
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.
Get a car finance quote Get a car finance quoteImportant 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.
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:
|
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 LoanNo |
Could there be extra money used for other purchases? |
Hire Purchase (HP)No |
Personal Contract Purchase (PCP)No |
Personal LoanYes |
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 LoanNo |
What is the length of the finance term? |
Hire Purchase (HP)1 to 5 years |
Personal Contract Purchase (PCP)1 to 4 years |
Personal Loan1 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 LoanWe 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 LoanOwn 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 LoanNo |
How do the interest rates compare?* |
Hire Purchase (HP)5.7% 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 Loan5.9% 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 |
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.
|
HP Finance Example |
PCP Finance Example |
Representative Example Personal Loan |
---|---|---|---|
Representative APR |
HP Finance ExampleN/A |
PCP Finance ExampleN/A |
Representative Example Personal Loan5.9% APR |
APR |
HP Finance Example5.7% APR |
PCP Finance Example7.9% APR |
Representative Example Personal LoanN/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 Example5.52% |
PCP Finance Example7.61% |
Representative Example Personal Loan5.75% |
Agreement duration |
HP Finance Example48 months |
PCP Finance Example48 months |
Representative Example Personal Loan48 Months |
Monthly repayments |
HP Finance Example48 x £302.67 |
PCP Finance Example47 x £195.93 |
Representative Example Personal Loan48 x £303.80 |
Optional final repayment* |
HP Finance ExampleN/A |
PCP Finance Example£6,850 |
Representative Example Personal LoanN/A |
Total amount payable |
HP Finance Example£14,538.16 (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:
- Pay the optional final repayment and own the car
- Hand back the car (return conditions apply) without paying the optional final repayment.
- Part exchange the car subject to settling your existing finance agreement. New finance agreements are subject to status.
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).