Rates below are indicative and change. The rate that applies to you is the one in your formal offer, which also states the total amount repayable and every fee. Lending is subject to status and affordability.
Indicative rates
Vehicle age is the biggest single factor, because the car is the security. A newer car holds its value more predictably, and the rate reflects that.
| Vehicle | From | Maximum term | Typical deposit |
|---|---|---|---|
| New vehicle | 3.99% | 84 months | 10% |
| Used, under 3 years old | 4.49% | 72 months | 10% |
| Used, 3 to 7 years old | 5.49% | 60 months | 15% |
| Electric and hybrid | 3.49% | 84 months | 10% |
| Refinance of an existing loan | 4.29% | Remaining term | Existing equity |
| Light commercial vehicle | 5.19% | 60 months | 20% |
Annual rates. The lowest rate in each band is available to applicants with a strong credit history and a larger deposit.
Electric is cheaper for a reason
Lower rates on electric and hybrid vehicles reflect resale demand and running costs, not a subsidy. If the rate is the only reason you are considering one, price the whole ownership cost first.
What decides your rate
- Deposit
- The larger the deposit, the less we lend against a depreciating asset. This is the factor most within your control.
- Vehicle age and mileage
- Older and higher-mileage vehicles carry shorter maximum terms and higher rates, because the security falls away faster.
- Term
- A longer term lowers the monthly payment and raises the total interest. It can also leave you owing more than the car is worth.
- Credit history and affordability
- Conduct on existing credit, income stability and committed outgoings. This decides whether we can lend at all, and at the margin it moves the rate.
- Where you buy
- Dealer, private sale or auction. Private and auction purchases have extra checks because there is no dealer warranty behind the car.
Fees
| Fee | Typical basis |
|---|---|
| Arrangement fee | A flat amount, disclosed before you accept. It can be added to the loan, which costs more overall. |
| Early settlement | Interest is recalculated to the settlement date. A settlement figure is issued free on request. |
| Late payment | A flat charge, plus the effect on your credit file, which is the more expensive part. |
| Vehicle inspection | On private and auction purchases only, where a condition report is required. |
| Title and registration | Payable to the relevant authority, not to us. |
Model it before you commit
The calculator on the vehicle finance page uses the same amortisation used in your offer. Put your real deposit and a realistic rate into it, then look at the total repayable rather than the monthly figure.
- 1Model the payment at the rate for your vehicle band, not the headline rate.
- 2Compare a 48-month and a 72-month term on the same car. The difference in total interest is usually the whole argument.
- 3Add insurance, road tax and servicing. Finance is rarely the largest line in the first year.
- 4Get a decision in principle before you negotiate. A buyer with funding agreed is in a stronger position.
Documents you may also need
Get Pre-Approved
A decision in principle before you shop: what it tells you, what it does not commit you to, and what we need to give you one.
Vehicle FinanceRefinance Your Vehicle
Move an existing car loan to us: when it saves money, when it quietly costs more, and exactly how to check which applies to you.
Vehicle FinanceBuying Through a Dealer
How dealer purchases, part-exchange and private sales work with our finance — and how to tell whether the dealer offer or ours is genuinely cheaper.
This document was last updated on 1 August 2026. We publish the current version here at all times; superseded versions are available on request.
If anything on this page is unclear, write to us and we will explain it.