Car loan

Are you looking for a new car? You could get a Halifax Bank personal loan to buy a new or used car with a fixed interest rate. 

Halifax offers car loans from £1,000 to £50,000 with flexible repayment terms. With no credit searches for existing customers.

Apply online or by phone and the money could be in your account the same day, usually within two hours. 

What is a car loan?

A car loan is a personal loan you use to buy a car. You’ll get a fixed interest rate for the term of your loan with one simple monthly repayment. 

This might be the right option for you if: 

  • You want to buy a car directly from a dealer or private seller of your choice. 
  • You want to own the car outright, with the option to keep or sell it when you want.
  • You’d like to avoid the restrictions that come with other types of car finance.

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 personal quote in minutes 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. Compare the 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 car repairs too.

Take someone with you

When you’re viewing a car, try to go with someone who knows what to look out for. They’ll 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. All loan offers will be based on the amount you’d like to borrow, the term and your credit history. The interest rate will all be based on our assessment of your personal circumstances.

For Halifax current account customers, we’ll usually tell you how much you can borrow and if you’re likely to get approval with 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 one to seven years.
  • Get your quote with no credit searches.
  • It only takes a few minutes to get your personal quote using Online Banking.
  • If you get approval, we’ll transfer the money to your Halifax current account the same day.

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

Apply now

I don’t have a Halifax Current Account

  • Use our eligibility checker to answer a few quick questions and find out if you can apply for a loan.
  • If pre-approved, get your personal interest rate - with no impact to 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 one to seven years.
  • If you get approval, we’ll transfer the money to your account within two hours. Sometimes, it may take longer but no more than three working days.
Check your eligibility now

Representative Example

You could borrow £10000 over 48 months with 48 monthly repayments of £237.16. Total amount repayable will be £11383.68. Representative 6.7% APR, annual interest rate (fixed) 6.5%.

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.

Why choose Halifax?

  • Instant decision - Apply in minutes and get an instant decision on your loan when you apply online.
  • Repayment holidays - You can ask for up to two repayment holidays a year (subject to approval). Interest will still be charged for the months you don’t make repayments. This means you'll pay more interest overall and your original term will be longer.
  • 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 your bank account is with another provider, you should get the money in your account within two hours. Sometimes it may take a bit longer - but no more than three working days.

Loan calculator

Not sure if you are ready to get a personal quote? Use our loan calculator to get an idea of monthly payments and the APR.

You can adjust the amounts and terms to see what your monthly payments could be.

Use our loan calculator

Let’s take a closer look

  • You can apply for a car loan if you:

    • Are age 18 or over and live in the UK (except for the Channel Islands and Isle of Man).
    • Are in paid employment or have regular income.
    • Are not a full-time student.
    • Have not had a request for credit declined in the past month.
    • Do not have a history of poor credit such as bankruptcy or CCJs.

    We’ll then run some 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 payments will be. This is a fixed amount that won’t change. A Direct Debit gets set-up for the payments a month after you apply. You can choose a date that suits you and make changes to that date if needed.

    You can make extra payments with no extra charge when it’s convenient to you.

    It is also possible to pay off your loan earlier than agreed but we may charge you up to 58 days’ interest.

    If you miss a payment, then we’ll try to take it again within seven days. If we still can’t take payment, then we’ll charge you £25. You may get further charges if you continue to miss payments. Full details will be available when you apply.

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

  • All of our loans are unsecured. This means we won’t ask for assets as security, such as your house. Rates for unsecured personal loans get worked out using 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 reasons such as car repairs, consolidating debt or home improvements. 

    Car finance is different to a loan. Once you have found a car at an approved dealership, we’ll pay the dealer directly. 

    Other car finance options we offer include: 

    • Personal Contract Hire (PCH). 
    • Hire Purchase (HP).
    • Personal Contract Purchase (PCP).
    • Refinance- If you have car finance with another provider you can switch a Hire Purchase (HP) or Personal Contract Purchase (PCP) agreement to us.

    Compare our car finance options here

Get helpful information on credit

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

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