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.
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:
|
Personal Loan |
Flex Car Finance (PCP) |
Fixed Car Finance (HP) |
---|---|---|---|
Are there restrictions where I buy the car from? |
Personal LoanNo |
Flex Car Finance (PCP)Yes dealership |
Fixed Car Finance (HP)Yes dealership |
Could there be extra money used for other purchases? |
Personal LoanYes |
Flex Car Finance (PCP)No |
Fixed Car Finance (HP)No |
Are there any excess mileage limits? |
Personal LoanNo |
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 Loan1 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 LoanWe 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 LoanOwn 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 LoanNo |
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 Loan3.9% 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)6.4% APR when borrowing between £3,000 and £60,000 |
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.
|
Representative Example Personal Loan |
PCP Finance Example |
HP Finance Example |
---|---|---|---|
Representative APR |
Representative Example Personal Loan3.9% APR |
PCP Finance Example- |
HP Finance Example- |
APR |
Representative Example Personal Loan- |
PCP Finance Example6.4% APR |
HP Finance Example3.8% 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 Loan3.83% |
PCP Finance Example6.19% |
HP Finance Example3.70% |
Agreement duration |
Representative Example Personal Loan48 Months |
PCP Finance Example48 months |
HP Finance Example48 months |
Monthly repayments |
Representative Example Personal Loan48 x £292.55 |
PCP Finance Example47 x £223.35 |
HP Finance Example48 x £292.00 |
Optional final repayment* |
Representative Example Personal Loan- |
PCP Finance Example£4,748 |
HP Finance Example- |
Total amount payable |
Representative Example Personal Loan£14,042.40 |
PCP Finance Example£15,245.45 (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:
- 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.
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).