Halifax launches secured online car finance product

Source: Halifax

Halifax becomes first bank to launch secured online car finance in the UK, Halifax Car Plan Extra, exclusively to eligible online banking customers*.

Offered with competitive rates as low as 3.6% APR Representative**, Halifax Car Plan Extra, provides interested customers who intend to buy a car the ability to choose the right finance agreement for them be it through a Hire Purchase or Personal Contract Purchase*** which can be accessed through the Halifax online banking website via PC, tablet or smartphone at home or on the move.

How it works:

1: Calculate

a) Eligibility: Eligible customers can access Halifax Car Plan Extra via a new car finance tab on the Halifax internet banking website There they can use a simple online calculator to view what car finance options are available to them – all they need to input is their preferred spend, deposit and length of finance term.

b) Finance options: They can then see what repayments are available to them either through Hire Purchase or Personal Contract Purchase. The calculator search leaves no credit footprint, so no record will go on their credit score.

2: Get a decision

a) Choose the car: Once the customer has chosen their car at a dealership and has all the necessary details (registration, manufacturer and model) the customer can input these details into the website and an illustrative calculation will appear. If the customer is happy with this finance calculation they can then complete the application on-line straightway which will include some additional information including ongoing expenditure and income details. The customer will also have to provide details of the dealership that they are buying the car from.

b) Alternatively, if the customer has not chosen their car yet they are still able to use the interactive calculator to explore what finance may be available to them. Once they have seen the various finance options, the customer can go to any dealership and select their car of choice from the dealer.

3: Complete:

a) Final few steps: Finally the customer will need to speak to o the dealership directly to agree the final price of the car, any part-exchange that they might want to undertake and when the car will be ready for collection. Once agreed, the customer logs back on to the Halifax internet banking website via smartphone, tablet or PC with the dealership's bank details and Halifax will transfer the money directly to the dealership.

b) Collection: Once the dealership has confirmed receipt of the money the customer can arrange to pick up their car.

Halifax Car Plan Extra is currently available for used cars that are purchased through dealerships only but will be rolled out to new cars in the coming months.

Anita Hockin, Digital Director, Halifax said: "Halifax Car Plan Extra gives our customers a simple and great way to finance the car they want direct from their bank at a competitive rate as it is a secured finance agreement. It is convenient and can be arranged online wherever they are.

"As more and more of our customers use online banking, Halifax Car Plan Extra is just another way for us to meet this growing need."

Jakob Pfaudler, Managing Director, Asset Finance, Lloyds Banking Group said:

"Having identified a gap in the market, we developed a new offering by using the insight and expertise we have from across various areas within the Group. This is a competitively priced car finance offer which is simple and easy for our customers to use." 

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