before 12pm the following day.

Can I use any car dealer?

We work with the majority of UK dealers - early into the online process we'll confirm which dealers you can use.

Does it matter what driving licence I have when taking out Car Finance?

The type of licence you hold will not impact your finance decision.

Do you offer Car Finance for motorbikes or vans?

Unfortunately not, our finance is only available for cars.

Can I use your car finance to buy a car for business purposes?

Unfortunately not, you can only take car finance for personal, not business purposes.

If I finance a vehicle, am I able to register the car in another family member’s name?

We do not allow the vehicle to be registered in another family member’s name as the person applying for finance, should be the owner and main driver of the vehicle.

Can I apply in branch?

Car finance is an online offer only so you can't apply in branch.

If you do have any questions you can call us on +44 (0)333 202 7940 and we’ll be happy to help. Please note, you will not be able to apply over the phone.

Can I transfer agreement to someone else?

No, you cannot transfer an agreement to someone else.

How many applications can I make?

You can make as many applications online as you like, without any credit searches because you’re already our current account customer and we’ll keep the offer for you, up to 90 days. However, you can only have one application saved at a time.

Do I have to be on the voters/electoral roll to get approved for car loans?

Not necessarily, although this could affect your credit score, if you are not.

What makes Halifax car finance interest rates so competitive?

Our car finance rates are competitive because the finance is secured against the car. There’s less risk for us, since the car can be repossessed if you fail to keep up your repayments, and this means we’re able to offer good rates.

How do the products work?

How do I work out my deposit?

Your deposit is the amount of money you have available to pay the dealership upfront and could include savings and/ or the value of a current vehicle. For example:

a) Mr Jones is coming to the end of a 3 year existing car finance agreement, which is a PCP deal and wants to buy a different car. He has his eye on a car being sold at £13,200. His local dealership gives him a valuation of his current vehicle of £6,000. This is £500 higher than the amount required to settle the outstanding finance on his current car (£5,500) so he decides to use this as equity for his new car rather than return his current car to his current lender under the terms of his PCP deal. He will therefore pay the £5,500 to his current PCP lender and have £500 to use as a deposit on his new car. Mr Jones also has £1,000 cash savings. Using the £500 equity in his current car, plus his savings he has a deposit of £1,500 to pay directly to the dealership. When applying for Halifax Car Finance, Mr Jones inputs the price of the car as £13,200, his deposit as £1,500 and therefore his borrowing amount as £11,700.

b) Ms Singh owns her car outright but fancies a change. She has seen a car for sale at £8,000. The dealership offers her £1,750 for her current car which she accepts. Adding her cash savings of £250 to this gives her a deposit of £2,000. When applying for Halifax Car Finance, Ms Singh inputs the price of the car as £8,000, her deposit as £2,000 and therefore her borrowing amount as £6,000.

Can I apply using my joint account?

Providing you’re eligible you can apply using your joint account but the application will be registered against the user that is currently signed in, not both names. This means the Car Finance contract will be in one name only, and any service questions can only be answered to the sole named applicant. When completing the application the answers you give should only reflect your individual circumstances. Income should be entered as your personal income not the full household income and outgoings should be entered as your contribution to those costs.

Why do I need Internet Banking?

Halifax Car Finance Extra is an online offer only. Once you've registered for Internet/Online Banking (it’s easy to register and only takes a few minutes) you can use the personalised calculator to see what each car finance option could look like for you. Register for Online Banking.

What is the lump sum on the Flex (PCP) finance option?

The lump-sum is a one-off optional payment due at the end of your (PCP) finance term, if you decide to keep the car.

This is normally referred to as the Guaranteed Future Value (GFV) and is an estimated value of how much the car will be worth at the end of a finance agreement (based on your expected mileage and agreement term.)

There is no lump sum payment on the Fixed (HP) finance option, which is why monthly payments are usually higher than with the Flex (PCP) option.

What does APR mean?

APR stands for Annual Percentage Rate and is the amount of interest on your total borrowed amount that you'll pay annually (averaged over the full term of the loan). APR’s are typically used when comparing finance options to understand which would be the cheapest option overall.

What’s the difference between Car Finance and an Unsecured Personal Loan?

Extra Protection
If you use Car Finance instead of an Unsecured Loan to buy your car you’ll have extra protection when buying from a dealer. It is the car finance provider rather than the dealer who is legally responsible to you if there are problems with the car, which means we’ll work with the dealer to fix your issue, giving you peace of mind.

Secured Lending
Car Finance lenders use the car as security against the finance taken out, so if payments are not kept up, the car can be repossessed.

For unsecured personal loans the lender doesn’t secure the finance against an asset (E.g. a car or a home).

Car Finance (PCP or HP options) Unsecured Personal Loan
Car Ownership Don’t own car until final payment Own the car as soon as you purchase
Loan purpose Can only use to purchase car Could use for other purposes as well as car purchase
Deposit required to take finance out Typically Yes No
Extra Protection Yes – Covered under section 75 of the Consumer Credit Act 1974 if something goes wrong. No

Is car insurance included as part of car finance?

Car insurance is not included as part of the finance we offer although is available separately. Please note we need the car to be comprehensively insured.

What if I want to change my car before the end of the term?

You’ll need to request an early settlement figure from us, which you can do online, and settle your current contract before you can begin a new one. You will also have the option to voluntarily terminate your contract. Our customer service team will be able to give you details of the early settlement balance or more information about voluntary termination, and the steps you’d need to take.

What if I decide I want to keep the car?

If you decide to keep the car the final lump sum payment will be taken by Direct Debit from your bank account that you pay your car finance from.

What’s next once I have my new car?

What should I do with the dealers invoice?

You can store your invoice with the rest of the cars documents, as the invoice is for your record only. You may need this in future when title is transferred to you as proof of purchase.

What paperwork will I receive?

All the details of your finance agreement will be sent to you via email. You should ensure you have read these and understand them and store in a safe place. We’ll send you a welcome letter which confirms your monthly payments and direct debit details.

How do I return the car at the end of my Flex (PCP) Car finance term?

We will contact you 90 days before the end of your finance agreement to outline the options you have. If you decide to return the car to us, you’ll need to call our customer services team on +44 (0)333 202 7967. We can either:

  • arrange to pick the car up from you free of charge (providing the car is still driveable)
  • or, if you'd prefer you can return it to one of the authorised venues across the UK.

If the car cannot be driven and requires a tow-truck the charge is £250.

Once the car has been collected or returned, we’ll check the mileage and that it is in good condition. Providing it is, we’ll write to you confirming that the agreement has ended and your Car Finance account is closed.