Can I get finance for my first car?
Yes, first-time buyers can apply for car finance. The lender checks whether you meet its requirements and can afford the payments. Getting finance isn't certain.
You don't need to have owned a car before. Your income, spending, existing debts and credit record matter more than whether this is your first set of keys.
The lender decides any application and provides any finance. Requirements vary by lender, including age, income, residency and driving licence rules.
How old do I need to be?
Car finance lenders generally require you to be at least 18. Some set a higher minimum age. Check the requirements before making an application.
Passing your driving test doesn't mean you can automatically get finance. You still need to meet the lender's checks and show that the payments are affordable.
If you're a student or work part time, explain your income clearly. Whether that income is accepted, and what evidence is needed, varies by lender.
Don't put an agreement in someone else's name while hiding who will use and pay for the car. Explain the planned arrangement openly before applying.
Can I get car finance with no credit history?
It may be possible. No credit history means a lender has less information about how you've handled borrowing. It isn't the same as having missed payments.
Some lenders may consider applicants with a limited credit record. Others may need more history. Your income and spending still need to support the payments.
Check your credit reports for errors. Make sure your address details are accurate and register to vote at your current address if you're eligible.
You don't need to take on unnecessary debt just to build a record. Paying existing commitments on time and keeping your details accurate are sensible starting points.
Will applying affect my credit record?
Ask what credit search will happen before you proceed. A hard search leaves a record that other lenders can see. Several applications close together can affect future lending decisions.
A quote request and a full credit application aren't always the same step. Ask when a search happens, what type it is and who carries it out.
Don't assume every website or lender follows the same process. Read the information shown before submitting your details, and ask about anything you don't understand.
Do I need a guarantor?
Not necessarily. Some finance products may allow a guarantor, but availability and requirements vary by lender. Many products don't offer this option.
A guarantor agrees to take responsibility for payments under the terms of the agreement if you don't pay. That can put their money and credit record at risk.
A willing guarantor doesn't mean a lender will accept an application. Both people need to understand the agreement and any checks involved.
Ask whether a guarantor is possible before relying on it. The person considering that role should read the terms carefully and seek independent advice if needed.
Should I choose HP, PCP or a personal loan?
Start with whether you want to own the car, how much you'll drive and what you can afford overall. Each option works differently.
- HP: you pay towards ownership. The car becomes yours after all required payments and any purchase fee.
- PCP: you leave a larger final payment until the end. Paying it is necessary if you want to own the car.
- Unsecured personal loan: you buy the car and repay the loan separately. Selling the car doesn't clear the loan.
PCP has mileage and condition rules if you return the car. Check these before signing, especially if your work or travel plans could change.
Read HP versus PCP and our guide to car loans for the main differences.
Do I need a deposit for my first car?
Deposit requirements vary by lender and product. Some options may allow no deposit, but that doesn't remove the affordability checks or make finance certain.
A larger deposit reduces the amount you need to borrow for the same car. Keep enough money aside for insurance, essential bills and unexpected repairs.
Ask when any deposit becomes payable and whether it's refundable if the purchase doesn't go ahead. Get the terms in writing before paying.
How much will first car insurance cost?
There isn't one price for new drivers. Insurers consider factors such as your age, address, driving experience, mileage and the car itself.
Get insurance quotes for the exact car before committing to finance. A car with manageable finance payments can still stretch your budget once insurance is added.
Check the cover required by the finance agreement. Look at the excess, exclusions and total cost, including any extra cost for paying monthly.
A policy using a driving monitor may be an option. Check restrictions, how driving is assessed and what happens if you break the policy terms.
Describe the main driver honestly. Naming someone else as the main driver when you do most of the driving can invalidate insurance and may amount to fraud.
What else should I budget for?
Allow for fuel or charging, vehicle tax where payable, parking, servicing, tyres and repairs. Include MOT tests when due and any local driving charges.
Work out these costs before setting a finance budget. Leave some room for bills you can't predict, rather than spending every spare pound on the monthly payment.
Read the interest, fees and total amount payable on any quote. A longer agreement may lower the monthly payment but increase the overall interest cost.
What rights do I have after signing?
Many consumer credit agreements give you 14 days to withdraw under the Consumer Credit Act 1974. Check your agreement for when that period starts.
Withdrawing from the credit doesn't automatically cancel the car purchase. You must repay the credit and interest due within 30 days of giving notice.
For consumer HP or PCP, the finance company is responsible for the car's quality under the Consumer Rights Act 2015. Report problems promptly and keep evidence.
Citizens Advice explains withdrawing from credit agreements.
What if I can't keep up the payments?
With HP or PCP, the car may be taken back if payments aren't kept up. Missed payments can also affect your credit record.
Speak to the lender early if money becomes tight. StepChange offers free debt advice. Don't stop payments without understanding the consequences.
How do I get a first car finance quote?
Fill in the form to get started. A car finance specialist then gets in touch, explains the options and gives any quote and any advice.
Have your income and spending details ready. Ask about the full cost, insurance requirements and what happens at the end before deciding.
Updated 7 November 2026
