Car finance for young drivers
Owning your first car is a major milestone, but for many young drivers, getting car finance can feel a bit daunting. Lenders usually check credit history, income, and affordability when assessing applications. This can be tough for young people who haven’t built a good credit score yet.
But at Car Finance 247, we understand that everyone has to start somewhere, and we’re here to help! We work with a panel of lenders who take all circumstances into account, so you could be approved even with a less than perfect credit score. Credit is subject to status.
In this guide, we’ll explain everything you need to know about young driver car finance and tips for improving your chances of approval.
Why young drivers might struggle to get car finance
Though a young driver could get car finance, some lenders may see them as more of a risk to lend to. Young drivers often face challenges because:
They’re not yet over eighteen. Although you can pass your test and start driving at seventeen, you can’t yet sign a credit agreement.
They may have little to no credit history, making it difficult for lenders to assess their ability to repay a loan.
Their income might be lower or inconsistent, especially for students or those in part-time work.
They might not have a stable address history, which some lenders use to verify financial reliability.
While these factors can make getting car finance harder, as long as you are at least eighteen, it doesn’t mean it’s impossible. At Car Finance 247, we work with lenders who understand that everyone starts somewhere and are willing to consider applications from young drivers.
Can young drivers get car finance?
Yes, young drivers – provided they are over eighteen – may be able to get car finance, but they might need to take additional steps to boost their chances. Here are some options that could help:
Guarantor loans – If you’re struggling to get approved, you might be able to apply for a guarantor car loan. This means asking a trusted friend or family member with a good credit history to co-sign your agreement, reducing the risk for lenders.
Providing proof of income – Lenders need to see that you can afford the repayments. If you have a steady job, providing payslips or bank statements can help strengthen your application.
Improving your credit score – If you don’t have an extensive credit history, consider building your score by registering on the electoral roll, keeping up with regular payments on any existing credit, and avoiding multiple finance applications at once where hard searches are conducted.
Read our guide on improving your credit score for more detailed tips.
Do you need a high credit score to get car finance as a young driver?
Not necessarily! At Car Finance 247, we don’t expect young drivers to have an amazing credit score. While a higher score can make approval easier, we work with lenders who consider all circumstances, and could offer bad credit car finance deals. Even if you have a low or limited credit score, you might still be able to secure car finance.
Just bear in mind that if your score is very low, you might be offered higher interest rates.
You can get a good idea of the deal you’re eligible for by using our quick car finance calculator. Credit is subject to status.
Can students get car finance?
Yes, students could get car finance, but approval depends on factors like income and credit history.
While some students may earn money through part-time work, it does not always mean they’ll meet lender income criteria. Most lenders require a regular, provable income - funds such as student loans may not be accepted as a primary source of income when applying for finance.
What are the best car finance options for young drivers?
There are several types of car finance available, and the best option depends on your circumstances and preferences. Here’s a breakdown of the most popular choices:
You pay a deposit (if required) and then make fixed monthly payments.
You own the car once the final payment is made.
There are no mileage restrictions.
Monthly payments may be higher compared to other finance options.
Ideal for young drivers who want to own their car outright at the end of the agreement.
Personal Contract Purchase (PCP)
Lower monthly payments compared to HP.
You don’t own the car unless you make a final ‘balloon payment’ at the end of the agreement.
Mileage limits apply, and exceeding them may result in additional fees.
Gives flexibility—return the car, trade it in, or buy it at the end of the contract.
Suitable for young drivers who want lower monthly payments and flexibility at the end of the term.
Personal Contract Hire (PCH)
Essentially a long-term lease—you never own the car.
Fixed monthly payments with mileage restrictions.
Maintenance packages may be available to cover servicing costs.
Best for young drivers who want a brand-new car with lower maintenance worries but don’t mind not owning it.
Each option has its pros and cons. Whilst Car Finance 247 don’t currently offer PCH options, we may be able to help with alternatives. So, it’s important to think about factors like cost, flexibility, and ownership before picking a finance deal.
How Car Finance 247 can help young drivers
At Car Finance 247, we believe everyone deserves a feel-good car buying journey. Once approved in principle, you’ll get:
A dedicated account manager who will help you through the process and try to find the best finance options for your circumstances.
Access to a panel of lenders who may consider young drivers, even if they have little or no credit history.
Flexible finance options, including no-deposit car finance.
We’ll do our best to help you find a finance deal that works for you so you can get on the road with confidence.
Start your journey today by getting a free, no-obligation quote!