Motorists taking out a loan from Barclays will get a 25% annual discount on any RAC breakdown package. Customers can also claim a free HPI vehicle check worth GBP39.95, particularly useful for those buying a second-hand car, to confirm that it has not been stolen, accident damaged and that it does not have any outstanding finance against it.

In addition, motorists can take advantage of Barclays’s current 10% discount on motor insurance purchased online. Loan customers can also claim a 5% discount if buying motor insurance from Barclays over the telephone.

Mark Till, product director for loans from Barclays, said: Many motorists will find that this is a much better rate than they would get on a car finance deal, plus they have the additional benefits of the RAC discount and the essential free HPI check. With the launch of the latest ’57’ number plates just around the corner, it is a great time of year to be upgrade your vehicle and this loan package could really help.

Customers can apply for a loan in branch, online or over the telephone. Loans are available from GBP1,000 to GBP25,000 over a range of terms.