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 a Personal Loan, Personal Contract Purchase (PCP) or Hire Purchase (HP), all with the expertise and experience you expect from your bank.

Why a 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.

Why 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 (subject to settling your existing agreement, new agreements are subject to status) or you simply hand the car back and walk away (return conditions apply).

Additionally, if you choose PCP, we cover most UK dealers, and if you have any problems with the quality of your car, our dedicated team will be on hand to help you.

Why 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.

Additionally, if you choose HP, we cover most UK dealers, and if you have any problems with the quality of your car, our dedicated team will be on hand to help you.

Personal Loan

Have you decided that a personal loan is the right option for you? Some key points to remember are:

  • 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.

Get a Personal Loan quote

PCP or HP

You have decided that car finance is the way to fund your next car purchase. Lloyds Bank gives you:

  • an agreement of up to 5 years
  • two different choices of plan (PCP or HP)
  • the comfort that the funds are sent directly to the car dealer.

Get a Car Finance quote

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

 

Personal Loan

Flex Car Finance (PCP)

Fixed Car Finance (HP)

 

Are there restrictions where I buy the car from?

Personal Loan

No

Flex Car Finance (PCP)

Yes

dealership

Fixed Car Finance (HP)

Yes

dealership

 

Could there be extra money used for other purchases?

Personal Loan

Yes

Flex Car Finance (PCP)

No

Fixed Car Finance (HP)

No

 

Are there any excess mileage limits?

Personal Loan

No

Flex Car Finance (PCP)

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

Fixed Car Finance (HP)

No

 

What is the length of the finance term?

Personal Loan

1 to 7 years

Flex Car Finance (PCP)

1 to 4 years

Fixed Car Finance (HP)

1 to 5 years

 

Do you pay the dealer directly?

Personal Loan

We pay you

Flex Car Finance (PCP)

We pay the dealer

Fixed Car Finance (HP)

We pay the dealer

 

When will I own the car?

Personal Loan

Own the car as soon as you purchase

Flex Car Finance (PCP)

Own the car by making the lump sum final payment

Fixed Car Finance (HP)

Own the car at the end of the agreement

 

Is a guaranteed future value for the car included?

Personal Loan

No

Flex Car Finance (PCP)

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

Fixed Car Finance (HP)

No

 

How do the interest rates compare?*

Personal Loan

3.9% APR Representative on personal loans between £7,500 and £25,000

 

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

Flex Car Finance (PCP)

5.4% APR when borrowing between £7,000 and £25,000

Fixed Car Finance (HP)

3.8% APR when borrowing between £7,000 and £25,000

* - 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 a Personal Loan, PCP or HP if you were to buy a car and need finance for £13,000 over 48 months.

Monthly payment examples

 

Representative Example Personal Loan

PCP Finance Example

HP Finance Example

 

Representative APR

Representative Example Personal Loan

3.9% APR

PCP Finance Example

-

HP Finance Example

-

 

APR

Representative Example Personal Loan

-

PCP Finance Example

5.4% APR

HP Finance Example

3.8% APR

 

Total amount of credit

Representative Example Personal Loan

£13,000

PCP Finance Example

£13,000

HP Finance Example

£13,000

 

Annual interest rate (fixed)

Representative Example Personal Loan

3.83%

PCP Finance Example

5.25%

HP Finance Example

3.70%

 

Agreement duration

Representative Example Personal Loan

48 Months

PCP Finance Example

48 months

HP Finance Example

48 months

 

Monthly repayments

Representative Example Personal Loan

48 x £292.55

PCP Finance Example

47 x £175.58

HP Finance Example

48 x £292.00

 

Optional final repayment*

Representative Example Personal Loan

-

PCP Finance Example

£6,850

HP Finance Example

-

 

Total amount payable

Representative Example Personal Loan

£14,042.40

PCP Finance Example

£15,102.26 (includes £10 purchase fee)

HP Finance Example

£14,016 (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.

Made your choice?

Get a Personal Loan quote
Get a Car Finance quote


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).