Personal loans for cars

Got your heart set on your dream car? Or perhaps you just need a little more space in the back?

A personal loan from Sainsbury’s Bank could help you cover the cost of a new or used car. We offer low-interest loans for cars ranging from £1,000 to £40,000 if you’re a Nectar member, non-Nectar members can borrow up to £25,000.

Why choose Sainsbury’s Bank for your car loan?

  • 2.8% APR representative for Nectar members, when you borrow £7,500 - £25,000 for 37-60 months  
  • You can pay back your loan over 1-7 years with manageable, fixed monthly instalments  
  • You can borrow between £1,000 - £40,000 if you’re a Nectar member, non-Nectar members can borrow up to £25,000  
  • No application or arrangement fee
  • You could get your money in as little as 2 hours, or the next business day, if you’re accepted  
  • Our loan application is quick and easy to complete, you can sign your agreement online, and upload any documents we might need

How much can I borrow?

Our car loans calculator can steer you in the right direction. You can quickly work out what your monthly payments could be – and how much you’ll repay in total.

In just a few clicks, you can find out your interest rate and how likely you are to be accepted – without harming your credit score.

All quotations given are for illustrative purposes only.   

Use our loan calculator

Applying for a joint loan application? Please note, your application may take longer to process.  

Find the right loan for you

You might need £5,000 or less for a used car or you might be planning to spend £40,000 for a bigger model? Either way, we've got the loan to suit your needs.

Compare our loan options

If you’ve got a question about our loans – our support section is a great place to start.

Things to consider

Buying a car is a big decision, from finding the right model to financing the cost of your car with a personal loan. Here are some things you should think about before you spend your hard-earned money.

Our loan terms

Before you take your car for a test drive, it’s a good idea to do your research about finance and bank loans. Take the time to understand how our loan terms work, lending criteria and things you should think about before you apply.

Find out more

Ways to pay for a car

There are many ways to cover the cost of your new car. We’ve explored a few below, read through to find the option that best suits you.

Car loans

Taking out a loan for your car is a helpful way to cover the costs of purchasing a used or new car. You can take out a bank loan to pay for your car, or if buying from a dealership, you may be offered car finance directly.

Securing a loan means you become a cash buyer, which often helps with any negotiations. There will be no set up fees and once you’ve paid off your loan, you own the car at the end.

Use our car loan calculator to help figure out how much you’ll pay in total.

Personal contract purchase

Other ways you can buy a car include personal contract purchase, which you can arrange if you choose to buy through a dealership. This usually involves paying a deposit for the car followed by a series of regular monthly instalments.

You won’t fully own the car until you make the final personal contract purchase ‘balloon’ payment. A balloon payment is when you pay more at the end of your loan term than earlier monthly payments. It allows you to reduce your monthly fixed payment to an affordable amount by agreeing to pay more when your loan comes to an end.

Leasing your car

You can also lease your car, which means you agree to a long-term rental where you pay a monthly fee in exchange for a car. The payment is fixed but you never own the car and when the lease is up, you return it and you can upgrade to a new model.

Trade in

If you are looking for a car upgrade, trading in your old car against a new one is a popular option. You are effectively part-exchanging your existing vehicle for the new one. The dealership will take the value of your old car off the price of your new one. A loan can then be used to pay the difference.

Running costs of your car

It’s easy to get caught up in the purchase price, but you might also want to consider typical car running costs.

Car insurance

Age and claim history are among the many factors that can make car insurance one of the biggest expenses. For more information, check out our car insurance options.


Different types of cars have different tax rates, you can check the GOV.UK tax rates table for an up-to-date list.


Cars more than three years old need an MOT test every year, the maximum cost that test centres can charge can be found on GOV.UK.


Regular health checks on your car can save you both trouble and money. Read our guide for tips on car maintenance.

Miles Per Gallon (MPG)

MPG is the standard measure used to show how many miles a car will travel per gallon of fuel. Choosing a car that offers good MPG or perhaps even an electric or hybrid car, can save you money on fuel over time.

Buying a used car?

Before you purchase, it’s worth thinking about the pros and cons of buying a used car. In our guide, we’ve got some tips that help you decide if buying a used car is the right decision for you.

Find out more

Useful guides

Can I afford a loan?

Our guide covers different types of credit, budgeting, APR, credit scores and much more.

Loans glossary

Our A-Z glossary sheds light on loan terminology and can be used as a jargon buster.

All tools and guides

Check out all our tools and guides, covering everything from planning your financial future to switching loans.