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Car loans

If you’re looking to buy a car, there are a few finance options to choose from.

You could apply for a loan to buy a car or find a Personal Contract Purchase or Hire Purchase provider through Aro.

Our lowest rate: 6.2% APR representative for loans between £7,500 and £25,000 for 1 - 5 years.

Why choose a car loan with TSB?

Choose your amount

Apply for £1,000 to £25,000. Or £300 to £50,000 for TSB current account customers

Choose your term

Repayment terms from 1 to 5 years. Up to 7 years for existing TSB customers

Make a decision

A personalised quote and a decision in minutes without affecting your credit score

Try our car loan calculator

Our car finance calculator can help give you a steer on how much your monthly car payments could be.

You’ll see the annual interest rate, representative APR, monthly repayments, and the total repayable amount.


Car finance with Aro


If a car loan isn’t right for you, Aro can help you find the right finance deal. They scour the market for Personal Contract Purchase or Hire Purchase deals that match your needs.

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To apply for a loan, you'll need to:

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Be a UK resident

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Be over 18, or over 21 if you apply online

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Be employed or have a regular income

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Earn at least £850 per month after tax

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Not have any recent CCJs, Credit Defaults or Bankruptcies, and be up to date with any TSB debts

How do I apply for a car loan?

Already a TSB customer?

If you’re an existing TSB customer the quickest way to apply is to log in to get a quote.

How do I apply for a car loan?

New to TSB?

It's easy to get a personalised quote and apply online.


Book an appointment to apply for a car loan in your nearest branch or over the phone.

Borrow well

If you’re looking to borrow money, read our guide to borrowing sensibly.

Fraudsters will often try to trick you into taking out a loan

If you’re applying today: to make an investment, to help the National Crime Agency or the police to catch a criminal, or to send money to someone, even someone you know, STOP!

These are common frauds and you may be about to become a victim. For help and support, please call our fraud team on 0800 096 8669.

Car loan FAQs

To be eligible for the TSB car loan, you must:​

  • Be 18 or over
  • Be a UK resident 
  • Hold a TSB current account if applying for a loan between £300 - £999 or 25,000 - £50,000

There are some benefits to choosing a car loan over car finance. If you choose to buy a car using a personal loan, you borrow money from a bank, meaning the dealer is not involved in the financing. This means you don’t need to negotiate with the dealer, and they don’t have any influence over mileage limits, which can be part of car finance contracts. If you exceed the mileage limit with car finance, you may have to pay a premium per mile.

As you will own the car straight away with a car loan, you don’t have to give it back to a dealership or lender. You can keep the car for as long as you like and even sell it. You will still need to repay all the loan, however. With car finance, you will not own the car until you’ve paid off all the finance. If you change your mind about the car, you will also need to pay a termination fee to get out of the contract. Whereas with a car loan, you can choose to sell the car. 

With a personal loan, you don’t need a deposit when buying the car, as you can borrow an amount to make the payment upfront. However, this can mean the monthly repayments for the loan will be higher, as you would have borrowed more money. ​

If you are unable to make the car loan repayments, you won’t lose the car. The car loan is unsecured, meaning the lender can’t take the borrower’s car or other assets. However, you will still be taken to court. ​

You can still apply and be accepted for a loan to buy a car, even with bad credit. People with good credit however are offered lower interest. ​

With TSB’s car loan, you can borrow up to £50,000, and repay it over 1-7 years. As the loan is not tied to the car, you can borrow more or less than its value. ​

When applying for a car loan, the lender will require information on your income, assets, employment details, monthly expenses and credit history.

You will also need to know how much you would like to borrow, as well as for how long.

There are several ways to lower car loan repayments. First of all, opting for a cheaper car will mean the repayments will be lower. Also, choosing a loan with a low interest rate will result in lower monthly repayments.

If you are able to pay a larger deposit upfront, this means you need to borrow less for the car loan, which lowers the repayments.

This will depend on your credit score. The higher your credit score, the lower the APR and monthly repayments. The interest rate will also depend on how much you want to borrow, and the period of time you want to borrow it.

If the base UK interest rate changes, this will not affect car loan repayments. Personal loans have a fixed rate, which does not change whether rates rise or fall.

Your monthly car loan repayments will depend on however much you borrow and how long would like to pay it back. Use our Car Loan Calculator further up the page to find out.

If your online car loan application is accepted, the money can be sent to your account in a couple of hours. If you apply before 6pm and have held a TSB current account for more than 3 months, the money should be in your account the same day. If you apply after 6pm, the money should be in your account the next working day (excludes Sundays and bank holidays).

It is possible to repay a car loan early. Although you may still be charged some interest to do so. If you would like to repay a car loan early, you can ask the lender for a settlement figure. This figure details the amount needed to completely clear the loan and may include an early repayment charge.

If you purchase a faulty vehicle using a car loan, you will need to request for the car dealer to repair the issue, or replace the vehicle if necessary. Under the Consumer Rights Act, the dealer must ensure the car is in the condition as it was described and usable.

If you purchased the vehicle from a private seller, it can be more difficult to get them to repair the vehicle.

Important information

The representative APR is the Annual Percentage Rate of charge. You can use it to compare the overall cost of credit between different lenders.

TSB adheres to The Standards of Lending Practice which are monitored and enforced by the LSB:

To read more about our lending commitments to you, please click here to read the leaflet.