Personal Loans explained
A personal loan is separate borrowing used to purchase a car. The customer normally buys and owns the vehicle from the point of purchase while repaying the lender separately.
How repayments work
You borrow a fixed amount from a lender and repay it in monthly instalments over an agreed term, with interest and charges set out by the lender.
Vehicle ownership
Because the loan is separate borrowing, you normally buy and own the vehicle from the point of purchase, and the car isn’t at risk under the loan in the same way as a secured finance agreement.
Eligibility
Eligibility and rates depend on the lender and your circumstances, including your credit history and affordability.
Things to consider
A personal loan is one way to fund a car, but it isn’t the only one. Whether it suits you depends on your circumstances — compare the total cost of any option before deciding. We provide this as general information, not a recommendation.
We provide this information to help you understand your options. We don't currently offer or arrange personal loans, and we don't recommend any particular lender or product.