Car Finance for Young Drivers

The cheapest way to finance a car is to avoid paying interest charges, which usually means raiding your savings or borrowing from a friend or family member.

However, if you don’t have the savings available or need a car straightaway, you’re more likely looking to take out car finance with a lender offering the cheapest monthly payments.

Note: Don’t assume that the car loan with the lowest monthly repayment is the cheapest finance option. You may have paid more interest charges by the time the contract ends.

A PCP loan will give you the cheapest monthly repayments. The downside is that you won’t own the vehicle because you’ll only borrow the amount the car will depreciate over the contract period. You’ll have to pay the balloon payment if you want to own the vehicle.

Other finance options, such as HP or a personal loan, have a higher monthly repayment, but you will own the vehicle once the final payment is made.

No, when you apply to get a quote through Autedia, our lender partners will carry out a soft credit check to find out whether they can offer you an approval in principle. This soft credit check won’t affect your credit score. It’s only if you choose to proceed with the loan offered that a hard credit check will happen, which will be marked on your credit report and can impact your credit score.

Yes! Our online car finance calculator is a great way to find out how much you might need to pay for your car deal.

Simply enter the amount you’d like to borrow and your ideal loan term and select the credit band that best suits your profile (Excellent, Good, Fair, or Bad). The calculator will then work its magic to produce an estimate of your monthly repayments.

Note: the car finance calculator is only an estimate. Your monthly repayments may be higher or lower depending on your individual circumstances and the car you want to buy.

Your car finance eligibility will depend on the lender that you apply with. Each lender has different eligibility criteria that they consider.

However, you must be over 18 years old and have been a UK resident for at least three years to qualify for a loan.

When you apply for a car loan with Autedia, you’ll receive a decision in minutes. Our partner CarFinance 247 will then give you a call to confirm your details and then work as quickly as you like; with the help of your dedicated account manager, you could be driving away within days!

Yes, the lenders we work with can accept part exchanges.
A part exchange can be accepted in place of a cash deposit. Part exchanging your current car can reduce the amount you need to borrow and, therefore, lower your monthly repayments.

Having a part-exchange or cash deposit and applying for a smaller car loan amount can also be helpful if you have a bad credit rating, as it minimises the amount of risk to the lender and could make an approval more likely.

If you’ve been refused car finance elsewhere, don’t panic; this doesn’t mean you need to give up on getting a car loan altogether.

At Autedia, we have access to a wide panel of lenders including some who can help people with a variety of circumstances, including those with bad credit. These lenders also won’t carry out a hard credit check (and potentially affect your credit score) unless you have been approved in principle and chosen to accept the deal offered.

Working with a wide panel of lenders allows access to buyers with a range of credit histories to get car finance – and drivers with a fair credit score are no exception.

Everyone has a different credit story, and each car finance application is reviewed individually, taking several factors into account (not just your credit score).

If you have a fair credit score, it’s likely that one of the lenders on our panel may be able to offer you a competitive car finance deal.

Yes, you can buy a car from any reputable UK dealer!

Once you’ve received your approval in principle, you’ll also get access to more than 100,000 vehicles on the car search.

Simply save the cars that catch your eye, and you’ll receive a tailored quote, matching that vehicle. Let your dedicated account manager know and they can do the rest.

Alternatively, you may choose a car from an online car listing site like AutoTrader.

Remember, your account manager is ready and waiting to help you find a car that matches your requirements and your budget.

Although car finance loans with no deposit are available, paying a deposit can reduce the amount you need to borrow and encourage the lender to look favourably on your application.
If your loan is for a lesser amount, your monthly repayments will often be lower as well; alternatively, you could reduce the length of the loan term.

While there is no set deposit amount when buying a car on finance, 10% of the car’s value is typically considered good.

However, don’t leave yourself short; you’ll need to have funds available to cover insurance, unexpected repairs, and running costs.

Yes, you can end your car loan early by paying the settlement figure.
The settlement amount is calculated based on the outstanding loan balance, less any future interest charges. Some lenders may also charge an early repayment fee.

What is APR? APR stands for Annual Percentage Rate.

It represents the annual cost of borrowing on a credit card or loan like car finance and includes interest as well as any other charges you may have to pay, such as an annual fee.

Your credit score will typically impact the loan APR percentage offered to you.