Compare our car finance.
Choose from Flex Car Finance (personal contract purchase) or Fixed Car Finance (hire purchase).
Flex Car Finance (PCP)
Lower monthly repayments with the option to keep or return your car at the end of the agreement.
Fixed Car Finance (HP)
With no final lump sum, you own the car once the agreement ends.
- 3.6% APR representative when you borrow between £7,000 to £25,000
- Fixed monthly repayments
- 1-5 year terms available
- Own the car when the agreement ends
- No early repayment charges or final lump sum
- Funds are sent directly to the dealer.
See if you can get a better deal or help paying a final lump sum by switching your car finance to us.
- Switch existing HP or PCP finance.
- Online quotes and approval.
- Choose to switch to HP or PCP with fixed monthly repayments.
- Keep your current car.
- No early repayment charges on our finance.
- Funds are sent directly to the finance provider.
Other terms, borrowing amounts and rates are available.
As well as the PCP, HP and Refinance features, with Halifax Car Finance you also get these:
- As many quotes as you like
- No credit check needed
- Can be used for new or used cars
- Buy from large range of dealerships
- Manage everything online once you’re up and running
You'll need to give us:
- dealer or current finance provider's name and postcode
- car registration number
- current and expected yearly mileage
- total price and deposit amount
- your monthly income
- your mortgage/rent payments and regular spending
- existing car finance details (if you have any)
- the delivery date and full vehicle details (if you don’t know the reg) of any new car
Once you’ve made an application
- you’ll be given a decision straight away, which is valid for 90 days
- you’ll need to provide the dealer’s or existing finance provider’s bank details, so we can transfer the money after you’ve signed the paperwork. It might take a few hours for this to go through. Payments made after 3.30pm will be with them before 12pm the next working day (Mon-Fri)
- there’s no obligation to go ahead after you’ve been accepted, and your credit rating won’t be affected if you change your mind
Make sure you’re:
- an existing Halifax current account customer (min 3 months)
- registered for Online Banking
- aged 18 or over
- a UK resident
Credit is subject to status and additional affordability checks.
Car finance in 3 simple steps
How does it compare to a loan?
With a loan, money is sent to your current account and you pay the dealer, seller or current finance provider yourself. You can choose the amount and term you want to borrow the money over. You’ll own the car as soon as you pay the dealer/seller.
With car finance, the money’s sent directly to the dealer, or the company you have your existing agreement with, rather than your current account. You can’t borrow more than you need for the car or finance settlement amount. You don’t own the car until you’ve finished repaying the finance.
Take greater control of your Halifax online car finance account in just 3 simple steps.
Watch our PCP explained video
Personal contract purchase (PCP) explained
Let’s start with the basics…
PCP is a great choice if you like to update your car regularly. Or you’re looking for lower monthly payments than a Hire Purchase agreement.
How does PCP work?
Well, it’s split into three parts. An initial deposit. A series of monthly payments. And an optional final lump sum.
Let’s break it down…
Part one is your initial deposit. By putting down a larger amount upfront, you could reduce how much you repay each month.
Part two is your monthly repayments. We work these out based on the anticipated value of the car at the end of your agreement, your agreed annual mileage, and the length of your PCP agreement.
Finally, part three is the optional lump sum final payment. This is decided at the start of your agreement.
And at the end, it gives you three choices. You can hand the keys back and walk away. All you’ll have to do is cover the costs if there’s wear and tear or you’ve exceeded the agreed mileage. If you’ve decided you want to keep the car, you can buy it outright by paying the lump sum final payment. Or, you can apply for a new PCP agreement. If you’re successful, you can use your current car for part-exchange.
So, there you have it:
That’s Personal Contract Purchase, explained.
Watch our HP explained video
Hire purchase explained
Let’s start with the basics…
Hire Purchase (or HP) works just like a loan, which you use to buy a car.
You can choose how much you want to borrow. And how long you want to take paying it back.
You might need to pay a deposit right at the start. But after your final payment, that’s it – you’re all paid up and the car is yours.
The benefits of Hire Purchase are that, you don’t have any annual mileage limits to worry about. Or a big lump sum to pay at the end.
So there you have it:
That’s Hire Purchase, explained.
Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. 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.