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Halifax Car Loans

Whether you’re planning to buy a hot hatch, or something to fit the whole family, Halifax could help you spread the cost with manageable monthly payments.

If you’re reading this, then chances are that like the rest of us, buying a new car outright from savings isn’t an option. Halifax offers unsecured, fixed rate car loans as well as two additional finance options. Anyone can apply for a Halifax personal loan, but its finance options are only open to Halifax current account holders.

Existing current account holders can also receive specific perks if they opt for a Halifax personal loan.

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There are various different ways you can finance the purchase of a car. Each option will almost certainly require you to commit to monthly payments, so make sure you carefully work out your budget and choose an affordable option. Don’t forget to take into consideration other costs you’ll need to pay out, such as road tax, insurance and MOT, before making your final decision. Late repayments will damage your credit score, making it harder to source finance in the future.

Learn more about the different ways you can finance a new or used car purchase.

How can Halifax help me finance a vehicle purchase?

Unlike some other vehicle finance options, personal loans give you the freedom to buy any car from any vendor, and you’ll own the car outright from day one.

Because you’re paying the vendor in full, there is no deposit involved. However, if you can afford to cover part of the purchase from savings, and borrow less, then you’ll pay less in interest.

Key features for Halifax current account holders

    • Loan amounts from £1,000-£50,000.
    • Loan terms from 1-7 years.
    • Fixed interest rate. Your monthly payments will remain the same for the term of your loan.
    • Get a quote in as little as 1 minute. With no credit searches.
    • You could receive the funds in minutes. Subject to approval.
    • Option to apply for a “Clarity” loan. Benefit from preferential early repayment terms.
    • Buy from a seller of your choosing.
    • No deposit required. Although if you can fund some of the purchase yourself, and borrow less, then you’ll save on interest.
    • Own the vehicle outright from day one.
    • End your agreement by paying off the total due. You could potentially save interest by doing this.

Key features for non- Halifax current account holders

  • Loan amounts from £1,000-£25,000.
  • Loan terms from 1-7 years.
  • Fixed interest rate. Your monthly payments will remain the same for the term of your loan.
  • Get a quote in as little as 10 minutes.
  • You could receive the funds within 5 working days. Subject to approval.
  • Buy from a seller of your choosing.
  • No deposit required. Although if you can fund some of the purchase yourself, and borrow less, then you’ll save on interest.
  • Own the vehicle outright from day one.
  • End your agreement by paying off the total due. You could potentially save interest by doing this.

Halifax personal loans are unsecured – meaning they’re be based on creditworthiness, rather than the use of property or other assets as collateral.

Halifax’s Fixed car plan is a Hire Purchase (HP) agreement. Halifax pay the dealership directly and effectively lease the car to you for a set period, after which you take ownership. This form of finance is designed for people looking to own the car after the last repayment. While Halifax finance both new and used cars, there are some restrictions based on the make/model, age and mileage of the car with this option.

Key features

  • Finance a car worth between £7,500 and £60,000.
  • Only available to current account holders with online banking.
  • Choose a car from the majority of UK dealerships. Login to online banking to see which dealers are available.
  • Fixed monthly repayments. You’ll pay the same amount each month for the term of the agreement.
  • GQuick online quote. Simply type in the registration of the car you’d like to buy.
  • Choose your deposit and repayment term. A larger deposit will reduce your monthly repayment.
  • Quick process. Halifax transfer the finance as soon as you’ve signed the legal documents.
  • Once you’ve made the final payment the car is yours to keep.
  • No annual mileage limit.

How it works

Halifax Flex is a Personal Contract Purchase (PCP) agreement. Here you pay off the depreciation (plus interest) rather than the whole value of the car. Paying the depreciation means you’ll pay a lower monthly repayment than with a hire purchase agreement, however, it also means that if you want to buy the car at the end you’ll have to pay a larger “balloon payment”.

PCP’s can be ideal for people who like to update their car every few years and don’t mind not owning their vehicle.

Key features

  • Finance a car worth between £7,500 and £60,00.
  • Only available to current account holders with online banking.
  • Choose a car from the majority of UK dealerships. Login to online banking to see which dealers are available.
  • Lower fixed monthly repayments. Your monthly payments will be lower than with a hire purchase agreement.
  • Quick online quote. Simply type in the registration of the car you’d like to buy.
  • Choose your deposit and repayment term. A larger deposit will reduce your monthly repayment.
  • Quick process. Halifax transfer the finance as soon as you’ve signed the legal documents.
  • Option to keep your car at the end of the agreement. Pay a final “balloon payment” or simply return the vehicle (fees may apply).
  • Annual mileage limit. Extra fees will apply if you exceed this.
  • Extra fees may apply. If the car isn’t returned in good condition, you will be charged additional fees.

How Halifax personal loans work

  1. Decide on a loan amount and term. Use Halifax’s online calculator to find an amount that works for you.
  2. Fill in the application form. If you decide to go for either of Halifax’s two finance options you’ll need to apply online.
  3. Await your decision. Halifax will assess your application by running affordability and credit checks.
  4. Receive your loan. Once you’ve been accepted and signed the agreement your loan or finance will be transferred immediately.

How much will I pay?

The cost of your car finance will depend on factors like how much you want, how long you want it for and your credit score, but here are some general guidelines:

  • Loan size. The amount you borrow can affect the interest rate you pay.
  • Long term finance. Generally speaking, if you choose a longer repayment period, you’ll pay less each month but more in total.
  • Short term finance. Generally speaking, paying back your finance over a shorter period will mean you pay more each month, but less in total.
  • Credit rating. A better credit score will mean you have to pay less in interest.
  • Deposit size. If you choose a finance option then paying a larger deposit will cut your monthly repayments and the total amount of interest you pay.
  • Current Account. If you’re a Halifax current account holder you could benefit from preferential early repayment terms on your loan. You must be a current account holder for either of Halifax’s finance options.

What is APR?

If you’re comparing any credit-based products, it won’t be long before you’ll come across the Annual Percentage Rate (APR). This figure is designed to provide an annual summary of the cost of a loan. It takes into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan.

All lenders must calculate the APR of their products in the same way and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison, alongside other features such as the total amount payable.

Bear in mind, however, that lenders are only obliged to award this rate to 51% of those who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.

What criteria must I meet?

Halifax do their best to help anyone that can afford to finance a car. However you will need to meet the following criteria:

  • Age. You must be aged 18 or over.
  • Address. You’ll need to provide 3 years of address details.
  • Income. You must have a regular income. Benefits are not considered an acceptable source of income.
  • Education. You won’t be accepted if you’re in full time education.
  • Credit history. You must not been declined for credit in the last month or have a history of bad credit.

What is Halifax good and bad at?

  • Broad selection. Unlike many banks Halifax offer finance options as well as a loan.
  • Car availability. Take a personal loan and choose any car, or pick from most major dealerships with a finance option.
  • Stricter application. Halifax and other major banks are typically less likely to provide finance to customers with poor credit ratings than specialist providers such as < href=”https://www.finder.com/uk/car-loans/get-me-car-finance”>Get Me Car Finance.

Frequently asked questions

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