Car finance hub

Do you understand the do's and don'ts of taking out car finance? Knowledge is power when searching for the car loan or lease that suits you best

Car finance explained

Affording a car once you have passed your test is not as daunting as you may think. Our finance pages strip back all the jargon and present all the facts to you in a straightforward manner. Read through the sections below to make an informed decision on your choice of finance options.


Types of car finance for young drivers (Quick Read)

car finance for young drivers

Find out the types of car finance available to you...

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Car Hire Purchase (HP) finance

car hire purchase for young drivers as seen young women in her new car bought on hp

HP finance available even if your credit score is not good...

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Personal Contract Purchase deals (PCP) “leasing”

PCP (Personal Contract Purchase) car finance, sometime called a lease for young drivers

PCP what people mean when they talk about leasing a car...

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Car lease deals for young drivers

PCP (Personal Contract Purchase) car finance, sometime called a lease for young drivers

PCH an alternative to a Personal Car Purchase...

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Guarantor car loans

guarantor car loan for bad credit

Bad credit! Find a Guarantor and still get a car loan...

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Personal car loan

Personal car loans

The car is not secured but you need a good credit history...

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Before you apply for finance

This section will help you understand what information is needed to obtain for car finance and our jargon buster blows apart the banker language. We also look at what you can do to improve a poor credit rating.


Before you apply for car finance! (Quick Read)

before you take out car finance

Do your homework before you apply for car finance...

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Can I buy a car with a poor credit score?

buying a car with poor credit rating

With poor credit finance, the borrowing will cost more...

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How to apply for a car loan

car finance UK

Learn the Do's & Dont's of getting car finance...

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Credit score for car finance

Credit rating to buy a car

Do you realise how important your credit rating is?...

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Car finance jargon

Finance Jargon Buster

Balloon payments? I want a car, not a party!...

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Young Car Driver can help you apply for car finance and check your credit rating. Check out the sections below.

Useful links – car lease deals

The Finance & Leasing Association
Financial Conduct Authority

Cars for young drivers

Cars for young drivers with free insurance Scheme to.....

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Car finance for young drivers

Are you a looking for a Car Loan? Young Car Driver...

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Top FAQs

Can I buy a car with poor credit?

Yes! You can buy a car with a with poor credit (credit score of between 225 and 350), but you may have to pay a higher APR or need a family member or friend to be your Guarantor. Read more about improving your credit rating in our Finance Hub. ... 

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What is a Guarantor Car Loan?

With a guarantor loan, you need someone who can guarantee the loan should you fail to make the repayments. Your Guarantor could be a family member or friend; they will need to: Be aged between 17 and 75. Have a Good credit rating and preferably be a house owner (but not essential). Read more about ... 

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What does PCP mean?

Personal Contract Hire. Personal Contract Purchase deals are available from car dealers and manufacturers, but taking out your PCP with a finance company will allow you to select a car from any dealer you choose. PCP deals are between three and four years and require a deposit usually equal to three months payments. Read more ... 

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Can I get car finance?

Absolulely…Car finance is available for most young drivers regardless of credit history.  The process of applying for a car loan from is easy and stress-free, and the benefits include: Regardless of your credit status all applications considered. A decision is usually available in minutes. Read more about applying for Car Finance in our Finance Hub. ... 

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Car Loans and Finance Guide for Young Drivers

How to apply for a car loan – Prepare an budget before applying for car finance to see how much you can afford, there are the monthly repayments on the car loan as well as the entire car running cost to consider. When you do buy a car on finance, you are in reality making two purchases, the car, and the loan. Make sure you get a good deal on the price of the car as well as the best APR rate available on loan.

Credit Rating – Any time you apply for a loan or finance the Lender will check your credit score before making a decision. Find out your credit rating before you apply for a loan.

Car finance options for young drivers – What do all these different loans mean? PCP, HP, PCH, Personal car loan, Guarantor car loan. Find out the best car finance option for you.

Personal Contract Purchase (PCP) – With a PCP Car Loan young drivers can return the keys when the agreement ends and the repayments are less than with HP car finance.

Car Hire Purchase (HP) – At the end of an HP agreement you will own the car, but until then you are not the owner and cannot sell the vehicle without the Lenders permission.

Car Lease Deals (PCH) – With an Young Driver Car Lease you should be able to drive away in a new car because with leasing (or renting) the monthly repayments are less than for other forms of car finance. However, you will never own the car, and you will have to return it at the end of the car rental agreement.

Personal Car LoanYoung drivers applying for a personal car loan will need an excellent credit rating because personal loans are unsecured and you will own the car straight away.

Guarantor Car LoanWho can act as Guarantor on your car loan? Everything you need to know about a Guarantor loan! Suitable for young people with a poor credit rating or who have not applied for credit before.

Car Finance Jargon – Do you know your car finance buzzwords? What’s a Balloon payment? Do you know what a GMFV is? Be wise and do your homework before applying for a car loan.