FAQs

Your questions answered.

Before you apply

Applying for car finance

  • You could apply for Car Finance if you’re buying a new or used car from a selected dealership, are 18 years old or over, a resident in the UK, have a Bank of Scotland current account of 3 months or more, are registered for Internet Banking.

  • Applying for Car Finance is straightforward:

    • First you can use our calculator to compare options available to you. This calculator is personalised and lets you know what you’re able to borrow
    • The next step is to enter the details or the car and dealership you’re using. You can use the ‘Find Dealer’ section to check if a dealership is eligible before completing the application
    • We will then complete an affordability assessment and subject to your application being accepted, we’ll keep the offer for you for up to 90 days
    • Finally you need to enter the bank details of the dealership you’re using to complete the finance agreement. We’ll then pay the dealership direct.

  • Once you’ve found the car you want to buy, we’ll need:

    • dealer or current finance provider's name and postcode and bank account details
    • the car registration number 
    • current and expected yearly mileage 
    • the price and deposit 
    • your financial details, including your monthly income and existing finance commitments. 

    If it’s a new car, we’ll also need:

    • the delivery date of your car 
    • the full vehicle details, if you don’t know the registration yet. 

    If you’re refinancing other car finance, you’ll also need your settlement figure and the name of the provider.

  • Car finance is an online offer only so you can’t apply in branch or over the phone.

  • Providing you’re eligible you can apply using your joint account but the application will be registered against the customer that is currently signed in. This means the Car Finance contract will be in one name only and can only be administered by that customer.

    • When completing the application the answers you give should only reflect your individual circumstances
    • Income should be entered as your personal income not the full household income
    • Outgoings should be entered as your contribution to those costs.

Understanding your options

  • Extra protection

    If you use Car Finance instead of an unsecured personal loan to buy your car you’ll benefit from extra consumer protection. The consumer rights act applies which means the finance company has responsibility for the quality of the goods and to resolve any issues with the dealership if they are not of the required standard.

    Voluntary termination rights

    Under the Consumer Credit Act 1974 you have a right to end any regulated Hire.

    Purchase (HP) or Personal Contract Purchase (PCP) agreement at any time before the final repayment under your agreement, becomes due. This is known as voluntary termination and is detailed in the ‘Termination: Your Rights’ section on your credit agreement.

    Should you decide to voluntarily terminate your agreement you will need to return the car and have paid half of the total amount payable as detailed on your agreement documentation. If you have already paid at least this amount plus any overdue repayments and have taken reasonable care of the car, you will not have to pay any more.

    Finance Product Comparison

    The car finance lender buys the car on your behalf and owns the car for the duration of the finance agreement, so if payments aren't kept up, the car can be repossessed.

    For unsecured personal loans the lender loans you the money directly and does not own the car.

    Car ownership

    Car Finance (PCP or HP options)

    Don’t own car until the final payment is made.

    Unsecured personal loan

    Own the car as soon as you purchase

    Loan Purpose

    Car Finance (PCP or HP options)

    Can only use to purchase car

    Unsecured personal loan

    Could use for other purposes as well as car purchase

    Deposit required to take finance out

    Car Finance (PCP or HP options)

    Typically yes

    Unsecured personal loan

    No

    Extra protection

    Car Finance (PCP or HP options)

    Yes – protection under the Consumer Rights Act if something goes wrong and the right to terminate your regulated agreement under the Consumer Credit Act 1974

    Unsecured personal loan

    No

  • APR stands for Annual Percentage Rate and is the amount of interest on your total borrowed amount that you'll pay annually (averaged over the full term of the loan).

    APR’s are typically used when comparing finance options to understand which would be the cheapest option overall.

  • The lump-sum is a one-off optional payment due at the end of your (PCP) finance term, if you decide to keep the car.

    This is normally referred to as the Guaranteed Future Value (GFV) and is an estimated value of how much the car will be worth at the end of a finance agreement (based on your expected mileage and agreement term). The GFV is only applicable if you intend to hand the car back at the end of the agreement as part of the goods return option.

    There’s no lump sum payment on the Hire Purchase (HP) finance option, which is why monthly payments are usually higher than with the Personal Contract Purchase (PCP) option.

  • Your deposit is the amount of money you have available to pay the dealership upfront and could include savings and/ or the value of a current vehicle. For example:

    1. Mr Jones is coming to the end of a 3 year existing Car Finance agreement, which is a PCP deal and wants to buy a different car. He has his eye on a car being sold at £13,200. His local dealership gives him a valuation of his current vehicle of £6,000. This is £500 higher than the amount required to settle the outstanding finance on his current car (£5,500) so he decides to use this as equity for his new car rather than return his current car to his current lender under the terms of his PCP deal. He will therefore pay the £5,500 to his current PCP lender and have £500 to use as a deposit on his new car.
      Mr Jones also has £1,000 cash savings. Using the £500 equity in his current car, plus his savings he has a deposit of £1,500 to pay directly to the dealership.
      When applying for Bank of Scotland Car Finance Plus, Mr Jones inputs the price of the car as £13,200, his deposit as £1,500 and therefore his borrowing amount as £11,700.
    2. Ms Singh owns her car outright but fancies a change. She has seen a car for sale at £8,000. The dealership offers her £1,750 for her current car which she accepts. Adding her cash savings of £250 to this gives her a deposit of £2,000. When applying for Bank of Scotland Car Finance Plus, Ms Singh inputs the price of the car as £8,000, her deposit as £2,000 and therefore her borrowing amount as £6,000.

Vehicle information

Payments and fees

  • We transfer the finance amount to the dealership directly as soon as you've signed the legal documents online. It can take several hours for the money to be received. Payments made after 3.30pm will be with the dealership before 12pm the following day.

  • Car insurance is not included as part of the finance we offer although it is available separately. Please note we need the car to be comprehensively insured.

  • Potential Fees at the end of your agreement

    At the end of your agreement

    Purchase fee - This is optional, but you must pay it if you want to become the owner of the Vehicle. It is included in the Final Repayment = £10

    Excess mileage fees -

    Applicable on PCP only if you choose to return the vehicle at the end of your agreement instead of paying the final lump sum

    If your engine size is up to 1.6 litres = 8.4p per mile

    If your engine size is more than 1.6 litres up to 2.0 litres = 12.6p per mile

    If your engine size is more than 2.0 litres = 16.8p per mile

    If your car is electric = 9.6p per mile

    (All excess mileage fees shown are including VAT at 20%)

  • Yes, you can do this if your existing provider allows you to. You’ll need an up-to-date figure before you submit your application though, so if you make a payment after submitting your application, the settlement figure and amount you want to borrow will no longer match, and your application will be declined.

    This won't affect your credit file, but you’ll have to start a new application with an updated settlement figure to continue.

    You can make extra payments to us at any time without any charges or fees.

  • You can store your invoice with the rest of the car's documentation, as the invoice is for your record only. You may need this in future when title is transferred to you as proof of purchase.

Managing your agreement

When your plan is ending

  • You’ll need to request an early settlement figure from us, which you can do online, and settle your current agreement before you change the car. You’ll also have the option to voluntarily terminate your agreement. Our customer service team will be able to give you details of the early settlement balance or more information about voluntary termination, and the steps you’d need to take.

    Should you decide to voluntarily terminate your agreement you will need to return the car and have paid half of the total amount payable as detailed on your agreement documentation. If you have already paid at least this amount plus any overdue repayments and have taken reasonable care of the car, you will not have to pay any more.

  • If you decide to keep the car you will need to pay the final payment Hire Purchase (HP) or the final lump sum payment Personal Contract Purchase (PCP). It is important that Personal Contract Purchase (PCP) customers prepare for how they will make the final lump sum payment.

  • We’ll contact you 90 days before the end of your finance agreement to outline the options you have. If you decide to return the car to us, we can either:

    Arrange to pick the car up from you free of charge providing the car is driveable and road legal

    Or, if you’d prefer you can return it to one of the authorised venues across the UK, if the car cannot be driven and requires a tow truck a charge may apply.

    To return the car, you will need to call us.

    Once the car has been collected or returned, we’ll check the mileage and that it’s in good condition*. Providing that you have not exceeded the maximum agreed mileage and the vehicle is in good condition, we’ll write to you confirming that the agreement has ended and your Car Finance account is closed. If the vehicle has exceeded the maximum agreed mileage a charge per excess mile will apply.

Aftercare

  • We don’t currently offer a delivery service as part of our Car Finance, however you could arrange this directly with the dealership. They may be able to offer you a contactless delivery service.

  • If you’re having issues with your vehicle, please speak to your dealer first. This is usually the quickest way to find a solution.

    If this isn’t possible, or you’re not happy with the outcome, you can make a complaint to us.


    Supporting evidence of a fault with your vehicle 

    To resolve your complaint more quickly, we may ask you to send us any evidence to support your complaint. This could be an independent inspection report or a diagnostic report for example. 

Already have car finance with Bank of Scotland?

If you’re already a Bank of Scotland customer, you can find out more about how to access your account online.

Existing customer

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