A young student leaving home for university

Car finance for students

Students and new drivers can get car finance with Zuto. Apply now or find out more about car finance for young drivers.

Zuto is a credit broker, not a lender. Our rates start from 8.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £9,000 over 60 months with a representative APR of 20.9% the amount payable would be £234 a month, with a total cost of credit of £5,047 and a total amount payable of £14,047.

Car finance for students and young drivers

Having a driving licence is one of the best freedoms in the world – all you need next is a car.

Zuto can help with car finance for students and young drivers alike, even if you’re only applying for a loan with a provisional license. There are some particular challenges, like getting an agreement with bad credit or without a deposit – but we could help.

Car finance can be ideal for students who need a car but can’t afford one outright. By spreading the cost over manageable monthly payments, we can help you find a deal you can afford.

The three types of car finance for students

The three most popular ways of spreading the cost are personal loans, Hire Purchase (HP) and Personal Contract Purchase (PCP).

What to think about

There are some big advantages to getting student car finance. It can help you get into a car that’s cheaper to insure, safer to drive, and more efficient than what you might be able to afford otherwise.

Fortunately, Zuto makes it straightforward to find car finance for young drivers, as we work with a panel of lenders who want to help students find the best possible deal for their own personal circumstance. However, there are some steps you can take yourself, to improve your chances of qualifying for first car finance.

How to improve your chances of getting student car finance

There are a few simple steps you can follow to improve your chances of being eligible for student car finance.

1. Get a part-time job

Having a job can show lenders you have a constant, reliable income and can afford monthly repayments.

If you’re a full-time student, even working part-time can bring in some income, helping lenders trust that you’ll be able to afford finance. However, if you’re not able to have a job during your studies, our panel of lenders may still be able to offer you an unemployed car finance agreement.

2. Know your budget

It’s a great idea to plan your monthly outgoings, to work out how much you can afford. Add whatever incomings you have (student loan, part-time work) and subtract your outgoings.

In addition to what you already have in your budget, there are other costs you’ll need to consider when you have a car:

  • Road tax – road tax varies depending on the car type and its CO2 emissions.
  • Insurance – car insurance is probably the biggest factor, as it can be expensive depending on your age and driving history.
  • Running costs – think about how often you’ll need fuel, and don’t forget servicing and MOT.

It can also often help to budget in a deposit when applying as a student (although we do offer no deposit car finance), to reduce your monthly payment instalments.

3. Improve your credit score

Your credit score can show a lender how reliable you’ll be with repayments. Usually, the better your credit score, the better interest rates you’ll be offered.

There are some simple ways to improve your credit rating, like registering on the electoral roll, having a mobile phone contract in your name that’s paid on time, and even having a student credit card with a low limit. If you have a poor rating, though, don’t worry; you can still apply for bad credit car finance with Zuto.

4. Have a guarantor

A guarantor is someone who agrees to cover your car finance payments if you start to fall behind on instalments. Having a guarantor can improve your chances of being accepted for student car finance, and can even help you land a better deal than if you apply entirely on your own.

However, there’s no need to worry if you don’t have anyone who qualifies, as we also work with lenders who offer car finance with no guarantor.


Car finance calculator

See how much you could borrow

How to get car finance as a student

Our process is the same for every driver – whether you’re a student, a young driver, or someone with an excellent credit history and decades of driving experience. It only takes minutes to get a quote and it’ll have no impact on your credit score.

We can you help you every step of the way. Contact us for support and advice at any point.

  1. Apply for car finance– we’ll ask you for some personal details to help us get started. We’ll run a ‘soft’ credit check, which won’t appear on your credit history, before contacting our panel of lenders to see if they'll approve your application for finance.
  2. Pick a deal that works for you – we’ll talk you through your options to find the car finance agreement that works for you.
  3. Choose your car – we’re AutoTrader’s car finance partner and work with a group of trusted dealers. When you’ve found your perfect car, we’ll run free vehicle checks for you.
  4. Sign your agreement – the lender will make some final checks, which will include a ‘hard’ credit search.
  5. Start driving – once you and the lender are happy, you’re good to go!

Useful information and guides

  • your-cars

    Find out about different types of car finance

    Our guide explaining the different car finance options takes you through the different types in more detail, and will show you how it works.

    Read our guide Arrow Right
  • your-cars

    How to get car finance with a bad credit score

    Students are unlikely to have a long credit history, but you can still get car finance with bad credit.

    Read our guide Arrow Right
  • your-cars

    Talk to the Zuto car finance team

    We have a team on hand to help you with all things car finance – from helping you find a deal to choosing your car.

    Contact us Arrow Right

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