Sporty or practical? 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 £35,000 (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.
3.5% APR representative for loans of £7,500 to £25,000 over 1 to 5 years
Here are a few points to consider before you buy your next car.
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:
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 within 24 hours (no more than 5 working days).
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.
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.
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.