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Three car finance options, one careful provider.

When it comes to financing your next car, we give you three options to match your needs. You can choose from Personal Contract Purchase (PCP), Hire Purchase (HP) or a Personal Loan.

Important information: To apply for car finance you'll need to be aged over 18, a UK resident, hold a personal current account (min 3 months) and be registered for internet banking.

1. Hire Purchase (HP)

With Hire Purchase (HP) , you benefit from equal monthly payments, no mileage limits, and at the end of the agreement, you own the car.

  • 1-5 year terms available.
  • Own the car when the agreement ends.
  • No early repayment charges or final lump sum.
  • Can also be used to transfer existing car finance.
  • If you choose HP we cover most UK dealers. If you have any problems with the quality of your car, our dedicated team will be on hand to help you.
Get a HP quoteGet a HP quote

2. Personal Contract Purchase (PCP)

Personal Contract Purchase (PCP) can give you the flexibility to switch to a new car more often. 

At the end of the agreement, you can either pay the optional final lump sum to own the car, exchange it for a new one or you simply hand the car back and walk away (return conditions apply).

  • 1-4 year terms available.
  • Own the car by paying a final lump sum, or return it.
  • No early repayment charges.
  • Yearly mileage limits.
  • If you choose PCP we cover most UK dealers. If you have any problems with the quality of your car, our dedicated team will be on hand to help you.
Get a PCP quoteGet a PCP quote

3. Personal Loan

With a Personal Loan, you can choose to buy your car from a dealer or private seller, and you may even have some money left over afterwards.

  • Loans are available from 1 to 7 years.
  • You can use the money for other purchases than just your new car.
  • Funds are sent direct to your bank account.

Apply for a Car loan

Compare your car finance options

Compare your car finance options

Comparing your car finance is simple. Use our comparison tool to discover the right finance option for you. Get started today.

Compare car finance

Differences between our finance options

Here’s more information on the differences between the finance options to help you choose what’s right for you:

Differences between our finance options

 

Hire Purchase (HP)

Personal Contract Purchase (PCP)

Personal Loan

 

Are there restrictions where I buy the car from?

Hire Purchase (HP)

Yes

dealership

Personal Contract Purchase (PCP)

Yes

dealership

Personal Loan

No

 

Could there be extra money used for other purchases?

Hire Purchase (HP)

No

Personal Contract Purchase (PCP)

No

Personal Loan

Yes

 

Are there any excess mileage limits?

Hire Purchase (HP)

No

Personal Contract Purchase (PCP)

Yes - you set the mileage limit, so you don’t pay for more than you need.

Personal Loan

No

 

What is the length of the finance term?

Hire Purchase (HP)

1 to 5 years

Personal Contract Purchase (PCP)

1 to 4 years

Personal Loan

1 to 7 years

 

Do you pay the dealer directly?

Hire Purchase (HP)

We pay the dealer

Personal Contract Purchase (PCP)

We pay the dealer

Personal Loan

We pay you

 

When will I own the car?

Hire Purchase (HP)

Own the car at the end of the agreement

Personal Contract Purchase (PCP)

Own the car by making the lump sum final payment

Personal Loan

Own the car as soon as you purchase

 

Is a guaranteed future value for the car included?

Hire Purchase (HP)

No

Personal Contract Purchase (PCP)

Yes subject to it being returned in good condition and not exceeding the maximum agreed mileage.

Personal Loan

No

 

How do the interest rates compare?*

Hire Purchase (HP)

5.5% APR when borrowing between £7,000 and £25,000

Personal Contract Purchase (PCP)

7.9% APR when borrowing between £7,000 and £25,000

Personal Loan

5.9% APR Representative on personal loans between £7,500 and £25,000

 

The maximum APR you could be offered is 29.9% APR.

 

Hire Purchase (HP)

Personal Contract Purchase (PCP)

Personal Loan

* - Lending is subject to status and additional affordability checks. Rates quoted are subject to change and will depend on product, lending amount and personal circumstances.

Monthly payment examples

Example of how much your monthly repayments could be with PCP,  HP or Personal Loan if you were to buy a car and need finance for £13,000 over 48 months.

Monthly payment examples

 

HP Finance Example

PCP Finance Example

Representative Example Personal Loan

 

Representative APR

HP Finance Example

N/A

PCP Finance Example

N/A

Representative Example Personal Loan

5.9% APR

 

APR

HP Finance Example

5.5% APR

PCP Finance Example

7.9% APR

Representative Example Personal Loan

N/A

 

Total amount of credit

HP Finance Example

£13,000

PCP Finance Example

£13,000

Representative Example Personal Loan

£13,000

 

Annual interest rate (fixed)

HP Finance Example

5.33%

PCP Finance Example

7.61%

Representative Example Personal Loan

5.75%

 

Agreement duration

HP Finance Example

48 months

PCP Finance Example

48 months

Representative Example Personal Loan

48 Months

 

Monthly repayments

HP Finance Example

48 x £301.54

PCP Finance Example

47 x £195.93

Representative Example Personal Loan

48 x £303.80

 

Optional final repayment*

HP Finance Example

N/A

PCP Finance Example

£6,850

Representative Example Personal Loan

N/A

 

Total amount payable

HP Finance Example

£14,483.92 (includes £10 purchase fee)

PCP Finance Example

£16,068.71 (includes £10 purchase fee)

Representative Example Personal Loan

£14,582.40

*With PCP, once you have paid all of your monthly repayments set out in your agreement, you have 3 options:

  1. Pay the optional final repayment and own the car
  2. Hand back the car (return conditions apply) without paying the optional final repayment.
  3. Part exchange the car subject to settling your existing finance agreement. New finance agreements are subject to status.

£50 when you switch

See if you can get a better deal or help pay a final lump sum by switching your car finance with another provider to us.

  • Apply between 17 January until 31 March to be eligible.
  • Log on to get a personalised quote today to see if you could save.

Available to Lloyds Bank customers who switch their existing car finance to us from another finance provider.

Terms and Conditions. Applications must complete by the 30 April 2023 to be eligible for the cashback. Cashback is paid within 30 days of completion and paid into the account that your direct debit is set up on. Offer can be withdrawn at any time. Lending is subject to status and additional affordability checks.

 

Refinance your carRefinance your car
    • Please look at your rights and options with your current agreement. You should check the value of the car and think about whether switching to us is right for you
    • Any early settlement fees that may be payable
    • If you refinance over a longer term this could result in more interest being paid.

     

Lending is subject to status and additional affordability checks. Rates quoted are subject to change and will depend on product, lending amount and personal circumstances.

Lloyds Bank Car Finance Plus (PCP and HP) is available to personal current account customers of more than three months who are registered for Internet Banking, are aged 18 and over and a UK resident.

With Lloyds Bank Car Finance Plus (PCP and HP) we pay the car dealer directly and the majority of UK dealers are covered.

PCP is available on New or Used Cars up to 7 years old at the end of the agreement

Personal Loans: We adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.

Lloyds Bank Personal Loans are available to Lloyds Bank personal current account customers of more than one month who are aged 18 and over and a UK resident.

 

Important legal information

Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS).