Assuming your credit profile is
|Car finance rate||XX% APR|
|Cost of credit||£ XXX|
|Total repayment||£ XX,XX.XX|
|48 monthly payments of||
£ 245 /mo
Representative example - Borrowing £5,500 over 4 years with a representative APR of 19.8%, and a deposit of £0, the amount payable would be £162 per month, with a total cost of credit of £2,282 and a total amount payable of £7,782.
Carplus will find the best car loan rate from our panel of lenders and will offer you the best possible deal. We don’t charge fees, but we earn a commission. This does not influence the APR you’re offered in any way.
Getting a car finance with a guarantor is a good option to obtain a vehicle when you cannot apply for a regular loan - for example, if you have bad credit.
Guarantor car finance is a type of loan where a third-party individual is involved and agrees to take over your car loan repayment if you fail to pay your balance in full. A guarantor reduces the risk for the lender, as he becomes responsible for the credit payment that you cannot make.
The process of getting guarantor car finance is similar to any other loan in the UK. When reaching an agreement with the guarantor, fill in the application form, and our specialist will process your car finance request the same way as any other. This credit does not require any upfront deposits or fees.
Besides, you will not have to wait to get financing any longer. We work on eliminating any delays for the approval of your guarantor car finance. The decision depends on various factors, such as the guarantor’s credit rating and employment history. Typically, we get back to the applicant with a financing option for the desired car within 24 hours.
When the loan is approved, the lender is to provide the amount to the guarantor, who then transfers it to the borrower for a car purchase.
When considering car finance with a guarantor in the UK, it is important to take into account the specific guarantor requirements.
Lenders tend to approve car finance when a guarantor owns a home or at least lives at the same address for years and delivers a good guarantor credit history.
Lenders always perform a complete check before approval of guarantor car finance. That is why they require comprehensive data on the guarantor, such as
The outcome of this credit check defines your car financing eligibility.
You might require car finance with a guarantor in several different cases.
If you are unable to make your monthly loan payments, the guarantor will be obliged to do it for you. That means that he will be responsible for paying your car’s financing balance in full. However, you may be issued a County Court Judgement, which will not let you get another loan in the future.
If you wish to apply for a guarantor loan for a car purchase, you will need to provide us with the following details:
To apply for car finance, you need to be:
At Carplus, we focus on meeting our customers' needs and deliver exhaustive support for each car finance request.
If you have bad credit or do not have a regular income, you can get a loan for a car purchase with the help of a guarantor.
Until you pay out the loan, you cannot change the guarantor. First, you need to pay out the balance in full.
No, it is unlikely that you can become a guarantor with bad credit. Lenders perform a thorough check on the guarantor's background, so bad credit is not an option.
The guarantor takes over the borrower's debt if he becomes unable to proceed with monthly payments.
Unless the borrower gets another guarantor or pays out the loan, you cannot withdraw as a guarantor.