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Do I need a full driving licence for car finance?

While it can be easier to secure a car finance agreement if you have a full UK driving licence, it is possible to get a loan if you have a provisional licence, an EU driving licence, or no licence at all. However, many lenders will ask you to upload a copy of your driving licence to serve as proof of identity.

Is it easier to get car finance with a full driving licence?

One of the requirements many lenders have when assessing your car finance eligibility is whether you have a full UK driving licence. Not only does it reassure them that you’ll likely be the car’s main driver (and you’re not trying to get finance on behalf of someone else), but it can also serve as proof of identity.

Before you apply, make sure your driving licence is in date and the portrait photograph still looks like you. It should also have the same address as your current home. In some cases, if you’ve changed your hair dramatically or altered your physical appearance in another way, the lender might ask you to send a photo of you holding your driving licence for additional verification.

If you’ve lost your licence or can’t provide a copy for any other reason, the lender may be happy to accept a copy of your passport as proof of ID. However, they will also need to request a DVLA mandate to confirm you have a valid driving licence.

Can I get car finance without a driving licence?

If you’ve not yet passed your test or want to buy a car to learn to drive in, you might be looking for a car loan without a driving licence.

While it’s not impossible, it can be more challenging to get approved for a loan as many lenders require borrowers to have a full UK driving licence in place. Others may only approve your application if you agree to pay a higher rate of interest to offset the additional risk.

 

H2: Can I get car finance with a provisional licence?

 

Still learning? Unfortunately, most lenders won’t accept car finance with a provisional driving licence. You still may be able to qualify for a loan, but it can be harder to find a lender willing to approve your application and offer a low APR.

 

 

Related FAQs

If I finance a car, can someone else be the registered keeper?

Most lenders won’t let you finance a car if someone else is going to be the registered keeper. That’s because car loans are tailored to an individual and based on their personal financial circumstances. If you try to take out a loan for someone else and don’t tell the lender, you could be guilty of fronting, which is a type of fraud.

Can I buy a car on finance for someone else?

It’s not usually possible to buy a car on finance for someone else. In fact, most lenders will ask that the person who signs on the dotted line is also your new wheels registered keeper and main driver. Every car finance agreement is tailored to an individual and suited to your personal circumstances.

Can you end a Hire Purchase agreement early?

Yes, there are two main ways to end a hire purchase agreement early:
Settle your finance early
You can request a settlement figure from your lender at any time. You’ll need to pay this figure to end the agreement early and become the car’s legal owner. It’ll typically be made up of your outstanding repayments minus any future interest. An early settlement charge may also apply.

Opt for voluntary termination
Under the Consumer Credit Act 1974, you have the right to voluntary termination once you’ve paid at least 50% of the total amount repayable on your loan. If you’ve not yet reached this threshold, you can choose to pay the difference. Opting for voluntary termination means you’ll hand the car back to the lender and walk away.

What deposit do I need to finance a car with HP?

While no deposit HP car finance is available, putting money down upfront could reduce the amount you need to borrow and improve your chances of securing a loan. Typically, a deposit of 10% of the car’s purchase price is considered good.

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