What is a car loan?
A car loan (or personal loan from a bank or building society) is another car finance option. You get a lump sum of money which can be used to pay for a car outright, and you’ll need to repay the bank over an agreed number of months.
Read our guide about the different finance options available and how to choose the one that is right for you
Related glossary terms
PCP - personal contract purchasePersonal contract purchase (PCP) is a type of vehicle finance. PCP finance usually sees you pay a portion of the total amount upfront as a deposit, then a series of monthly payments, often over a two-to-four-year period.HP - hire purchaseHire purchase (HP) is a type of vehicle finance and lets you finance the entire vehicle cost over a fixed period.PCH - personal contract hirePersonal contract hire (PCH) is a form of vehicle finance, widely known as leasing. This means you essentially take out a long-term rental agreement on the car, with an initial rental payment and fixed monthly payments usually between one and four years.