Car finance with
provisional licence

How to finance a car with a provisional licence?

To finance a car with a provisional licence, follow these steps:

1. Apply for your loan: Decide how much you need to borrow and for how long. Our lenders will review your application for car finance.
2. Receive the money: If approved, the funds will be deposited into your account the same day. Use it to buy your car or for other expenses.
3. Pay it back over time: Repay the loan in monthly instalments over 1 to 5 years, covering the borrowed amount and interest. Stay on track with your payments to build credit and own your car outright. Apply now to start your car finance journey!

What is a Provisional Licence?

A provisional driving licence is a temporary document issued by the DVLA (Driver and Vehicle Licensing Agency) that allows individuals to learn driving on public roads under the supervision of a qualified driver or instructor. It's a vital step towards obtaining a full UK driving licence, enabling learners to gain essential driving experience.

Do lenders offer car finance to individuals with a provisional licence?

Yes, some lenders do offer car finance to individuals with provisional licences. However, they may have specific requirements and terms tailored to provisional drivers with limited driving experience. Contact us to learn more about car finance options available to provisional licence holders.

Can I get car finance with a provisional licence?

Yes, even if you have a provisional licence and not a full UK driving licence, you can still apply for car finance. The amount you can borrow depends on the type of car you want to drive. Most lenders will offer a borrowing limit of around £25,000, which is usually enough for a great new car. Remember, you must be legally allowed to drive the car to get car finance. Having a provisional licence doesn't guarantee passing the full driving test, so lenders might limit the amount you can borrow. Applying for car finance with a guarantor can increase your chances of approval. Contact us at CarFinance to explore your options!

Challenges of Getting Car Finance with a Provisional Licence

Getting car finance with a provisional licence can have some challenges:

• Limited driving experience: This can mean higher insurance costs and fewer choices for cars.
• Higher insurance costs: Because provisional drivers are seen as riskier.
• Restricted car choices: Some lenders might limit the types of cars you can finance.
• Higher interest rates: Lenders might charge more interest to cover the risk.

Despite these challenges, you can still get car finance by showing you manage money well and looking for lenders who work with provisional licence holders. Contact us for help finding the right car finance for you.

Types of car finance for provisional licence holders?

Typically, when someone considers applying for car finance with a provisional licence, two main options are available:

• Hire Purchase (HP): With HP, you pay off the full value of the car in instalments over a fixed term. Once the final payment is made, you own the car outright.
• Personal Contract Purchase (PCP): PCP involves paying for the depreciation of the car over the term rather than its full value. This results in lower monthly payments. At the end of the agreement, you have the option to return the car or make a final payment to own it.

Understanding these finance options can help provisional licence holders make informed decisions about their car purchases. Contact us at CarFinance to explore suitable finance options tailored to your needs. Drive towards your dream car with confidence!

Do I need a guarantor to get car finance with a provisional licence?

While having a guarantor can increase your chances of approval for car finance with provisional licence, it's not always necessary. A guarantor is someone who agrees to cover the loan if you're unable to make payments. However, you can improve your chances of approval without a guarantor by demonstrating a regular income, paying a deposit, or choosing a more affordable car. These factors show lenders that you're capable of managing the financial commitment responsibly.

Explore these options with us at CarFinance to find the best car finance solution for your provisional licence status.

Make a joint application for car finance if you have a provisional licence

Consider making a joint application with someone who has a good credit score and a full driving licence. A joint application differs from having a guarantor, and both applicants must live at the same address. This option is common for provisional licence holders to secure provisional licence car finance

What factors might lenders consider when offering car finance to provisional licence holders?

Lenders take into account several factors when considering car finance for provisional licence holders:

• Age: Younger drivers may face different terms.
• Employment status: Stable employment enhances creditworthiness.
• Credit history: A good credit record improves approval chances.
• Vehicle type: Some lenders have preferences for certain vehicle types.
• Driving record: While important, it may be less critical for provisional drivers.

Are the interest rates different for car finance with a provisional licence?

Interest rates for car finance with a provisional licence can vary based on individual circumstances, lender policies, credit history, employment stability, and the lender's risk assessment. Contact us for detailed information on interest rates tailored to your specific situation as a provisional licence holder.