If your credit isn't where you'd like it to be, or you've struggled to secure car finance, you don't always have to tackle getting car finance on your own. A trusted family member or close friend can help by acting as a guarantor.
Before you sign anything, take a few minutes to learn how guarantor car finance works, who it's designed for, and what each person commits to under the agreement.
Yes, it's often possible to get guarantor car finance. If you can’t get accepted on your own, applying with a finance guarantor may make your application more appealing to some lenders. It doesn't guarantee approval, but If you have car finance with a guarantor, you are more likely to be approved, it can help reduce the lender's risk.
The decision won't rest on your guarantor alone. The finance company will still look at your income, the loan amount, your deposit, and whether you can comfortably afford to make the monthly repayments on time.
A guarantor is designed for people with bad credit or limited borrowing history without needing someone else to back the agreement. If you're unsure which option suits you, a credit broker like Carplus will help you compare lenders and point you towards the ones most likely to consider your application.
But remember, not every lender offers guarantor car finance. Some may consider your application with a guarantor, while others may offer bad credit car finance without asking another person to back the agreement.
Tell us what car you’re looking for, how much you want to borrow, and what monthly payment suits your budget. You can apply with a guarantor who agrees to support your application, and we’ll search our panel of lenders to find a suitable guarantor car finance option.
Once accepted, choose a car from any reputable UK dealer, or part exchange your current vehicle. From paperwork to lender checks, guarantor details, and vehicle checks, we’ll support you at every step and take care of the process from start to finish.
After everything is approved and signed, arrange collection or delivery, often on the same day where available. Then pick up your keys and enjoy your new car.
Guarantor car finance is an agreement where another person, usually a family member or close friend, legally agrees to cover the repayments if you cannot or do not pay them.
Instead of relying on your credit profile alone, the lender also considers the third-party backing the applicant. This option is usually for people with bad credit or no credit at all.
That doesn't mean you finance together in the same way as a joint car application. A guarantor means someone is there as a kind of safety net, not a co-owner who is equally responsible for the car. Before you're added as a guarantor to somebody's agreement, make sure you both understand the risks involved.
It's important not to confuse guarantor finance with guaranteed car finance. No responsible lender can promise approval just because you add another person to the application.
You might consider using a guarantor if you:
The process starts much like other car finance applications. You choose a vehicle, apply for car finance, and provide details about your income, employment, and credit history. If you're using a guarantor, the lender will also assess them to make sure they have a good credit history, a stable source of income, and can afford to cover the repayments if you can't.
Adding a guarantor does not replace the lender’s checks on you. The lender still needs to consider whether you could afford the agreement from your own income and regular spending.
If the lender approves the application, you sign the car finance agreement and make the loan repayments as normal. Your guarantor doesn't contribute to the payments unless you fall behind and the lender asks them to step in under the terms of the agreement.
As long as you make your payments on time, the finance works just like any other Hire Purchase (HP) or Personal Contract Purchase (PCP) agreement.
Adding a guarantor doesn't replace the usual checks. To apply with a guarantor to finance your car, you must meet basic lending criteria:
| To apply for car finance you need to | Requirements | Car must meet the following criteria: |
|---|---|---|
| Provide your full name, date of birth, and nationality | Be aged 18-75 years old | Cost between £4,000 and £40,000 |
| Share your recent address history | Pay an initial deposit if the lender requires one | Have no more than 120,000 miles on the clock |
| Confirm your employment status | Receive a monthly income of at least £1,000 | Be no older than 14 years at the end of the finance agreement |
| Show your income and regular monthly outgoings |
The lender will also consider your credit report and whether the repayments are affordable before deciding whether to offer car finance.
Yes, you can get car finance with a guarantor and a bad credit rating. Bad credit itself doesn't automatically stop you from getting car finance, and having a guarantor with a good credit score may make some lenders more willing to consider your application.
A guarantor won't erase past financial problems or existing debt. The lender will still look at your current income, affordability, and overall financial situation before deciding whether to allow you to secure finance. If you're approved, you may also find that a guarantor helps you access more competitive terms, although lower interest isn't guaranteed.
Before accepting an offer, check the APR, deposit, agreement length, monthly repayment, fees and total amount payable.
Lenders will usually carry out credit and affordability checks before approving a finance agreement, even if you apply with a guarantor.
When you get a quote through Carplus, we carry out a soft credit search. This helps us understand your financial situation and match you with lenders from our panel that may be more likely to consider your application.
A soft search is not visible to other lenders and does not affect your credit score. But a formal finance application may involve a hard credit search, depending on the lender.
Always read through the agreement carefully for extra fees or charges and make sure you understand exactly what's being offered before you sign.
Your guarantor doesn't have to be wealthy, but they do need to show they could realistically afford to make payments if they were ever asked to step in.
A good guarantor needs to:
Your guarantor must provide:
Meeting these criteria doesn't automatically mean someone can act as your guarantor. The finance company still has the final say, and different lenders may apply different checks before accepting them.
Compare and find the best car finance deals quickly and easily even with bad or poor credit. When comparing deals, you can also factor in the part-exchange value of your current car to reduce the overall cost.
Getting a finance quote with Carplus won't affect your credit score, but a hard search will be completed before completion of the deal
No-deposit car finance options are also available. Check your eligibility today with a soft search and find out what you qualify for.
Get your UK car finance decision in minutes. Check your eligibility first. Apply in confidence with Carplus
Not necessarily. A guarantor comes into the picture if you have a poor credit history, very little credit, or you've found it difficult to get approved for car finance in the past. But it isn't a shortcut to securing car finance because a lender is only likely to approve the agreement if it believes everyone involved can meet their responsibilities. If you don't have a guarantor with a stronger financial situation than you, don't assume there are no options available. Some car finance providers offer products designed for people with bad credit without asking someone else to take on the risk.
The first thing to do is contact your lender. It might feel tempting to avoid the conversation, but speaking up early gives you more flexibility. If you miss payments, the lender may work with you before turning to your guarantor. If the payments still aren't made, they’ll ask your guarantor to step in and cover the missed transactions. The lender will usually try to deal with the missed payments with you first. This could include discussing the arrears, your circumstances and any support that may be available. If the payments remain unpaid, the lender may contact your guarantor and ask them to pay under the terms of the agreement. The guarantor should be told what has happened, how much is due and what action the lender expects them to take before payment is collected.
You normally can't just swap one guarantor for another. Your guarantor was part of the original car finance agreement, so any change has to be approved by the lender. If they allow it, the new guarantor will usually go through the same checks as the first one. Until everything is signed off, the original guarantor remains responsible for the agreement.
Generally not once the agreement is in place. That's because you're taking on a legal responsibility if the borrower can't make the payments. In most cases, that responsibility stays with you until the finance ends or the lender agrees to another arrangement.
The biggest one is simple: if the borrower can't pay, you may have to. That puts pressure on your own finances, especially if the payments stretch over several years. If you also struggle to keep up, it could impact your credit and leave you dealing with extra costs as well. Also, money can put even strong relationships under strain. That's why it's important to have an open conversation before agreeing to help a friend or family member.
It shouldn't simply because you've agreed to be one. If the borrower makes every payment on time and you never have to step in, being a guarantor won't affect your credit score. However, some lenders carry out a hard credit search, which temporarily lowers your credit score by a small amount. The bigger risk comes if the borrower stops making payments and you're asked to take over. If you then miss those payments, it will affect your own credit history as well as theirs.
