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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.
Warning: late repayments can cause you serious money problems. See our debt help guides.
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.
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.
Halifax personal loans are unsecured – meaning they’re be based on creditworthiness, rather than the use of property or other assets as collateral.
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.
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:
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.
Halifax does its best to help anyone that can afford to finance a car. However you will need to meet the following criteria:
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Halifax’s FlexiCard aims to offer the certainty of a fixed-term personal loan, with the flexibility of a credit card.
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