Car Finance for young drivers


Rates from 28.5% APR
39.7% Representative APR -
Subject to status and affordability

Have you just passed your driving test and looking at purchasing your first car?

There is nothing like that feeling of passing your driving test and having the flexibility to go anywhere, at any time – without relying on mum or dad.

Here we take a look at the things you may need to consider if you are looking to get car finance as a young driver.

If you’re under 21 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 amount of lenders that are willing to provide you with a car loan.

If you’re only 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 due to your age it may be hard to secure car finance due to a lack of credit history also many lenders will be reluctant to agree finance unless you’re in employment, with a regular income.

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Representative example – Total amount of credit £8000, annual interest rate 20% (fixed), charge for credit £6711.44 (£6406.44 interest, £295 admin fee and £10 option to purchase fee), total amount payable £14711.44. Loan term of 48 monthly instalments, 47 payments of £306.28 and 1 final instalment of £316.28. 39.7% Representative APR – Subject to status and affordability


There are a number of advantages to purchasing your car on finance

First of all, you do not need to pay a huge lump sum of money; instead, you can pay for your car in manageable monthly instalments. This can be particularly useful for first-time car buyers who will most likely be paying premium insurance at the same time.

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.

For example, it’s a good idea to start building a credit history, as this will dictate how successful you’ll be in applying for finance in the years to come.

Pay your bills on time, as this is a good way to prove to lenders that you are capable of managing your finances.

Register on the electoral roll. You can do this by visiting


Car Finance for students

We can provide car finance to students, but few students have a full-time job, so income levels tend to be low. As long as you have a full valid driving licence and enough income to afford the repayments, we’ll could consider your application for student car finance. Please note you must have an income of £1250 a month to be considered for a car loan with us, and we are unable to consider student loans and bursaries as income.

Another issue that students may encounter when looking for car finance is that they haven’t had time to take out credit and build a credit profile and usually a lack of credit history, which means some lenders are less likely to consider you for car finance. 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.



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Insurance costs for young drivers and students

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.

You could opt for an insurance policy that comes with a black box. These telematics devices monitor how the car is being driven and reports back to the insurance company. Premiums on such policies can be lower, if the black box data evidences you drive safely and responsibility.

You can also add a more experienced driver to the policy. But you must never put them as the main driver when that’s not the case, as that’s fraudulent.

Your choice of car is important. Each car is assigned an insurance group number from one to 50, with one being the cheapest to insure and 50 the most expensive. Driving a car in a low insurance group is the easiest way to reduce your premiums.

Paying for the full 12 months insurance upfront will make your payment slightly lower, as paying in instalments adds on an interest amount, making it slightly more.


Why choose Go Car Credit?

Still deciding whether we are the car finance partner for you. Here are six reasons to make an application today with us:

  • Regulated: Get peace of mind knowing that we’re authorised and regulated by the Financial Conduct Authority (FCA) and are committed to achieving fair outcomes for our customers.
  • Trusted: Don’t just listen to us. See what our customers think! We’re rated ‘excellent’ on the independent customer review site Trustpilot!
  • Responsible: We take an ethical approach to car loans, and will work with you to provide affordable, simple and sensible car finance.
  • Supportive: Our team are always happy to offer help or receive feedback. We ensure the car finance process is stress free.
  • Fair: We never discriminate. No matter your credit history or personal circumstances, we will review your application on an individual basis.
  • Straightforward: Applying for car finance with bad credit can feel daunting and complicated. We’ll communicate as clearly as possible to ease you through the process.

How do I apply?

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.

There are no fees for making an application and no obligation – so if you change your mind and want to walk away, you can, it’s no problem.

Apply for car finance with Go Car Credit today.

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