Can students get cars on finance?

For many students, having a car can be essential for commuting to university, work, or social activities. But with limited income and little to no credit history, you might be wondering: can students get car finance? The good news is that it’s possible! In this guide, carloans 365 explains how students can finance a car and what options are available.

1. Can Students Get Approved for Car Finance?

Yes, students can get car finance, but approval depends on factors such as income, credit history, and whether you have a guarantor. While traditional lenders may see students as a higher risk, there are specialist lenders who offer finance solutions designed for those with little or no credit history.

2. What Are the Best Car Finance Options for Students?

Students have several finance options to consider:

• Hire Purchase (HP): Spread the cost of the car over fixed monthly payments. You own the car after the final payment.
• Personal Contract Purchase (PCP): Offers lower monthly payments with the option to return, trade in, or buy the car at the end of the agreement.
• Guarantor Loan: If you don’t have a strong credit history, a guarantor (such as a parent) can co-sign the agreement to improve your chances of approval.

Each option has different benefits, so it’s important to choose one that suits your financial situation.

3. What Do Students Need to Get Car Finance?

To increase your chances of getting approved for car finance, you should:

• Show Proof of Income: If you have a part-time job or student loan, lenders may consider this as proof of affordability.
• Have a UK Driving Licence: Some lenders require a full or provisional UK driving licence.
• Consider a Guarantor: Having a guarantor can significantly improve your chances of approval.
• Improve Your Credit Score: Registering on the electoral roll, paying bills on time, and using a student credit card responsibly can help build your credit score.

4. Things to Consider Before Getting Car Finance as a Student

• Can You Afford the Monthly Payments? Consider not just the finance payments but also insurance, fuel, and maintenance costs.
• Do You Have a Stable Income? Ensure you can make repayments consistently, even during term breaks.
• Will You Need a Guarantor? Some lenders require a guarantor for students with little or no credit history.

In Summary

While getting car finance as a student can be more challenging, it’s not impossible. With the right preparation and finance option, you can secure a deal that suits your needs. At carloans 365, we specialise in helping students find the best car finance deals. Contact us today to explore your options and get on the road with confidence!