Can I get car finance if I’m a young driver?

As a young driver you probably have little to no credit history, making it more difficult for lenders to assess your ability to make repayments. This means you’re less likely to get car finance when you need it. Luckily, there are steps you may be able to take to build your credit score.

Alternatively, you could consider getting a guarantor loan, which allows someone like a parent or friend to ‘guarantee’ you’ll pay the debt back.

At 1Plus1 we decided it was time that someone offered a loan that didn't rely purely on credit scores – just on whether customers could make the repayments without any hardship or problems for the duration of the loan.

We make sure that all our customers can afford any credit we give them.

What should I ask before applying?

Before applying for a loan, credit card or another form of credit to finance your new car, here are some key things you should ask yourself:

• How much do you need to borrow?
• How much can you afford to repay each month?
• What sort of car do you want?
• Is it a fixed or variable rate? If it’s variable, could you afford a rate rise?
• How long do you want to spend repaying the loan?
• How much are you willing to pay in interest overall?
• Do you want to own the car, and how soon?
• How long before you replace your car again?
• If you lease, are you comfortable with a mileage limit? How much mileage will you do?
• Are there additional costs involved, e.g. extra insurance or penalty fees?

Remember, getting a car involves ongoing costs. Insurance, road tax, MOTs, fuel, repairs have to be paid for. Make sure you can afford the monthly repayments, all your other financial commitments and the costs of running a car before you commit to a car loan. Missing repayments can have a serious impact on your credit rating, making it harder for you to get credit again in the future.

When you’ve got your car loan, you must manage your repayments responsibly to protect your finances and your credit score.

Here are some top tips to follow

• Keep to your monthly repayments – make them in full and on time to avoid extra charges and negative marks on your credit report
• Ensure you have enough to cover your repayment by budgeting for the month ahead.
• Taking out more credit while you’re paying off your car finance loan could put your finances under pressure and lower your score

1Plus1 offer personal loans backed by a guarantor, subject to both the borrower and guarantor meeting our affordability and credit worthiness criteria.

If you think you may be interested in a 1Plus1 Loan, please give us a call on 0330 1200 313 and one of our friendly staff will be more than happy to discuss the process with you, or start your application here.