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Car loans

A car loan is a personal loan which you can use to buy a car with.

What are the benefits?

With a car loan you can benefit from:

  • choosing who you buy your car from; a dealer or private seller
  • modifying or changing your car anytime
  • a loan term with payments to suit your budget.

Things to consider

Choosing your car – are you thinking about a new, or a used car? Read helpful tips in our guides for car buyers’.

Other costs - to keep a car running, you'll need to account for things like insurance, servicing, MOTs, fuel and breakdown cover.

Other borrowing options – Hire Purchase (HP) and Personal Contract Purchase (PCP) are two other options you might like to consider.

Can I apply?

To apply for a car loan, you need to:

  • be aged 18 or older
  • be a UK resident (excluding the Channel Islands and the Isle of Man)
  • have held a Lloyds Bank current account for at least one month
  • be in paid employment or have a regular income and are not a full-time student
  • have a good credit score, with no history of bad credit, such as County Court Judgements (CCJs) or bankruptcy.

Why choose Lloyds?

How it works

  • Borrow between £1,000 and £35,000 over 1-7 years.
  • If your application is approved, the money could be in your account the same day – between 9am-8.30pm, or before 9am the next working day.
  • It's easy to keep track of your loan using Internet Banking or the Mobile Banking app, but you can also phone us or visit us in branch.

Offering you flexibility

  • Repayment holidays - you can apply for up to two repayment holidays per year, subject to approval.
  • Make additional payments with no extra charge.
  • Or pay off your loan early. Just be aware, we will charge up to 58 days' interest for early settlement.

Representative example

You could borrow £10,000 over 48 months with 48 monthly repayments of £225.04. Total amount repayable will be £10,801.92. Representative 3.9% APR, annual interest rate (fixed) 3.83%.

This representative APR applies to loans of £7,500 to £25,000 over 1 to 5 years. Other terms and loan amounts are available at different rates. The maximum APR you could be offered is 29.9% APR.

Loan calculator

Use our handy loan calculator to work out how much your loan payments could be. It will give an indication of monthly payments and APR.

Find out your personalised rate by logging in to Internet Banking.

Get a quote in minutes

Log on to Internet Banking to get a personalised quote.

  • Tell us how much you want to borrow and over how long to get a quote in minutes.
  • This won't affect your credit score.
  • If you go on to apply, you’ll get an instant loan decision online.

Other ways to apply

Apply in branch – our local branch will be happy to help you apply for a loan.

Find your nearest branch 

Apply over the phone – if you have a:  

  • Lloyds Bank Current Account, call us on 0330 123 3890.
  • Credit card, mortgage or existing loan with us, call us on 0330 123 4715

Speak to an adviser 8am-10pm, every day.

Frequently asked questions

  • A car loan is a personal loan that you can use to buy a car.

    Before applying for a car loan, we’d recommend finding the car you’d like to buy first so you know how much you’ll need to borrow.

    Once you know how much you want to borrow, you can use our loan calculator to get an idea of what your monthly repayments may look like. You can also get a personalised quote by logging onto Internet Banking. In most cases, we'll tell you how much you could borrow and if you're likely to be approved, before you apply.

    If your loan is approved, you could have the money in your account the same day. You can then pay the car dealership or private seller in full and pay back the loan to us as per the agreed terms.

     

  • When buying a car with the help of Lloyds Bank, you have three options to choose from – a personal loan, Personal Contract Purchase (PCP) or Hire Purchase (HP).

    Compare your options.

     

  • A car loan is a personal loan, so you don’t have to use it to buy a car. Once the money is in your account, you can use it for just about anything, although there are some restrictions. We can’t issue loans intended for:

    • Any illegal activity. 
    • Speculative purchases, e.g. gambling, investments and share purchases. 
    • Business related purposes. 
    • The purchase or lease of land or property, either in full or in part. This includes deposits.
    • Timeshares/holiday clubs.

    These limits apply whether you want to borrow money for yourself, or to support someone else. For example, you can't take out a loan and give those funds to a family member as a deposit for a house.

     

  • Getting a personalised quote with us does not use a credit check or affect your credit score.

    When you apply for a car loan, we will perform a credit check. This is to help us understand how likely you are to pay the loan back.

     

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).

How much we lend and the rate available are subject to our assessment of your circumstances. You must be 18 years of age or over and a UK resident. You must have had a Lloyds Bank current account for at least one month.