Car finance calculator

Good credit
Bad credit
Amount to borrow:
To repay over:
5 Years
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.

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We understand the excitement. You reach 17 years old, race through your driving test, and cannot wait to get a car of your own. The feeling of independence that comes with buying your first car, especially in your late teens/early twenties, is unlike anything else.

But there are a few complications here:

If you are only 17 years old, you are not allowed to sign a loan 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.

At 18, you are already eligible to apply for a car loan. 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.

At age 21, your chances of getting a loan increase - especially if you have a good credit score and a job with a steady income. In that case, you can safely qualify for car finance for young drivers.

Here at Carplus, we offer young drivers several options to choose from. They can select a hire-purchase scheme, a personal contract purchase scheme, or a guarantor loan.

The difficulties young drivers face

There are several reasons for car finance brokers to turn down young drivers. Let us take a look at some of them.

Young drivers cause accidents more often

Young new drivers are more likely to be involved in accidents, especially if they have at least one passenger under 21 in the car. The American Automobile Association concluded this in a report. Young drivers overestimate their ability to drive and are also more distracted by their peers.

Young drivers don’t have a credit history

Because of their young age, lack of permanent income, and lack of large sums of money at their disposal, 17- and 18-year-old drivers do not take out loan deals. That means there's no credit history. And that's one of the most important factors lenders look at when deciding whether to grant a loan.

Young drivers 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 loan. That's why lenders in the UK are reluctant to provide car financing for students and first-time drivers.

Car finance for students with no credit or bad credit

Even if you have no credit history or have a bad credit record, Carplus can help you. Guarantor car finance is a loan where a third party agrees to repay your car loan if you become unable to repay it.

Guarantor car finance is a loan where a third-party individual agrees to repay your car financing loan if you become unable to make the necessary payments. This way, you let the lender know that all fees will be made on time, even if you cannot personally make the repayments. The guarantor is contractually obliged to make payments you are unable to fulfil.

How can first time drivers secure a car loan?

Despite the difficulties that young people face while getting a car loan as a student, there are ways to secure car finance for first-time drivers. In fact, there are six of them! Let us take a look.

1. Build a credit profile

If you are 17-21 years old, you probably don't have a credit profile. And that's okay - it's rare for young people that age to need credit. So to establish yourself as a reliable borrower, get a loan or credit card, and use it responsibly.

2. Be employed

Of course, it's easier said than done, but it does help. A job (especially a full-time one) will not only show potential lenders that you are responsible, but it will also provide you with a reliable monthly income.

The higher your monthly income, the better your chances of getting an auto loan. Having a net monthly income of £1,200 or more will significantly increase your chances of getting a loan.

3. Be sensible with your car choice

Choose your vehicle wisely. Don't choose a too expensive car; a modest car is a more practical choice for a young driver. If you select an expensive car to buy and operate, you will lower your chances of getting a loan.

4. Save for a deposit

Try to set aside some money to make a deposit. The more you set aside, the better you will look in the lender's eyes. In addition, a large deposit reduces the amount you have to pay on your loan, which means less interest.

5. Pay with cash

It's better to buy a car with cash, so you don't have to pay interest on a loan or financing agreement. Also, many companies give you a discount when you pay cash.

6. Get black box car financing

Another excellent option for young drivers would be to choose an insurance policy that includes a black box. This small device is attached inside the car, monitors how the vehicle is being driven and reports it to the insurance company. If you drive safely and responsibly, a lender may reduce the interest on your loan.

Why choose carplus?

  1. Extensive experience and expertise: Our team consists of experienced professionals ready to help and support you in obtaining a loan. We provide loans ranging from £2,000 to £25,000.
  2. Ability to track the application: We provide each client with an application tracker link to track the progress online.
  3. Hundreds of satisfied customers: In the testimonial section, you can see honest opinions from customers who helped finance a vehicle, even with bad credit. Our customers rate us Excellent on Trustpilot.
  4. Professionalism and Ethics First: The Financial Conduct Authority regulates our business, and therefore we only approve applications that are safe in terms of monthly payments.


Now let’s answer some of the most popular questions about car loans for young drivers.

How old do you have to be to get a car on finance

The rules are not so strict here. You have to be between 18 and 75 years of age. You also have to have a monthly income of more than £1,200.

Can a 19-year-old finance a car?

Yes, you can. At age 19, you can apply for car financing. However, it may be difficult for you to get a car loan because of your lack of credit history. Also, many lenders are reluctant to accept financing if you are not working and do not have a regular income.

Can a new driver finance a car?

Of course, a novice driver can do this. However, it may be more difficult for him or her to find a suitable car financing arrangement because of their small driving record. This is likely to affect the number of lenders willing to provide a car loan.

What is a good first car for a 19-year-old?

The main thing here is not to choose a car that is too cool, no matter how much you want it. You're better off avoiding vehicles that are too expensive, have low fuel efficiency, or have high insurance premiums. A more modest car, such as a small town car, is a more sensible choice for those who have only recently passed their driving test.

Do I need to be employed to get approved?

No, you don't have to be officially employed to get car financing. However, it is very desirable. If your lenders see that you are formally employed and have a steady paycheck, they will be much more willing to trust you.

Can an international student finance a car?

Yes, there is such a possibility. If you are an international student, you can apply for a loan. To do this, you need to meet a few conditions: you live in the UK, you are enrolled at an accredited UK university, and you are at least 18 years old. If you are not an EU/EEA citizen, you will need to provide a UK guarantor.

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