Guarantor Car Finance & Loans

silver golf car

Buy from any

reputable dealer

  • Bad credit, CCJs? We can help
  • No deposit options
  • Representative 49.9% APR
Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

Representative example:

Borrowing £7,500 over 4 years with a representative APR of 49.9%, an annual interest rate of 49.9% (Fixed) and a deposit of £0.00, the amount payable would be £320.86 per month, with a total cost of credit of £7,901.49 and a total amount payable of £15,401.49.

Rates may differ as they are dependent on individual circumstances. Subject to status.

We have access to a wide panel of lenders that offer a range of financing options to suit your financial and credit circumstances.

What is guarantor car finance?

This is a car loan where a third party (friend or family member) agrees to guarantee the repayment of the finance in the case of you failing to meet the payments. The initial loan is paid to the guarantor and they release it to you. You, the borrower, are responsible for making the loan repayments direct to the lender.

How does using guarantor car finance work?

guarantor loan works in the same way as most other forms of finance, but in this case there is a third party involved who takes on the final responsibility for your loan. Essentially, they are guaranteeing it will be repaid. A guarantor loan is similar to a personal loan in that you can do as you wish with the funds you receive. An example of this being that with a guarantor loan, you can decide to purchase a car and also pay for your insurance and road tax at the same time.

How is a guarantor loan different to other loans?

The main difference with a guarantor loan is that there is not just a two-way relationship between you and your lender, there is a third party involved; the guarantor. Basically, the guarantor agrees to repay the finance to the lender in the event that you default on the loan (i.e. miss repayments).

Who may it be suitable for?

Guarantor car finance can be suitable for people who have a less than perfect credit history and/or have difficulty in getting approved for finance.

If you keep up with the repayments, it can help to rebuild your credit score too.

Will the guarantor lose their home if I fail to keep up the repayments?

No - but that is not an excuse not to make your repayments. They will be liable for your debt. If you and the guarantor both fail to pay the loan, both of you could get issued county court judgements (CCJs). This will affect both your abilities to obtain credit in the future.

Does the guarantor need to be a homeowner?

In most cases, yes, the guarantor needs to be a homeowner. However, in certain circumstances we can consider tenants who have been at same address for many years and who have an excellent credit history.

To sum it up …

A guarantor backed loan could be one way to obtain the money to buy a new car, if all other options are not available to you. It must be stated, however, that you should consider the nature of a guarantor loan before entering into one, as you not only have an obligation to the lender but to the guarantor too.

These customers are real CarFinance 247 customers. They were invited to become a celebrity for a day, taking part in photoshoots and telling us all about their CarFinance 247 experience, and they were paid for doing so.

image of people looking at the camera