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.
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.
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:
Our car loans are just a Personal Loan you use to buy a car. If your application is approved then once the money is in your account you can buy your car directly from a dealer or private seller. The car will be yours straight away. You will then pay the loan back to us in agreed monthly instalments.
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 a 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.
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.
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.