M&S Personal Loans
for cars

Looking to buy a new car?

A personal loan from M&S Bank may help

Personal loans for cars

Looking to buy a car? We know it’s a huge investment. With the average price of a brand-new car increasingly on the rise, you might need a helping hand.

Whether you’re buying your son or daughter their first car, up-sizing to welcome new family members or treating yourself to your dream model, M&S Bank believes that buying a new car should be an exciting experience. Taking out a personal loan to purchase a car that suits your needs can be a great option as it allows you to spread the cost of the purchase over a period that suits you and your budget.

Why choose a personal loan for your new car?

There are many ways you can cover the cost of a new car. Many people choose car finance through their car dealership but this could potentially lead to high interest rates, and it means you won’t own the vehicle until your repayments end. This can make re-selling difficult, and you may end up owing more than it’s worth.

Choosing a loan for a car means you can buy your new car outright, so you can guarantee that the price your retailer quotes is the price you’ll pay, and if you choose to sell your car in the future, you can do so with no worries.

You could also set aside some of your loan to get your vehicle ready for the road – helping towards the cost of car insurance, tax and more.

What are the benefits of taking out a personal loan for a car with M&S Bank?

A loan with M&S Bank will help you manage the cost of your new car. With the M&S Bank Personal Loan Quote tool you can get an indication of the terms on which you may be able to take out a loan without your credit score being affected.

You could benefit from:

  • 2.8% APR representative on loans between £7,500 and £15,000 over 12 to 84 months
  • One of the leading loan rates for smaller personal loans between £5,000 and £7,499
  • A repayment term of up to 7 years on loans up to £15,000
  • Overpayments free of charge, lowering the interest you pay
  • The option to defer payments for the first three months, while you get settled
  • Personalised loan quotes which won’t affect your credit score

To apply for an M&S Loan, you must have an annual income of at least £10,000, be a UK resident and be aged 18 or over. Customers who do not meet our normal lending criteria may be offered a loan at a different APR. This will depend on your personal circumstances. The loan amount you request will also impact the rate offered.


Personal loan calculator

Your Results

Representative example

To borrow  would cost you:

 per month for the next  months

Based on a monthly repayment of  you could borrow:

 over a term of  months

Change the term?

  • Representative 
  • Based on an interest rate of  (fixed)
  • Total amount payable 

Customers who do not meet our normal criteria may be offered a different APR to our standard rates. The loan amount you request will also impact the rate offered.

Budgeting tips for buying a car

Buying your new car is only half the story; you’ll also have to think about running costs – everything from car insurance to petrol.


Drivers are legally obliged to take out third-party car insurance (at least), and many drivers opt to take out fully comprehensive insurance on a new car. That way, if the worst should happen, you won’t be out of pocket.

If you have a long history of accident-free driving, your insurance premiums are likely to be cheaper than someone who is new to the road whose first few years’ insurance premiums will typically be high.


Taking good care of your new car will help maintain its value, but the costs of making sure your vehicle is both safe and legal for the road can mount up over the years, so keep a budget aside for punctured/worn tyres, oil leaks and broken headlights.

Breakdown cover

There’s only one thing worse than being stuck at the side of the road with a broken car – and that’s having to pay for an emergency mechanic. Thankfully, premier car insurance from M&S Bank includes breakdown cover. Hopefully you’ll never need it, but it’s good to have just in case.


Like insurance, buying tax for your vehicle is a legal requirement, and the price you pay is determined by the car you own. Remember that car tax is now non-transferable, so if you’ve bought a car second-hand, you’ll need to tax it before you can drive it away.

Ready to take out a personal loan for your new car?

Use our personal loan calculator to see how much your repayments are likely to be on the amount you would like to borrow.


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