At What Age Can You Get Car Finance?

At what age can you get car finance? 

If you're wondering when you can apply for car finance, the answer is simple: you must be at least 18 years old to sign a finance agreement in the UK. However, age is just one factor that lenders consider. Your credit history, employment status, and affordability all play a role in whether you'll be approved.

Let’s explore how age affects car finance and answer some common questions.

Is there a maximum age limit for car finance?

No, typically, car finance doesn't come with a strict upper age limit. Age is often seen as just one of many factors that lenders may consider when assessing loan applications. 

Lenders may prioritise your ability to repay the loan over your age, and look at things like your credit score and income. As long as you can prove you have financial stability, you could be eligible for car finance, regardless of your age. Some applicants with strong credit histories and stable incomes may find it relatively easy to secure financing,while others with less favourable financial profiles may find it more difficult. However, as some of our lenders specialise in car finance for bad credit, or car finance for people on benefits, we may still be able to help. Credit is subject to status.

Can an 80-year-old get a car loan?

Yes, they could! Age shouldn’t be a barrier to accessing car finance. Many lenders understand that seniors may have stable income sources and could still be eligible for finance.

This includes those in their 80s, who may have pensions, investments or other income. These incomes could show that someone is able to comfortably afford car loan repayments, so may not be a worry for lenders. If you're an older applicant, some lenders may offer shorter-term loans (e.g., 3 years instead of 5+ years).

Do you offer car finance for pensioners?

Yes, we could offer car finance for pensioners. We recognise that retirees may have different income streams, such as pensions, investments or benefits.

Plus, we know how important a car can be for independence, particularly in old age. We work with a trusted panel of lenders who offer car finance to those over 18, including elderly drivers, depending on your circumstances.

Do you offer car finance for people under 21?

Getting car finance under the age of twenty-one could be challenging due to limited credit history and income, which may lead to higher interest rates. But if this is your situation, don’t worry; you may have options. 

If you haven't had the chance to build up a good credit history, you could apply for a guarantor loan. This is someone (such as a parent) who has good credit and who guarantees to make your credit repayments if you can't. The maximum age for a guarantor that we can accept is 80.

Do you offer car finance for 17-year-olds?

No. Even though you can pass your driving test at 17, you must be over 18 to apply for car finance. It’s not unusual for young drivers to have no credit history but there are steps you can take to build your score which could improve your chances when you become eligible. This includes:

• Registering on the electoral roll

• Putting your mobile phone contract in your name

• Getting a credit card (as long as you can keep up with any repayments).

When you do turn 18, again, having a parent or guardian co-sign the loan could make getting a loan more possible for you. It may help you seem like less of a risk to lend to. Some lenders may also be able to offer student car finance deals for young drivers.

Do you offer car finance for 18-year-olds?

Yes, once you reach the age of 18, you are legally considered an adult and can sign a finance agreement in your own name. 

However, lenders will still assess factors like income, employment status, and credit history when assessing your application. Building a positive credit profile early is a way to help strengthen your chances of getting a good car finance deal as a young driver. If you’re new to credit, starting with a lower loan amount or a joint application may increase your approval chances.

Can new drivers get finance?

New drivers, including those who have recently got their driver's license, can still be eligible for car finance. However, lenders may view new drivers as higher risk because of their limited driving experience. This may result in slightly higher interest rates or stricter lending criteria. You can use our car finance calculator to get an idea of your monthly payments based on your budget and credit score.

When you apply with Car Finance 247 and if you are approved in principle, you’ll be paired with a dedicated account manager who can help guide you through the whole car finance process. If you’re buying a car for the first time, your account manager can sort all the admin, liaise with the lender, and even help you find a car from a verified UK dealership. If you’ve just passed your test, you may want to consider a smaller, more affordable car to try and keep finance repayments lower.

If you have an apprenticeship, can you get car finance?

Yes, you could! Lenders often consider factors like job status and income stability when assessing loan applications. An apprenticeship can show both of these qualities. 

Though apprentices might earn less than fully qualified workers, lenders may still be willing to lend to them. They may factor in the potential for future career growth and increased earning capacity, as current income and credit score (whether you have good or bad credit). You may increase your chance of approval with a larger deposit to reduce the loan amount or a guarantor (such as a parent) who can help if needed. Credit is subject to status.