Car loan

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.

Clubcard Prices

Enter your Clubcard number when you apply and if you're accepted you'll get a better rate.

    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.

    Find out more about our car loans below or by visiting our personal loans page.

        Car loan calculator

        This is an illustrative example. The rate you're offered depends on the loan term and amount chosen, as well as your individual circumstances.

        Error: Please select if you have a Clubcard to continue

        Do you have a Tesco Clubcard?

        It's easy to join Clubcard now and apply for a loan today.

        Error: Please let us know what you’ll use this loan for

        What will you use the loan for?

        We will only lend for debt refinancing or debt consolidation if you're 22 or older

          Error: Sorry we only offer between £1,000 and £35,000

          Error: Please make sure the total amount you'd like to borrow is between £1,000 and £35,000

          How much do you want to borrow?

          1000 35000

          Error: Sorry you can only borrow for a period of between 1 and 7 years

          Error: The maximum length of a loan in these circumstances is 3 years

          Error: The maximum length of a loan in these circumstances is 5 years

          Error: The maximum length of a loan in these circumstances is 7 years

          Over how long?

          months (5 years)
          12 120

          Calculator results

          Without a Clubcard

          Clubcard price

          Monthly repayments


          Total repayable

          Clubcard Price
          Possible saving with a Clubcard £ Enter your Clubcard number when you apply

          Representative Example

          Representative 5.2% APR, based on a loan amount of £10,000, over 5 years, at a Fixed Annual Interest Rate of 5.0800% (nominal). This would give you a monthly repayment of £189.07 and a total amount repayable of £11,344.20.

          Why choose a Tesco Bank Car Loan?

          • Clubcard members get a better rate if they're accepted.
          • 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.

            How our car loans work

            About our loans

            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.

            Loans are available to UK residents aged 18 and over. Rates will vary depending on loan amount, term and individual circumstances. Subject to status. The maximum APR you could receive is 34.5% APR.

            Tesco Bank Loans: PO Box 27014, Glasgow, G2 9FE

              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.

                      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.
                        Paying your loan

                        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 make additional payments to my loan?

                              Yes, you can do this at any time at no extra cost. It may help pay off your loan faster, reducing the amount of interest you pay which would save you money overall. You can learn all about what this means for your loan on our page about additional payments.

                                Can I pay off my loan early?

                                You can do this at any time which could save you money on interest charges. Remember to factor in a two-month interest fee when you settle early though. For more on early settlement figures visit our page on paying your loan off early.

                                  Credit checks during application

                                  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.

                                      APR and annual rate of interest

                                      What do we mean by Annual Percentage Rate (APR) and annual rate of interest?

                                      The APR is the total cost of borrowing, as a percentage of the amount you owe, over a year. The APR is calculated from the annual rate of interest plus any upfront fees. It gives you a way to compare the cost of different loan and credit offers.

                                      The annual rate of interest is the amount of interest that will be charged on your loan, as a percentage of the amount you owe, over a year.

                                        How do car loans work?

                                        How do car loans work?

                                        Car loans give you the money upfront to buy the car you have your eye on. It lets you spread the cost over a set number of monthly payments, so you don’t have to save up the full amount in one go. A Tesco Bank Car Loan is a Personal Loan with a fixed interest rate.

                                        Once you have applied and been accepted for a car loan, the agreed amount of money will be released into your bank account. You’ll be expected to pay a certain amount back each month until you have paid off the whole loan plus interest. You’ll be charged interest on the amount you borrowed. The interest rate is fixed for the term of the loan and the rate offered will be dependent on your credit history as well as things like the amount you’re borrowing.

                                          Can I get a car loan with bad credit?

                                          Can I get a car loan with bad credit?

                                          If you have bad credit, you may find it difficult to get a car loan. When providers can see that you’ve struggled with repayments in the past, they may be less likely to want to lend you money. It's sometimes possible to get a car loan if you have bad credit, although you may have to pay higher interest rates.

                                          If you have a bad credit score or don’t have much credit history, there are ways you can improve your score before applying for a car loan. You can also check whether you’re likely to be approved for a car loan without affecting your credit score, by using our eligibility checker .

                                            Is a car loan right for me?

                                            Is a car loan right for me?

                                            A car loan might be right for you if you’re hoping to get on the road as quickly as possible and you know you’ll be able to afford your monthly repayments.

                                            Our car loans have a fixed interest rate, so you can plan your payments in advance and know exactly how much you’ll be paying for your loan in total. They offer a way of breaking the total cost of the car purchase into smaller regular repayments.

                                              Contact us - we're here to help

                                              Need a few questions answered? Our UK-based teams are here to talk to you seven days a week. Lines are open Monday to Friday, 8am-8pm, and Saturday to Sunday, 9am to 5pm.