Young Drivers Car Finance

As a first-time or young driver securing car finance, finding the right car can be incredibly daunting. Our expert team here at Carplus specializes in car finance for young drivers, providing you with the best car finance deals tailored to your needs and budget. Let us help you hit the road in style and without breaking the bank.

Can you get Car Finance at 17?

If you are only 17 years old, you are not allowed to sign a car finance agreement until you turn 18. There are two ways out of this situation. The first is to buy a car with your savings (if they suddenly allow it). The second is to wait until you are 18 and apply for car financing.

Can you get Car Finance at 18-19?

At age 18-19, you are already eligible to apply for young driver car finance in the UK. But here, your lack of credit history can get in the way. Also, lenders may turn you down because you don't have a steady job and income or a small track record. Use our car finance calculator to check if your salary would be enough to make your monthly HP or PCP car finance payment. However, our car finance calculator cannot guarantee that the estimated will not change when you apply for a young drivers car finance deals.

Is young drivers' car finance difficult to get?

Before diving into the available options, it's crucial to understand why young drivers often face challenges when applying for car finance. Here are some key reasons:

1. Young drivers are more likely to be involved in accidents: Statistics show that drivers under the age of 25 account for around 85% of all serious road accidents in the UK. This perception of increased risk makes potential lenders wary about providing finance to young drivers, as they bear the responsibility for the car during the finance agreement.
2. Higher interest rates: Due to the perceived higher risk associated with young drivers, lenders may impose higher interest rates on finance agreements. This means that young drivers may end up paying more in interest over the loan term, making the overall cost of financing a car higher.
3. Limited credit history: Young people typically have limited or no credit history, making it challenging for lenders to assess their financial experience and money management skills through traditional credit checks. This lack of credit profile poses a hurdle when seeking car finance.
4. Limited employment history: Young drivers often have limited work experience and may be in the early stages of their careers, which can impact their eligibility. Lenders typically prefer borrowers with a stable employment history and regular income, making it harder for young drivers to meet these requirements.
5. Do not have a steady income: There are few people between the ages of 17 and 21 who already have a steady, significant income. And that has a direct impact on your ability to pay back the car finance. That's why lenders in the UK are reluctant to provide car finance for first-time drivers.

Unfortunately, many lenders consider individuals aged 17 to 21 as younger drivers, less experienced and responsible, both in terms of driving and money management.

How do young drivers get car finance?

Despite the challenges, Carplus is here to help you obtain car finance, even if you have little or no credit history. We understand that everyone starts somewhere, and we have options available to assist you in securing young drivers' car finance. Our team will guide you through the process, taking into account your unique circumstances.

Young drivers' car finance options available in the UK

When it comes to financing, used car can often be the most cost-effective solution for young drivers looking to own their first vehicle. At Carplus, we specialize in used cars on finance for young drivers, ensuring you have access to a wide range of affordable options.

Car finance allows you to spread the cost of your car into manageable monthly payments. Once a potential lender verifies that you have a regular income to support these payments, you can secure a beneficial car finance deal. Let's explore the different options available to young drivers:

Hire Purchase

This Hire Purchase (HP) finance option can be beneficial for young drivers and first-time buyers in several ways. Firstly, it allows them to spread the cost of the car over a fixed term, making it more affordable and manageable within their budget. By making regular monthly payments, they can gradually build equity in the vehicle until they eventually own it outright at the end of the finance term. Hire Purchase agreement can be particularly advantageous for those who plan to keep the car for a longer period of time, as they will have full ownership and can avoid the costs of returning or upgrading the vehicle.

Personal Contract Purchase

Personal Contract Purchase (PCP) car finance for young drivers can offer flexibility and lower monthly payments compared to other options. With a small deposit and fixed monthly payments, PCP enables them to drive a newer, more expensive car that may have been otherwise unaffordable. At the end of the agreed loan period, they have the choice to either make a balloon payment (or final payment) to own the car or return it. This flexibility allows young drivers to assess their financial situation and make a decision based on their financial circumstances, whether they prefer to keep the car or switch to a different model.

Personal Contract Hire

Personal Contract Hire (PCH) can be an attractive option for young drivers and first-time buyers who are not interested in owning a car outright. With PCH, they can enjoy the benefits of driving a new car without the responsibilities of ownership, such as vehicle maintenance and depreciation. This option often includes additional benefits like road tax and breakdown cover, making it more convenient and cost-effective. Additionally, since there is no purchase involved, the monthly repayments for PCH tend to be lower than other finance options, making it more affordable for young drivers.

Guarantor Loan

While a guarantor loan can provide young drivers and first-time buyers with the opportunity to purchase a car outright, it may come with some drawbacks. On the positive side, by borrowing money from a bank or lender, they can own the car from the beginning and have full control over it. However, it's important to note that obtaining a loan may be more challenging for young drivers due to their limited credit history. It's crucial for young drivers to carefully consider the terms and conditions, including the repayment period and interest rates, before opting for a guarantor loan.

Personal Loan

When it comes to finance options, a personal loan provides an alternative route for young drivers and first-time buyers. With a personal loan, you can borrow money from a bank or lender to purchase the car outright. This option can be appealing to those who want full ownership of the vehicle from the start, without any restrictions or limitations. By repaying the loan directly to the lender over time, similar to a cash purchase, you have control over the car and can customize it to your preferences. Additionally, it offers flexibility in terms of choosing the car you want, as you are not limited to specific models or makes offered by finance providers.

What cars are popular among first-time and young drivers?

When it comes to first-time and young drivers, there are several car models that tend to be popular choices. These vehicles not only cater to their needs, but also align with their budget and preferences. Many car manufacturers offer attractive car finance deals specifically designed for young drivers, making it even more accessible for a young person to get behind the wheel of their dream car.

One popular choice among young drivers is the Ford Fiesta. Known for its affordability, reliability, and stylish design, the Ford Fiesta has become a go-to option for those seeking their first car. With its compact size and fuel efficiency, it is an ideal choice for urban driving and navigating through tight spaces. Carplus offers some of the best car finance deals for the Ford Fiesta, making it a budget-friendly option for young drivers.

Another car that often appears on the radar of first-time buyers is the Volkswagen Polo. Renowned for its quality craftsmanship, safety features, and comfortable ride, the Volkswagen Polo strikes a balance between style and practicality. Its reputation for reliability and long-lasting performance makes it an attractive choice for young drivers seeking a dependable vehicle. Carplus offer competitive car finance deals for the Volkswagen Polo, making it an enticing option for young drivers.

Additionally, the Vauxhall Corsa is a popular choice among first-time and young drivers. This versatile hatchback offers a range of engine options, practicality, and affordable running costs. Its compact size makes it easy to manoeuvre, while its comfortable interior and user-friendly technology add to its appeal to new drivers. Carplus recognize the popularity of the Vauxhall Corsa among young drivers and offer tailored car finance options to suit their needs.

Contact Carplus if you want to get car finance for young drivers

If you're a young driver or a freshly licensed motorist, Carplus is here to assist you in obtaining car finance deal. Our team of experts will guide you through the process, considering your specific circumstances and providing you with a suitable car finance agreement with options tailored to your needs. With our support, you can make your dream of owning a car a reality. Contact us today to discuss your car finance options!

At Carplus, we understand that each individual's situation is unique, and we're committed to helping you find the best car finance deal if you are a young driver.