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.
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 most popular ways of spreading the cost are personal loans, Hire Purchase (HP) and Personal Contract Purchase (PCP).
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.
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:
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.
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.
Our guide explaining the different car finance options takes you through the different types in more detail, and will show you how it works.
Students are unlikely to have a long credit history, but you can still get car finance with bad credit.
We have a team on hand to help you with all things car finance – from helping you find a deal to choosing your car.