Salary deduction car loans
✓ Borrow up to £15,000 with exclusive rates from 7.9% APR.
✓ No hidden, early or late repayment fees
✓ Automatic repayments straight from your salary
✓ Pay back over 1 month to 5 years
A simpler way to pay for your car through payroll
Buying a car can come with a big upfront cost. Whether you’re replacing an older vehicle, buying your first car, or upgrading to something more family-friendly, a salary deduction car loan can help you spread the cost through manageable repayments direct from your pay.
At Great Western Credit Union, we offer salary deduction car loans of up to £15,000, to support workers across the South West with fair and affordable repayments through their salary.
What is a salary deduction car loan?
Salary deduction car loans are also sometimes described as payroll car loans or car loans through payroll. With this type of borrowing, your agreed loan repayment is deducted from your salary through your payroll.
Once your application is approved, the loan is paid into your credit union account, giving you the freedom to choose the car that’s right for you.
Our salary deduction car loans can help cover:
- Used or second-hand cars
- New or nearly-new vehicles
- MOT costs and essential replacement parts
- Repairs needed shortly after buying a car
Get a quote before you apply
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Find out how much you will need to repay.
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We'll also tell you how likely you are to be approved.
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Getting a quote won't affect your credit score.
You can borrow from between £100 and £15,000 at 7.9% to 29.9% APR representative. Repay your loan over 1 to 5 years.
Loans are subject to status.
We will show you:
- your personalised interest rate
- how much your repayments will be
- how much the total loan would cost
Key details
Important information before you apply.
£100 - £15,000
7.9% to 29.9% APR representative on loans between £100 and £15,000.
Your rate is personal to you. It’s based on things like your credit score, income, and loan amount, so it might not match the Representative APR.
No matter what, we’ll never offer a rate above 29.9% yearly (fixed).
The rate you see in your quote is an estimate and not a guarantee.
Representative APR: 29.9%
Representative example: Borrow £1,500 over 24 months, and repay £81.18 per month, total amount payable (including interest of £448.32) is £1,948.32. 29.9% APR representative.
Your actual rate will depend on your credit profile. Rates range from 7.9% to 29.9% APR.
Other examples:
Borrow £4,000 over 24 months, and repay £206.84 per month, total amount payable (including interest of £964.16) is £4,964.16. 23.9% APR representative.
Borrow £10,000 over 48 months, and repay £242.58 per month, total amount payable (including interest of £1,643.84) is £11,643.84. 7.9% APR representative.
1 month - 5 years.
There are no fees for paying your loan off early.
Ready to get on the road?
A reliable car shouldn’t come at the cost of your financial wellbeing, a GWCU salary deduction loan could help you spread the cost with confidence.
Why choose Great Western Credit Union?
As a credit union, we do things differently. We’re a mutual, member‑owned financial organisation, which means our focus is always on our members’ financial wellbeing, not making profits for shareholders.
As a co-operative, we care deeply for our local communities in the South West. That’s why every penny stays right here in the region with any profits reinvested to benefit our members and the communities we’re proud to serve.
We always take your current circumstances into consideration, not just your credit history.
No hidden costs, no late fees, and no penalties for early repayments.
We pride ourselves on being responsible lenders, meaning we only approve a loan if we’re sure you can safely repay it.
With plans stretching up to 5 years, repayment schedules are adapted to your lifestyle so you’re never caught out.
How much could a salary deduction car loan cost?
Use our loan calculator to see how a GWCU salary deduction car loan fits your budget.
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This example is an estimate. The actual rate you're offered could be higher or lower than the rate in this example depending on your personal situation, the loan amount and the term you choose when you apply. You'll see your personal rate before you decide to go ahead.
Am I eligible for a car loan through salary deduction?
To apply for this loan, you need to meet the following criteria:
- You have to be aged 18 or over
- You must be employed by one of our employer partners (Check here)
You have to have a regular income over £450 per month - You have to have enough disposable income to meet the loan repayments
There are two other eligibility criteria, but these are optional:
- If you are a UNITE and UNISON trade union member from the South-West
- If you are a tenant of one of our partner housing associations
Can I get a salary deduction car loan with bad credit?
While we do perform an initial credit check, it’s not the only thing we look at. We also consider your personal circumstances and income when reviewing your application to make sure the loan is right for you.
Why choose a salary deduction car loan?
One of the biggest advantages of borrowing through salary deduction is its simplicity.
One of the biggest advantages of borrowing through salary deduction is simplicity.
Because repayments are taken through payroll:
- You don't need to remember repayment dates
- You know how much is deducted from your pay
- Budgeting can become simpler and more predictable
- You don't need to manually make a payment each payday
It's a straightforward way to manage borrowing and make the costs of buying a new or used car more affordable.
Salary deduction car loans vs Salary sacrifice car schemes
Lease a car through your employer
- Your employer provides the vehicle
- Monthly payments are taken from your salary
- The vehicle is usually leased rather than owned
- Maintenance and other services may be included, depending on the scheme
- Tax and National Insurance considerations may apply
- Eligibility depends on your employer's scheme
Own the car yourself
- Borrow money to buy a new or used car
- You own the vehicle from the point of purchase
- Repayments are deducted directly from your salary through payroll
- Choose the car that suits your needs and budget
- Can be used for new, used or nearly-new vehicles
- Fixed repayments to help with budgeting
Ready to apply for a payroll car loan?
Frequently asked questions
Are salary deduction car loans a good idea?
For some people, a car loan repaid through their salary can be a useful way to cover a big purchase without having to worry about having all of the money upfront. It can also provide peace of mind if there are any surprise costs.Â
Before borrowing, it's important to make sure the repayments fit comfortably within your budget and that you're only borrowing what you need.
Do people take out loans for cars?
Many people take out loans for cars and other big purchases. But, it’s always important to understand you need to pay back the money you borrowed and the interest added up over a set time period. This means you’ll pay more than you initially borrowed and may have your credit at risk if the instalments are not paid on time.
Are salary deduction loans secured or unsecured?
Generally, loans like salary deduction car loans from credit unions are unsecured. This means you don't need to use your home, car or any other asset as security when borrowing for renovations, repairs or upgrades around the home.
At Great Western Credit Union, our salary deduction car loans are unsecured, giving you the flexibility to cover a larger purchase upfront.
What can I use a salary deduction car loan for?
A salary deduction car loan can be used for purchasing a new or used car or covering the costs of any urgent repairs or replacement parts needed for your car.
Whether you're buying new or second hand, a salary deduction car loan can help you spread the cost.
Can I get a salary deduction car loan with bad credit?
At Great Western Credit Union, we consider more than just your credit history. While we do conduct an initial credit check to make sure you can safely repay your loan, we also take into account your personal circumstances when reviewing your application.
Take our quick eligibility check to find out whether a salary deduction car loan is right for you.
How quickly can I receive the funds from a salary deduction car loan?
A salary deduction car loan can help you get on the road sooner, giving you access to the funds you need straight away if your application is approved.
Are salary deduction car loans better than salary sacrifice car schemes?
It depends on your circumstances, the type of car you want and what your employer offers.
A salary deduction car loan could be suitable if you want to borrow money upfront to buy a new or used car and own the vehicle yourself. Your agreed loan repayments are deducted from your salary through payroll, helping you manage the cost through regular payments.
A salary sacrifice car scheme works differently. You give up part of your salary in exchange for a car provided through your employer. Salary sacrifice arrangements can have different tax, National Insurance and eligibility considerations.
If you want to buy and own a car using a loan with repayments taken through payroll, a salary deduction car loan could be the right option for you.