Can I have a guarantor for car finance?

Can I have a guarantor for car finance?

A guarantor for car finance supports you if you have either a lack of credit history or a poor credit history. Using a guarantor offers lenders the security they need when you borrow money.

When you're in the market for a new car, you'll likely explore options to fund your purchase. You may be considering a Personal Contract Purchase (PCP), Hire Purchase (HP), or a personal loan, all of which you will pay back monthly.

Getting joint car finance or adding a guarantor for a car loan can help you, depending on your financial situation. 

If you're unsure how car finance works with a guarantor, wondering what a guarantor is, or the other options available to you, dive into our guide and have your questions answered.

I want car finance guaranteed, help! 

While no lender can offer a 100% guarantee before your application has been sent, there are ways to improve your chances. Finding guaranteed car finance online can give you peace of mind that your application will be approved without stress or setbacks.

A guarantor car finance agreement means someone with a stronger financial background can support your application, offering the lender extra confidence that full repayments will be made on time. A car loan with a guarantor could open the door to affordable car finance - even if your credit history isn't picture-perfect.

You also have the option of joint car finance to make you more likely to be approved.

With joint car finance, two people's financial situations are taken into consideration when making an approval decision. This could be partners or family members - the main criterion is that the applicants live together.

If you'd like information on the car finance we provide, such as joint car finance, or other First Response Finance services, then you'll find our FAQs useful. We have a dedicated insights and tips section on our website, too!

What is a guarantor, and how does it work for car finance? 

A guarantor is someone who can support a financial application, whether it be for a property rental or car loan. Being a guarantor means helping someone get credit who doesn't have any or has had a bad experience with it. 

The purpose of a guarantor with car finance is that they will be responsible for the repayments if the person who has taken out the loan has missed one or can no longer afford them. 

Just so you know... at First Response Finance, we don't offer guarantor car finance, but we can provide joint car finance!

How to choose your guarantor

Almost anyone can be a guarantor. However, it's usually parents, relatives, or close friends who take on the responsibility. It should only ever be someone whom you trust and who has the financial means to support your loan repayments.

Taking out a car loan with a guarantor or having car finance guaranteed is a considered decision. This is because they'll be required to make your monthly repayments if you can't make them yourself.

The main criteria for a 'good' guarantor include: 

• Over the age of 21 🔞
• Good financial credit history ✅
• Financial stability 💰
• No financial ties to the applicant ❌

The types of guarantors who get approved quicker are those who are homeowners or have at least lived at the same UK address for many years.

You might be wondering how much does a guarantor need to earn? While earnings are not a dealbreaker, if they earn an attractive salary, it will work in favour of a guarantor for your car loan.

Who needs a guarantor for car finance? 

Not every finance application needs a guarantor - it only applies to certain situations. It's likely to be one or more of the reasons below:

• Poor or lack of credit history (young applicants, foreign nationals etc.) 💳
• Low income 💰
• Moved house regularly or between addresses 🏠
• Just started a new job 💼

If any of these instances feel familiar, hopefully, you're now reassured that you could get car finance by asking loved ones for their support. Alternatively, by exploring joint car finance options, you can enjoy peace of mind that another person's income will support your application. 

Once you begin to build your credit score, you'll have the financial freedom to take out a personal loan, consider your car finance options or even become a homeowner with no additional support! 

Explore your finance options today 

Looking into your financing options for your new motor? If the car that interests you is available on Hire Purchase, then our car finance loans could get you on the road. We can offer up to £15,000 and provide the flexibility for you to repay the amount you borrow over 18 to 61 months. Check out our car finance calculator to find out what your repayments could be. 

You can be confident when you reach out to us. Our customers rate us as 'Exceptional' on Feefo, and we've won 'Best Car Finance Provider' at the Consumer Credit Awards for four consecutive years.