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 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:

Personal Loan

Flex Car Finance (PCP)

Fixed Car Finance (HP)

Are there restrictions where I buy the car from?

No

Yes
dealership

Yes
dealership

Could there be extra money used for other purchases?

Yes

No

No

Are there any excess mileage limits?

No

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

No

What is the length of the finance term?

1 to 7 years

1 to 4 years

1 to 5 years

Do you pay the dealer directly?

We pay you

We pay the dealer

We pay the dealer

Is the finance secured against the car?

No

Yes

Yes

Is a guaranteed future value for the car included?

No

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

No

How do the interest rates compare?

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

5.9% APR when borrowing between £3,000 and £60,000

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

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

3.9% APR

-

-

APR

-

5.9% APR

3.8% APR

Total amount of credit

£13,000

£13,000

£13,000

Annual interest rate (fixed)

3.83%

5.72%

3.70%

Agreement duration

48 months

48 months

48 months

Monthly repayments

48 x £292.55

47 x £241.36

48 x £292.00

Optional final repayment*

-

£3,602

-

Total amount payable

£14,042.40

£14,945.92 (includes £10 purchase fee)

£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.

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.