Your questions answered.
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.
Back to topWe offer finance for new and used cars at the majority of UK dealerships. There are some restrictions relating to make/model, age and mileage of the car, and we can't finance commercial vehicles. After you enter the details for the car you want to buy, we’ll tell you if our finance is available for that car.
We do not finance commercial vehicles, motorcycles or leisure products such as caravans and motorhomes. Other limitations based on the vehicle may apply.
Back to topWe don’t currently offer part exchange as part of our Car Finance however you could arrange a part exchange with the dealership, who can settle any existing finance on your vehicle, if applicable.
Back to topWe work with the majority of UK dealerships - you can search by your location or postcode to find out which dealers we currently work with, once logged on to Internet Banking.
Back to topWe 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.
Back to topWe 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.
Back to topUnfortunately not, our finance is only available for cars.
Back to topUnfortunately not, you can only take Car Finance for personal, not business purposes.
Back to topWe do not allow the vehicle to be registered in another family member’s name. The person applying for finance should be the registered keeper of the vehicle, have a valid driving licence permitting them to use the vehicle and also be the main driver.
Back to topNo, you cannot transfer an agreement to someone else.
Back to topNot necessarily, although this could affect your credit score, if you’re not.
Back to topBank of Scotland Car Finance is an online offer only. Once you've registered for Internet Banking (it’s easy to register and only takes a few minutes) you can use the personalised calculator to see what each Car Finance option could look like for you.
Back to topYou will not need to provide any paperwork and details of your finance agreement will be sent to you by email. You should read all paperwork carefully and store it in a safe place. We’ll send you a welcome letter which confirms your monthly payments and direct debit details.
Back to topCar 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.
Back to topPotential Fees 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
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%)
Back to topNo - our Car Finance offer is for existing customers who have held a Bank of Scotland current account for more than 3 months, are UK residents and aged 18 and over.
Back to topApplying for Car Finance is straightforward:
Once you’ve found the car you want to buy, we’ll need:
If it’s a new car, we’ll also need:
If you’re refinancing other car finance, you’ll also need your settlement figure and the name of the provider.
Back to topThis is the exact amount needed to end the agreement you have with your current finance provider. You’ll need to get in touch with your current finance provider and ask them to send this to you.
Back to topYes, 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.
Back to topCar Finance is an online offer only so you can't apply in branch.
If you do have any questions you can call us on 0333 202 7968 and we’ll be happy to help. Please note, you won’t be able to apply over the phone.
Back to topYou can make as many applications online as you like, without any credit searches because you’re already our personal current account customer and we’ll keep the offer for you, up to 90 days. However, you can only have one application saved at a time.
Back to topProviding 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.
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.
Back to topIf you decide to keep the car you will need to pay the final payment (Fixed HP Plan) or the final lump sum payment (Flex PCP). It is important that Flex PCP customers prepare for how they will make the final lump sum payment.
Back to topWe’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, you’ll need to call our customer services team on +44 (0)333 202 7946.
We can either:
If the car cannot be driven and requires a tow truck a charge may apply.
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.
Back to topWhen you apply for Bank of Scotland Car Finance, we don’t need to do any additional credit searches, because we already know you. This means that you can browse your options and apply for Car Finance with no impact on your credit report.
If you take out a Car Finance plan, this will be detailed on your credit report.
Back to topYes, you can refinance most finance agreements with other providers. You can find information about this in the ‘Who is eligible for car finance?’ section, and get personalised quotes and make an application online.
You can’t use this service to pay off a loan or credit card you’ve bought a car with.
If you refinance existing debts, you may pay a higher rate of interest or make repayments over a longer term. This means that you may pay more interest overall.
Back to topThe 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 Fixed (HP) finance option, which is why monthly payments are usually higher than with the Flex (PCP) option.
Back to topAPR 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.
Back to topIf 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.
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.
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 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
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
Car Finance (PCP or HP options)
Typically yes
Unsecured personal loan
No
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
Back to topYou 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.
Back to topYour 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: