Car loan

Sporty or practical? Thinking about electric? Brand new, or a few miles on the clock? Whatever plans you have, a car loan could help.

What is a car loan?

  • A car loan is just a Personal Loan you use to buy a car. Buying a car with a loan means you can buy directly from a dealer or private seller, and the car will be yours from day one.
  • Halifax current account holders can apply for between £1,000 and £50,000 (between £1,000 and £25,000 if you don’t have a Halifax current account).
  • You can ask for up to two repayment holidays a year (subject to approval). Interest will still be charged for the months that you don’t make any payments, so you'll pay more interest overall and your original term will be extended.
  • No charge for making extra payments – if you pay off your loan in full earlier than agreed, you’ll be charged up to 58 days’ interest. 

6.6% APR representative for loans of £7,500 to £25,000 over 1 to 5 years

Representative Example

You could borrow £10,000 over 48 months with 48 monthly repayments of £236.73. Total amount repayable will be £11,363.04. Representative 6.6% APR, Annual interest rate (fixed) 6.41%.

This representative APR applies to loans of £7,500 to £25,000 over 1 to 5 years. Other terms and loan amounts are available at different rates. If you qualify for a loan we'll tell you the rate that applies when you get your personalised quote. The maximum APR you could be offered is 29.9% APR.

Other amounts and terms are available at different rates.

Here are a few points to consider before you buy your next car.

Work out your budget

Use our handy Loan calculator to find out what your monthly repayments could be, and whether a car loan is the right option for you.

If you have a Halifax current account, you can get a personalised quote in just 1 minute through Online Banking.

Considering Electric Vehicles?

If you're planning on switching to an electric vehicle for your new car, a Personal Loan could help you achieve this goal.

Do your homework

Once you know your budget, you can start looking for cars in your price range. Be sure to compare prices of similar cars so you don’t pay more than you need to.

It’s also a good idea to get insurance quotes and check car tax rates before you buy. Keep in mind the cost of any work that might be needed too.

Take someone with you

When you’re viewing a car, try to go with someone who knows what to look out for. They will be able to spot any issues that you might have missed.

Make sure to view cars in daylight and always ask to test drive any car before you buy.

Apply for a car loan

With Halifax it's easy to apply for a car loan. The decision whether to offer you a loan, the amount we’ll lend you and the interest rate will all be based on an assessment of your individual circumstances. If you hold a Halifax current account, in most cases we’ll tell you how much you can borrow and if you’re likely to be approved when you get your quote. This won’t affect your credit score. Check out how it works for existing and new customers:

I have a Halifax Current Account

  • You can apply for between £1,000 and £50,000
  • Choose to make your monthly repayments over 1 to 7 years
  • Get your quote with no credit searches
  • It takes about 1 minute to get your personalised quote in Online Banking
  • If you’re approved, you could have the money in your Halifax current account in minutes. 

It’s quick and easy to get one step closer to your dream car today. Tap ‘Apply Now’ to log-in and apply through the loans calculator.

Apply Now

Alternatively you can call us on 0345 604 7292 (Lines are open 8am-8pm Monday – Friday and 9am-5pm Saturday and Sunday) or visit your local branch.

I don’t have a Halifax Current Account

  • Use our eligibility checker to answer a few quick questions and find out if you're eligible to apply for a loan
  • If pre-approved, get a personalised rate - with no effect on your credit score
  • It takes only minutes to apply online and get an instant decision.
  • You can apply for between £1,000 and £25,000, with monthly repayments over 1 to 7 years
  • If we approve your loan, you should have the money in your account within 2 hours. In some cases it may take a bit longer – but no more than 3 working days.

Check your eligibility now

If you already have a Halifax credit card, mortgage or existing loan, you can also apply by calling us on 0330 123 0678 (Lines open 8am–10pm, 7 days a week).

Why choose Halifax?

  • Instant decision - Apply in minutes and get an instant decision on your loan when you apply online
  • Repayment holidays - Ask for up to two repayment holidays a year (subject to approval). Interest will be charged for the months you don’t make any payments. This means you'll pay more interest overall and your original term will be extended.
  • Quick access to your loan - If you have a Halifax bank account, if approved you could have the money in your account in minutes. If you don't have a Halifax bank account, if approved, you should get the money in your account within 2 hours. Sometimes it may take a bit longer - but no more than 3 working days.

Loan calculator

Our loan calculator could give you an idea of monthly payments and APR. Try it now and apply online.

Use our loan calculator

Frequently asked questions

  • You can apply for a car loan if:

    • You’re aged 18 or over and live in the UK (excluding the Channel Islands and Isle of Man).
    • You’re in paid employment or have regular income.
    • You’re not a full time student.
    • You haven’t had a request for credit declined in the past month.
    • You don’t have a history of bad credit such as bankruptcy or CCJs.

    We will then run a number of eligibility checks based on your criteria to determine whether you qualify for a car loan or not.

    Learn more about loan eligibility

  • When you apply for your car loan, we’ll tell you how much your monthly repayments will be – this is a fixed amount that won’t change. We’ll start taking the payments by Direct Debit the month after you apply – you can choose a date that suits you and change it if you need to.

    If you want to, you can make extra payments with no charge. However, if you pay the loan off early, we may charge you up to 58 days’ interest.

    If you miss a payment then we’ll try and take it again within 7 days. If we still can’t take payment then we will charge you £25. You may be charged further if you miss more payments. Full details will be provided when you apply.

  • The APR we offer you for your car loan is based on a number of factors. These include how much you want to borrow, how long you want to borrow it for, and your previous credit history. You can use our loan calculator to see how much your repayments could be – however, we may offer you a different APR when you apply, based on your circumstances.


  • All of our loans are unsecured. This means we don’t ask you to provide anything as security, such as your house. Rates for unsecured personal loans are worked out on the amount of the loan, the length of the loan, and credit scores.

  • While you can take out a loan to buy a car, you could also consider car finance. With a loan, we transfer the money to you and you pay the seller – you can also use the loan for other things. With car finance, we pay the dealer once everything’s agreed so you don’t have to. With both options you then pay us back monthly.

    We have two car finance options available – Fixed Car Finance (hire purchase) and Flex Car Finance (PCP). Or if you already have Car Finance elsewhere, you can switch from a hire purchase (HP) or personal contract purchase (PCP) agreement with another provider and choose either HP or PCP with us. Compare our car finance options here

Get clued up on credit

Confused by credit? Understand more about how credit works, how to improve your score, and how it affects applying for a loan.

Credit explained

Lending and rate are subject to status. Available to UK residents aged 18+.

Loans are provided by Halifax. Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ.