Personal loans for buying a car

Tesco Bank loans can help get you moving. Whether you're looking to buy your first car or you're in the market for a new model a personal loan could give you a lower interest rate than dealership repayment plans. 

Loans and repayment plans may seem like a great way to get your new car quicker, and with less expense at the outset, but it's important to consider whether or not a loan is right for you. 

This page is full of information to help you make an informed decision and get you on the road.

Other car ownership costs to consider

Before you start shopping around for your new car, it’s important to remember that there’s more to owning a vehicle than the initial purchase. You need to have car insurance, save money for regular maintenance and consider petrol costs.

It's worth factoring those monthly or yearly costs into your budget before buying a vehicle from a dealership or applying for a loan. These costs could help determine what make and model you buy, and whether or not to consider a second-hand car instead.

How to get a personal loan

If you’re unsure about what’s required to get a personal loan for your car, have a look at our application checklist to give you an idea of what the process may include - and always remember, there is a wealth of information online to help you decided if a loan is the option for you.

Eligibility:

  • Be aged between 18 and 74
  • Be in employment with no probationary period, or have regular income, e.g. pension
  • Have lived in the UK for at least 3 years
  • Have a UK personal current account

Information to have on hand when filling out the application:

  • Your current account bank sort code and account number
  • Details of your regular monthly income after tax
  • Details of any existing loan balances and monthly repayments
  • Details of your mortgage or rent payments
  • Your address details for the past three years
  • Your current employer's address details (if applicable)

Why choose a Tesco Bank Loan?

If you’re looking to compare personal loans, there are many factors to consider.

For starters, think about the amount you want to borrow, over what term you want to pay it back, and the interest rate that applies.

We have a great low rate of 3.1% APR representative on loans from £10,000 - £25,000 for terms 1-5 years. 

Loans available to UK residents and over 18s only. Subject to status. Rates will vary depending on loan amount and individual circumstances.

Here’s some extra information on what Tesco Bank customers can expect when applying for a loan with us.

  • Receive an instant decision when you apply online
  • If you’re eligible and apply online, you could get the loan transferred to your account by the next day, thanks to our digital signatures feature
  • Take a two-month payment break at the start of your loan, if eligible. Please note interest will accrue during the payment break
  • Choose which day to make your fixed monthly payment

To fully understand what this could mean for you, have you visited our loan calculator

Already have a loan with us?

Even if you already have a Tesco Bank loan, you may have the option to borrow more.