Car loans
Looking to upgrade your car or switch to an electric vehicle? Whether you’re in the market for a new or used car, a personal loan could help you spread the cost.
Log in to get a quoteImportant information. How much we lend and the rate we offer are dependent on our assessment of your circumstances. You must be age 18 or over and a UK resident. You must have had a Lloyds current account for at least 1 month.
Why get a car loan?
A personal loan could help you manage the cost of buying a car and spread your repayments. There are several potential advantages.
You might like to consider other car finance options to find the right one for you.
How Lloyds personal car loans work
- Borrow between £1,000 and £50,000. You can choose to pay this back over a repayment term of 1 to 7 years. The longer the term, the more interest you’ll pay.
- 7.4% APR representative. This applies to loans from £7,500 to £25,000 over 1 to 5 years. We offer other loan amounts and terms, with rates from 6.0% APR, subject to status.
- Money when you want it. If your loan application is approved, the money could be in your account the same day, 9am to 8.30pm, or by 9am the next day.
- Fixed interest. With a fixed rate loan, you know exactly how much you’ll be paying each month. This can help you plan and budget for your repayments.
- Repayment holidays. Subject to approval, you can apply for up to 2 repayment holidays of 1 month each, provided they are not taken back‑to‑back, within a rolling 12-month period. Just be aware that daily interest will still be charged and your loan term will be extended, which will increase your overall borrowing costs.
- Make extra payments at any time. This could help to reduce your loan term and borrowing costs. We won’t charge extra for making extra payments.
- Pay off your loan early. You can repay your loan in full if you want to. Just be aware we might charge up to 58 days’ interest for early settlement.
- Manage your loan online. Keep track using online banking or the Lloyds app.
Representative example
You could borrow £10000 over 48 months with 48 monthly repayments of £240.21. Total amount repayable will be £11530.08. Representative 7.4% APR, annual interest rate (fixed) 7.16%.
This representative APRRepresentative APRThe representative APR is the rate that at least 51% of people are expected to receive when taking out a loan within the stated amount and term range. applies to loans of £7,500 to £25,000 over 1 to 5 years. Other terms and loan amounts may apply at different rates. The maximum APR is 29.9% APR.
Who can apply for a car loan?
To apply for a car loan, you need to:
- be aged 18 or older
- be a UK resident (not including Channel Islands and the Isle of Man)
- have held a Lloyds current account for at least 1 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.
Get a quote for a car loan
Tell us how much you want to borrow towards a new or used car and for how long. Getting a quote won’t affect your credit score.
If you’re happy with your quote, you can complete your car loan application and get a decision online. If approved, you could receive the money the same day.
Let’s look at the details
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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. Then you'll know how much to borrow.
You can get a personalised quote by logging in to online banking. Usually, 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 agreed in the terms.
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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:
- Gambling.
- Investments, such as stocks, shares and crypto currency.
- Business reasons.
- Land or property – buying, leasing or paying a deposit.
- Timeshare or Holiday clubs.
- Anything illegal.
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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. Learn more about how credit checks work.
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Self-employed people can still get a car loan, though the process can be a little tougher. You might be asked to share your financial records, including tax returns and business statements. A good credit score can also make approval easier.
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As with any personal loan, you’ll need to pay interest on your car loan. This is the cost you pay for borrowing money from a lender. It’s usually worked out as a percentage of the amount you owe. Your monthly payments will include an amount of interest, spreading the borrowing costs across your loan term.
Lenders usually show an annual percentage rate (APR) to help you understand and compare potential borrowing costs.
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Looking for support?
Visit the help and guidance hub to learn more about personal loans and how to manage them.
