Representative example – Total amount of credit £9,700, annual interest rate 18.25% (fixed), charge for credit £9,156 (£8,851 interest, £295 admin fee and £10 option to purchase fee), total amount payable £18,856. Loan term of 60 monthly instalments, 59 payments of £314.10 and 1 final instalment of £324.10. 34.6% Representative APR – Subject to status and affordability
Being a student or a young driver can make it a little more difficult to get car finance. Here are a few reasons why that may be the case:
If you’re under 25 years old, it may be harder to find a suitable car finance agreement because you’ll probably have little – or no – credit history and this is likely to affect the number of lenders that are willing to provide you with a car loan.
If you’re 17 years old, you are not allowed to sign a credit agreement until you turn 18. In that case, your only option is to buy the best car you can afford through your savings or wait until you are 18 to enable you to apply for car finance or a personal loan through your bank.
At 18, you can apply for car finance, but it may be hard to secure car finance due to a lack of credit history.
Many lenders will be reluctant to agree for young drivers or finance unless you’re in employment, with a regular income. Students are less likely to have a steady income due to the nature of being in education.
Lenders may also see young drivers as a bigger risk for repaying loans and only accept applications from consumers 25 years or older.
As students and young drivers are less experienced on the roads, there is a higher risk of them being involved in car accidents. For this reason, lenders tend to be a little more cautious.
If you are looking to have the best chance of securing car finance, there are things you can do in the meantime that will help you over the long-term.
We can provide car finance to students.. If you have a full valid driving licence and enough income to afford the repayments, and you are 25 years or older we’ll consider your application for student car finance.
Please note you must have an income of £1500 a month to be considered for a car loan with us, and we are unable to consider student loans and bursaries as income.
The good thing about Go Car Credit is that we don’t just review your credit profile to make our decisions, we will look at your affordability for a car loan with us.
As a student or young driver, you may still be suitable for standard forms of car finance but you will still need to be able to afford the monthly payments so income may be a barrier for you. Different car finance providers will have different income requirements and lending criteria. The below car finance options may be able be available to you:
Young drivers’ car insurance is likely to be very expensive and as a new driver there are a few things you can do to ensure you get the lowest price available to you.
Still deciding whether we are the car finance partner for you. Here are six reasons to make an application today with us:
Not wanting to fill out form after form. With Go Car Credit, applying for car finance with bad credit couldn’t be easier.
Enter a few details into our safe online application form in a matter of minutes. Once we’ve given you a decision, we’ll ask for some details on your vehicle of choice before asking for you to give an online signature if you want to go ahead.