New wheels?
You pay your way.

Finance vs loans

Buying your next car?

With Halifax, you can do it your way. Just as you might pick a sporty soft-top over a city run-around, now you can choose from three great options to finance it:

  1. Personal Loan
  2. Personal Contract Purchase (PCP)
  3. or Hire Purchase (HP).

Personal Loan

Already know that a personal loan is right for you? Here are some points to remember:

  • Available from 1 to 7 years.
  • You can use the money for other things than just the car.
  • Money is sent directly to you.

Get a Personal Loan quote


Already decided that car finance is the right option for your car purchase? Halifax Car Finance gives you:

  • an agreement of up to 5 years
  • two different choices of plan (PCP or HP)
  • the peace of mind that the money is paid straight to the dealer.

Get a Car Finance quote

Brand new or second hand? Dealership or private seller?

With a Personal Loan, you’re free to buy your car privately or direct from the showroom. Plus, you could even end up with some money left over.

Are you looking to switch your car regularly?

Then PCP could be  right for you. At the end of your agreement, you have the option to pay a final lump sum to own the car, swap it for a new set of wheels; or you can hand the keys back. Return conditions apply.

Or perhaps it’s time to settle down with the car of your dreams?

With HP, you get equal monthly payments, no mileage restrictions, and at the end of the agreement, the car’s all yours.

What’s more, if you go for PCP or HP, we cover most UK dealers.

And if for any reason your car is not up to scratch, our team’s ready to help sort it out.


Personal Loan

Flex Car Finance (PCP)

Fixed Car Finance (HP)

Do I need to buy through a car dealer?


Could I have some money left over to spend on something else?

Are there excess mileage conditions?

You set the mileage limit so you don’t pay for more than you need.

How many years can my agreement be?

1 to 7 years

1 to 4 years

1 to 5 years

Do you pay me or the dealer directly?

We pay you

We pay the dealer

We pay the dealer

Is the finance secured against the car?

Will you provide me with a guaranteed future value for the car?

Subject to it being returned in good condition and not exceeding the maximum agreed mileage.

What is the interest rate?

3.5% APR Representative when you borrow between £7,500 and £25,000.

The maximum APR you could be offered is 29.9% APR.

7.4% APR when you borrow between £3,000 and £60,000

3.4% APR when you borrow between £7,000 and £25,000

Monthly comparison

Here’s an example of how much your monthly repayments could be with a Personal Loan, PCP or HP if you were to buy a car and need finance for £13,000 over 4 years. 


Representative Example Personal Loan

PCP Finance Example

HP Finance Example

Representative APR

 3.5% APR





7.4% APR

3.4% APR

Total Amount of Credit




Annual interest rate (fixed)




Agreement Duration

48 months

48 months

48 months

Monthly repayments

48 x £290.31

47 x £251.60

48 x £289.75

Optional final repayment of*


1 x £3,602


Total amount payable


£15,427.20 (Includes £10 Purchase Fee)

£13,908 (Includes £10 Purchase Fee)

*With PCP, once you have paid all of your monthly repayments set out in your agreement, you have 3 options:

  1. pay the optional final repayment and own the car
  2. hand back the car (return conditions apply) without paying the optional final repayment
  3. part exchange the car subject to settling your existing finance agreement.

Made your choice?

Get a Personal Loan quote Get a Car Finance quote

Lending is subject to status and additional affordability checks. Rates quoted are subject to change and will depend on product, lending amount and personal circumstances.

Halifax Personal Loans are available to customers who are aged 18 and over and a UK resident.

Halifax Car Plan Extra (PCP and HP) is available to Halifax current account customers of more than three months who are registered for Online Banking, are aged 18 and over and a UK resident.

With Halifax Car Plan Extra (PCP and HP) we pay the car dealer directly and the majority of UK dealers are covered.

PCP is available on New or Used Cars up to 7 years old at the end of the agreement

Personal Loans: We adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.

Halifax is a division of Bank of Scotland plc. Bank of Scotland plc Registered Office: The Mound, Edinburgh EH1 1YZ.  Registered in Scotland no. SC327000. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.