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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.
Ready to apply for a car loan?
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.
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:
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If you’d prefer to speak to someone, give us a call or pop into your nearest branch.
Other amounts and terms are available at different rates.
Looking for other ways to buy your dream car?
Let’s take a closer look
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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.
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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.
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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.
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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.
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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.
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