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Car Finance With Guarantor

Guarantor Car Finance

  • Competitive PCP & Hire Purchase quotes from an extensive panel of lenders
  • Get the best available rates on cars from £15,000 – £250,000
  • Use a Trustpilot 5-Star rated team with expert knowledge
  • Rates start from 8.9% APR with a representative APR of 8.9%*

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Car Finance With Guarantor


Get competitive car finance deals by comparing a wide range of guarantor car finance products

A guarantor car finance deal is a way of borrowing money to buy a car where someone else agrees to cover the repayments if you can’t. This can be a family member or friend, and it’s a way of getting finance if you have a bad credit history or are self-employed.

Guarantor car finance deals are becoming increasingly popular, and Quotezone could help you save time and money by comparing a wide range of deals in one place.

 

Can I get car finance with guarantor?

Yes, you can. If you have poor credit scores due to rocky credit history, guarantor loans are a great way to get car financing fast.

 

How does a guarantor work for a car?

With guarantor car finance, someone else agrees to cover the repayments if you can’t. This means that if you default on the loan, the guarantor will be liable for the repayments.

 

Can you get car finance with bad credit and a guarantor?

Although numerous finance options necessitate a good credit score, guarantor loans are perfect for people with a limited credit history or low credit scores. Guarantor loans are therefore available to individuals from all backgrounds, including those with bad credit.

 

Does a guarantor own the car?

Guaranteed car finance is quite similar to a regular car finance agreement. You (not the guarantor) acquire the vehicle, but do not fully own it yet. Instead, you pay monthly instalments until the end of your contract period and then the car becomes yours.

 

Do guarantors get credit checked?

Guarantors are typically credit-checked to ensure that they are able to make the necessary repayments if you default on the loan. This is to protect both you and the lender. However, the credit check is only a “soft” check and will not affect your guarantor’s credit score.

 

Who qualifies as a guarantor?

A guarantor is typically a family member aged 18 or older, who has solid financial standing. The guarantor must also own their own home in the UK. You can also ask close friends to act as guarantors, as long as they meet the above criteria.

 

What are the benefits of guarantor car finance?

There are a number of benefits to taking out guarantor car finance, including:

  • You may be able to get car finance with poor credit scores
  • The interest rates on guarantor loans are often lower than those offered on other types of bad credit car finance
  • You may be able to borrow a larger amount of money than you would with other types of bad credit car finance.

What are the risks of guarantor car finance?

There are a few risks to consider before taking out guaranteed car finance, including:

  • If you default on the loan, the guarantor will be liable for the repayments
  • The guarantor may be asked to provide security against the loan, such as a property or savings account.

Can I get a new vehicle with a car finance guarantor? 

Yes, you can definitely purchase a new car even with poor credit if you take out a car finance loan with the help of a guarantor. Depending on your credit score, you may need a guarantor in order to secure your car loan. 

How to get car finance with a guarantor

 

How do I find a guarantor for a car loan? 

Many people choose to use close friends or even family members as guarantors. However, you should keep in mind that you risk muddying the relationship should you fail to meet repayments and your guarantor has to step in. If you have never used a guarantor for a loan before, do your research before deciding to proceed! 

 

How does car guarantor car finance work?

A guarantor car finance loan works in the same manner as a normal loan. The only difference is that your guarantor will have to provide their financial details and sign a contract agreeing to pay off your debt if you fail to make payments. 

 

Can you finance a car without a guarantor? 

Yes, if your credit history is healthy, you can be accepted for a car loan without the help of a guarantor. If you suspect that your credit score isn’t great, we recommend checking it out and thinking twice about applying for car finance. Other lenders may be able to see where you have been rejected for car finance and this can have even more of a negative impact on your credit score.

 

Will my guarantor have to pay for my new car? 

No, your guarantor will only be required to make loan repayments on your behalf if you fail to keep up with making them yourself. 

 

Can I use a guarantor for a used car?

Yes, you can take out a guarantor loan for a used car. If you cannot secure car finance without the help of a guarantor, you may have to wait to improve your credit score over some time before reapplying for car finance. 

 

What are the car finance guarantor requirements? 

Guarantors need to be aged 18-75 years and have a good credit score as well as positive debt management history. A guarantor is put in place to pay the debt on your behalf if your own financial situation changes or you struggle. You will not usually need a guarantor for any loan unless your credit history is poor. If you cannot take out a loan without the help of a guarantor, we advise that you hold off on taking out credit and instead focus on building a healthier credit score.

*Representative Example – Personal Contract Purchase: Cash Price £15,000.00, Deposit £500.00, borrowing £14,500.00 over 4 years at 8.9% Representative APR (fixed). 47 monthly payments of £228.99 followed by a final payment of £7,560.00. Total cost of credit of £3,832.53 and total amount payable of £18,832.53. Based on 8,000 miles per annum, excess mileage charges will apply if this is exceeded. Finance subject to status 18+ only. We are a credit broker and not a lender. Magnitude Finance is a trading style of DSG Financial Services Ltd. DSG Financial Services Ltd is a company registered in England & Wales with a company number 02313903. Our VAT registration number is 511678843. DSG Financial Services Ltd is authorised and regulated by the Financial Conduct Authority under firm reference number 649675

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