Four car finance options, one careful provider.

When it comes to financing your next car, we give you four options to match your needs. You can choose from Personal Contract Purchase (PCP), Hire Purchase (HP), Car Lease 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. 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.
  • Borrowing from £3,000 to £60,000 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.
  • Once your application is agreed and you’ve signed the legal documents online, we transfer the finance amount direct to the dealership the same day. 
Get a PCP quote Get a PCP quote

2. 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.
  • Borrowing from £3,000 to £60,000 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.
  • Once your application is agreed and you’ve signed the legal documents online, we transfer the finance amount direct to the dealership the same day. 
Get a HP quote Get a HP quote

3. Car Leasing

A long-term rental of a brand new car, paying the same amount each month and hand the car back at the end.

  • Choose from over 4,000 brand-new cars from more than 30 manufacturers
  • Fixed monthly repayments
  • 2-5 year terms available
  • No option to own the vehicle
  • You set the yearly mileage limit
  • Option to include a maintenance and breakdown package

Leasing is exclusively provided by Lex Autolease Limited. Lloyds Bank plc act as a credit broker not the lender.

Get a Car Leasing quote

4. 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

Important information: to take car finance with us, you'll need to be aged 18 or over, a UK resident, hold a current account with us (min 3 months) and be registered for Internet Banking.

We are unable to refinance cars from existing Lloyds Bank car finance customers.

When we transfer the finance amount direct to your current finance provider, we normally do this on the same day. The money could be in their account in a few hours. Payments made after 2.30pm will be received before 12pm the following day.

Lending is subject to status and additional affordability checks.

Compare your car finance options

Comparing your car finance is simple. For HP and PCP, use our comparison tool to discover the right finance option for you. Get started today.

Compare car finance

Differences between HP, PCP and our Personal Loan 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)

5.9% APR when borrowing between £7,000 and £25,000

Personal Contract Purchase (PCP)

6.9% APR when borrowing between £7,000 and £25,000

Personal Loan

Log on to Internet Banking to get a personalised quote with no affect on your credit score.

 

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 or HP 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 APR

HP Finance Example

N/A

PCP Finance Example

N/A

 

APR

HP Finance Example

5.9% APR

PCP Finance Example

6.9% APR

 

Total amount of credit

HP Finance Example

£13,000

PCP Finance Example

£13,000

 

Annual interest rate (fixed)

HP Finance Example

5.71%

PCP Finance Example

6.67%

 

Agreement duration

HP Finance Example

48 months

PCP Finance Example

48 months

 

Monthly repayments

HP Finance Example

48 x £303.80

PCP Finance Example

47 x £187.82

 

Optional final repayment*

HP Finance Example

N/A

PCP Finance Example

£6,850

 

Total amount payable

HP Finance Example

£14,592.40 (includes £10 purchase fee)

PCP Finance Example

£15,687.54 (includes £10 purchase fee)

*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.

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Important legal information

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

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.