Can I get car finance with a guarantor?
Yes, you can get guarantor car finance. A guarantor agrees to make payments if you cannot meet the terms of your finance agreement. Lenders approve applications more readily because this arrangement reduces their risk. This option helps many people with poor credit history or limited income secure the car they need.
Lenders assess your credit score to determine how reliably you'll make repayments. A guarantor with good credit provides additional security for the lender's investment. This proves particularly valuable if you have a poor credit rating, limited credit history, or irregular income. Your guarantor becomes legally responsible for repayments if you cannot pay, which gives lenders confidence to approve your application.
Car finance calculator
These estimates are subject to credit checks and may change when you apply for finance. this is for example purposes only
Hire Purchase (HP)
APR 11.9%60 monthly payments of
£0
- Interest rate
- 11.9% APR
- Amount of interest
- £0
- Total payment
- £0
Personal Contract Purchase (PCP)
APR 11.9%60 monthly payments of
£0
- Optional final payment
- £0
- Interest rate
- 11.9% APR
- Amount of interest
- £0
- Total payment
- £0
Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Representative Hire purchase (HP) example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0, the amount payable would be £185.33 per month, with a total cost of credit of £4,119.81 and a total amount payable of £11,119.81. We look to find the best rate from our panel of lenders and will offer you the best deal that you're eligible for. We receive a fixed fee commission per finance agreement, or we receive a commission based on a percentage of the total amount of finance taken. This will not affect the interest rate offered or the total amount repayable. Our service is free.
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What is a guarantor for car finance?
A guarantor backs your car loan, it is a third party that backs your borrowing. This person agrees to make your monthly repayments if you cannot meet the terms yourself. They're typically a family member or close friend with a good credit rating. Your guarantor signs the finance agreement and becomes legally responsible for the debt.
Finance providers gain confidence when someone with strong credit supports your application, and a guarantor can increase your chances of approval significantly. This arrangement helps you apply for car finance when poor credit history or limited income might otherwise prevent access. Finance providers consider this among several car finance options for UK drivers who need reliable transport. Successfully managing these repayments helps you build your credit score for future independence.
How does a guarantor car finance work
Getting a car loan with a car finance guarantor follows the standard UK application process. You apply alongside your guarantor while lenders assess both financial situations. They check your credit score and history, income, and employment status, then review your guarantor's credit rating and employment ability to cover repayments if needed.
Lenders base approval on your combined financial strength. This type of car finance creates an agreement including both names, making your guarantor legally responsible for missed payments. You receive the funds for purchasing a car and make monthly repayments directly to the lender following standard hire purchase or personal contract terms.
Do you need a guarantor for car finance?
You don't need a guarantor when your credit score is good and meets lender requirements. Car finance with no guarantor works well for people with strong credit history who demonstrate reliable repayment behaviour. Lenders approve these applications directly based on your individual financial strength.
Using a guarantor can help when your credit history shows missed payments or remains limited. A guarantor to secure car finance becomes essential if you have bad credit, irregular income, or no previous borrowing record. Your guarantor's strong credit rating reassures lenders and secures approval for your application.
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- High Acceptance Rate
- Representative APR 21.9%
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What are the criteria for getting car finance with a guarantor?
To apply with a guarantor to finance your car, you must meet basic lending criteria. We verify these details to match you with specialist lenders from our panel.
Your requirements
- Age 18-75 years old
- UK resident with recent address history
- Full UK driving licence
- Monthly income of £1,000 or above from employment or self-employment
- Provide details of income and regular expenses
Vehicle criteria
- Purchase price £4,000-£40,000
- Maximum 120,000 miles on the odometer
- No older than 14 years at the end of the finance agreement
- Meets lender's valuation and condition standards
Can I get car finance with a guarantor If I have a bad credit?
Yes, you can. Guarantor car finance exists specifically to help people with bad credit history secure funding. Lenders approve your application because your guarantor's strong credit rating compensates for your bad credit score.
Car finance with a guarantor works because lenders assess your guarantor's ability to cover repayments if you cannot make payments. This arrangement gives you access to vehicle finance that poor credit would typically prevent.
Bad credit includes missed payments, defaults, County Court Judgements, or no credit history at all. Lenders worry you might miss future repayments based on your past financial behaviour. Your guarantor's proven track record reassures them that monthly payments will reach them regardless. Bad credit car finance with a guarantor addresses their risk concerns directly.
Can I get car finance with a guarantor and no credit check?
Lenders must assess both your credit history and your guarantor's financial position before approving any loan. UK finance regulations require these checks to ensure responsible lending.
Getting a quote for guarantor car finance typically uses a soft credit search that won't affect your credit score. Lenders run this initial check to understand your financial situation and match you with suitable deals. A hard credit check only happens when you formally apply and accept a finance agreement, which does appear on your credit report.
Credit checks protect you from unaffordable borrowing. Lenders verify your income, existing debts, and ability to make monthly payments throughout the loan term. Your guarantor undergoes the same assessment to confirm they can cover repayments if needed.
Who qualifies to be a guarantor for car finance?
Lenders set specific requirements to ensure your guarantor can cover monthly payments if needed. Your guarantor must meet these criteria before lenders will approve your guarantor car finance application.
Your guarantor must:
- Be aged between 18 and 75 years old
- Hold UK residency or British citizenship
- Have a good credit score with no recent defaults or County Court Judgements
- Demonstrate stable income from employment, self-employment, or pension
- Prove they can afford your car loan repayments alongside their own financial commitments
- Provide proof of identity, address, income, and bank details
- Have no existing financial links to you through joint accounts, mortgages, or loans
- Maintain a clean credit history showing reliable debt management
Meeting these requirements gives lenders confidence in your guarantor's ability to support your application. Car finance with a guarantor becomes accessible when your guarantor satisfies these eligibility criteria.
Who might need car finance with a guarantor?
You need guarantor car finance if you have bad credit from missed payments, defaults, or CCJs on your credit history.
First-time borrowers and young drivers also benefit because they lack the established credit record that lenders want to see. Lenders struggle to predict your repayment behaviour without previous borrowing history to assess.
Self-employed people with variable income often need a guarantor to demonstrate stable repayment capability. Young drivers under 25 typically require guarantor support because their age prevents them from building sufficient credit history. Anyone earning below lenders' minimum income thresholds can access car finance through a guarantor who meets these requirements.
Your guarantor's strong financial position compensates for these circumstances.
What does a guarantor need to provide for car financing?
Your guarantor provides detailed documentation during your car finance application. Lenders use these documents to verify their financial strength and ability to cover repayments if you cannot make payments.
Your guarantor must provide:
- Full name, current address, and contact details
- Proof of identity (passport or driving licence)
- Proof of address (utility bills or bank statements from the last three months)
- Employment details and income verification (payslips, P60, or tax returns for self-employed)
- Bank statements showing regular income and existing financial commitments
- Credit history consent for lenders to run a credit check
- Details of any outstanding loans, mortgages, or other guarantor agreements
- Property ownership documents if they own their home
Lenders assess this information to confirm your guarantor meets their eligibility criteria for guarantor car finance. Your application moves forward once they verify your guarantor's ability to support your monthly payments throughout the loan term.
Pros and cons of guarantor financing
Guarantor car finance offers specific advantages and carries certain risks you should understand before applying. Weighing these factors helps you make an informed decision about whether this finance option suits your circumstances.
Pros:
Cons:
How to get car finance with a guarantor
Getting guarantor car finance follows a straightforward three-step process.
Step 1: Submit your application with guarantor details
Complete our online application form with your personal information and your guarantor's details. Lenders perform a credit check on both parties that won't affect either credit score initially. Your instant quote displays your approved amount, monthly payments, representative APR, and total cost of credit.
Step 2: Guarantor verification and lender approval
Your guarantor will need to complete verification documents while lenders assess their credit rating and employment history alongside income and ability to cover repayments. This stage includes a hard credit search on your guarantor and confirmation of their financial commitments. Lenders typically provide final approval within 24-48 hours.
Step 3: Sign your agreement and collect your vehicle
Review your guarantor car finance agreement terms with your guarantor before both parties sign. Submit required documents including valid driving licence, proof of income, and proof of address from both you and your guarantor. Lenders release funds to the dealership once complete, allowing you to secure a car through collection or arranged delivery.
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FAQ
What will happen if I fail to keep up with my monthly repayments?
Your guarantor becomes legally responsible for making your finance payments if you miss them. Lenders contact your guarantor to cover missed repayments. Both your credit score and your guarantor's credit rating will impact your credit score negatively from missed payments. Continued non-payment can result in vehicle repossession and court action against both parties.
Is Carplus a direct lender for guarantor car finance?
Carplus operates as a broker, not a direct lender offering guaranteed car finance. We connect your application to our panel of specialist finance companies across the UK. This service finds you competitive deals without affecting your credit score initially. Finance companies pay us commission, so you pay nothing for our broker services.
What is the difference between joint and guarantor car finance?
Joint car finance makes both applicants equally responsible for repayments from day one as a type of finance with shared obligations. Guarantor car finance only requires your guarantor to make payments if you cannot pay. The security of a guarantor provides backup protection without sharing vehicle ownership or primary payment responsibility.
How do I change my guarantor for a car loan?
You cannot change your guarantor easily once the agreement is active. Contact your lender directly to request changes. The lender decides whether to permit modifications based on their policy. Your new guarantor must meet all eligibility criteria and pass credit checks. Most lenders require a fresh application with updated terms.
What is the role of a guarantor in a car loan?
Your guarantor agrees to make repayments if you cannot pay. They provide security that reassures lenders to approve car finance if your credit history shows problems or you have limited income. The guarantor only becomes liable when you miss payments. They bear no financial responsibility while you maintain regular repayments with good credit history.
Can I withdraw as a guarantor?
You cannot withdraw as a guarantor once you sign the agreement without lender consent. You can only withdraw as a guarantor if the borrower finds a replacement who meets lender criteria. Your legal obligations continue as a guarantor unless the borrower repays the loan fully, refinances without you, or another guarantor or pays off the debt.
What are the risks of being a guarantor?
You become liable for the full debt if the borrower misses finance payments. Defaults damage your credit score and appear on your credit report. Lenders may pursue legal action against you for unpaid debt. Your ability to borrow decreases while supporting someone else's loan, which can influence future credit applications. Relationships suffer when payment issues arise.
Do guarantors get credit checked for car finance?
Yes, guarantors undergo a credit check during the application process. Lenders assess your credit score and financial stability including income, employment status, and existing financial commitments. This check appears on your credit report. Lenders verify you can afford the repayments if the borrower defaults before approving the application.
Will being a guarantor affect my credit score?
Being added as a guarantor creates an initial credit check mark on your report. Your score remains unaffected if the borrower makes all payments on time. Missed or late payments impact your credit score because you become financially linked. Lenders see this association when you apply for credit yourself in future.
Who cannot be a guarantor?
People financially linked to you through joint bank accounts, mortgages, or shared loans cannot act as guarantors. Anyone under 18 or over 75 fails age requirements. Those with poor credit scores, insufficient income, or unstable employment don't meet lender criteria. Lenders reject guarantors who cannot prove they can cover your repayments.
Is a guarantor car loan guaranteed?
No. The term describes the loan structure, not guaranteed car finance approval. Lenders still assess both your income and credit alongside your guarantor's financial position. They reject applications when neither party meets their lending criteria. Approval depends on combined affordability and credit strength, not the guarantor's presence alone.
Can I be a guarantor with bad credit?
No. Lenders require guarantors to have good credit scores without a credit history showing defaults or problems. Your role provides security that the borrower cannot offer themselves. Bad credit means you cannot demonstrate reliable repayment behaviour. Most lenders set minimum credit score thresholds that exclude people with poor credit from becoming guarantors.
