Car loans to get you moving

Whether you’re looking to buy a new or used car, a Tesco Bank personal loan could give you a lower interest rate than a car dealer’s finance plan.

Using a personal loan to buy a car:

  • If you take out a loan to pay for a car, it means you’ve got the cash up front to help you negotiate a good price with the seller, and the car’s yours from the off.
  • Our fixed interest rates mean you know exactly how much you will need to repay each month and how much interest you will pay in total.

Other car ownership costs to consider:

  • Although a Tesco Bank car loan can help spread the actual cost of the car, it’s important to think about the other costs that come with owning a car. Car insurance, regular servicing, repairs and fuel can all add up.
  • Knowing what you can afford can really help when you’re shopping around for a good deal on a car. Your budget will determine the make and model you can buy and put you in the driver’s seat when negotiating the price.

Representative APR

Representative 2.8% APR
On car loans from £7,500 - £25,000
For terms 12 - 60 months
        woman washing a car

        Already have a Tesco Bank Loan?

        If you're thinking about borrowing more, we're here to help.

        Why choose a Tesco Bank Car Loan?

        If you’re looking to compare personal loans for your next car, there are a few things to check.

        Before you apply for a loan think about how much you’ll borrow, how long you’ll need to repay the loan and what the interest could cost.

        Our loans are available to UK residents aged 18 and over and are subject to status. The interest rates we offer vary, depending on the loan amount and your personal circumstances.

        We have a great low rate of 2.8% APR representative on loans from £7,500 to £25,000 for terms 12 - 60 months.

        When you apply for a car loan from us:

        • We’ll give you 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 if approved, by digitally signing.
        • Take a two-month payment break at the start of your loan, if eligible. Please note, interest will accrue during the payment break and your loan term will be extended by 2 months.
        • You can choose which day of the month you’ll make your fixed monthly payment.
          woman washing car tyre

          How our loans work

          About our loans

          Loans are available to UK residents aged 18 and over. Rates will vary depending on loan amount, term and individual circumstances. Subject to status.

          A loan gives you the money you need upfront and lets you spread the cost of paying it back. So whether it's a special holiday, a car or a new kitchen, a personal loan can make it more affordable.

            We offer unsecured personal loans

            This means that if we decide to lend you money, it won't be secured on your home, car or other assets. You can then spend this money on the things you need.

              Available repayment periods

              You can apply for a loan term from 12 to 120 months depending on the loan amount and purpose. Just remember that the maximum repayment period might be lower for certain loan purposes.

                Borrow exactly what you need

                We offer loans to cover costs big and small and you can be specific about the amount you need, down to the pound.

                  How interest is charged

                  The interest rate is fixed for the life of the loan.

                  At the beginning of the loan we work out the interest you will pay over the whole length of your loan and add this to your loan amount. We calculate your interest charge by applying interest at a monthly rate based on the APR to the balance of your loan, as reduced by your monthly repayments. We add this to the loan amount and then divide this total by the number of monthly repayments.

                  The loans calculator will give you an example of what it might cost you based on the loan amount and term you want. However, the interest rate we offer may be higher depending on your individual circumstances. The minimum rate we offer is 2.8% APR and the maximum rate we offer is 27.5% APR.

                    Representative example

                    Loan amount


                      Monthly repayments


                        Length of agreement

                        60 months

                          Total amount repayable



                            2.8% APR

                              Annual Rate of Interest (nominal)


                                The representative APR applies to loans of £7,500 to £25,000 over 12 to 60 months. Other terms and loan amounts are available at different rates.

                                Getting your loan

                                How soon can I get my loan?

                                If you've been approved, you'll receive some important documents within five days, which you'll need to check, sign and return to us.

                                If you apply online, you’ll get an immediate decision and, if eligible, can digitally sign your loan agreement with us. We’ll then use Faster Payments to send the money directly to your bank account.

                                Once we're happy with the information you've sent, we'll fully approve your loan and pay the money into your bank account.

                                  Payment break

                                  Take a payment break

                                  Sometimes it can really take the pressure off if you don’t have to start repaying your loan straight away, especially if you’ve got extra expenses to cover.

                                  So when you apply for a loan, you might be eligible to apply for a payment break before starting your monthly loan repayments.

                                  • This break is only available at the start of your loan.
                                  • If your application for this option is successful, then the first payment would be taken the third month after the issue of the loan.
                                  • Interest will be charged during the payment break and your overall loan period will be extended by two months, which means that you will pay an extra two months' interest.
                                  • Your offer documentation will explain the terms of the payment break, so please read everything carefully.
                                  Making repayments

                                  Your payment is made by monthly direct debit from the account the loan is paid into. Your first payment will be made one month after issue of the loan on the date you have chosen in your application, unless you apply for an initial payment break (see under Payment break tab).

                                    You'll always know what you have to pay

                                    All Tesco Bank loans are fixed rate. This means your monthly Direct Debit payments will be the same every month until your loan is paid off. Nice and simple.

                                      What happens if a payment is late?

                                      We'll charge £12 each time a loan payment is late and £12 when a default notice is issued.

                                        Can I pay my loan back early?

                                        Yes. But you will be charged up to two months' interest if you choose to settle your loan early.

                                          Find out how much a car loan could cost

                                          We offer a range of loans from £1k to £35k over terms from 1 to 10 years (interest rates vary). Use our loan calculator to quickly work out how much a loan could cost and start your application.

                                          Important information

                                          Credit checks during application

                                          We'll carry out a credit reference search when you apply for a loan and a credit score will be calculated based on the information you enter and your credit reference information. This will help us make a decision on whether or not we're able to lend to you. We'll then let you know the decision and what the status of your application is.

                                            Who provides these loans

                                            Our loans are provided by Tesco Bank, PO Box 27014, Glasgow, G2 9FE.