Can 19 year olds get car finance?

[vc_single_image image=”32869″ img_size=”article-image”]You’re nineteen and you need a new car. Great! Getting a new car is probably the biggest purchase you will have made so far. So, naturally, it’s a very exciting time.

Whichever brand you’re looking at buying, getting a new car, an actual new car not one that has been on the road longer than you’ve been on the earth, is a huge deal.

The thing is, buying a car outright probably isn’t a viable option right now. No doubt you’ve been weighing up the options and after ruling out a cash purchase, you might be wondering if you can get car finance.

The good news is, yes you can, 19-year-olds can in fact, get approved for car finance.

However, there are some things you should know first. At OSV, we talk to young drivers looking at car finance options all the time, so we’re going to explain exactly how a youthful 19-year-old can get car finance and any problems they might encounter.


Can a 19 Year Old Get Car Finance?


Of course!

Dealerships and finance houses are very open to securing young people a finance deal. This is because, at 19, your financial commitments aren’t as broad as someone older.

For example, you probably don’t have a mortgage, and there’s a good chance you don’t have a family to support. This means that the only substantial amount of money coming out of your account every month is for your car. This is extremely appealing to lenders.

The lack of financial commitments also means your credit rating is likely to be unblemished, another appealing trait in the eyes of the lenders.


Will I Need a Guarantor To Get Car Finance?


There is one thing to consider, however. And that is that the finance company, broker or dealer will request that you get a guarantor on board. This will be to help improve your chances of securing car finance.[vc_single_image image=”32865″ img_size=”article-image”]

What is a Guarantor?

I’m so glad you asked.


A guarantor is a person that takes on your payments if you cannot pay them. So, you miss a payment, your guarantor will pay instead. A guarantor is a pretty common concept, but nowadays it’s mainly used by landlords or mortgage companies.

Who Can Be A Guarantor?

A guarantor has to be someone who;


  •         Has a strong credit rating
  •         Is 21 years old or over
  •         They cannot be linked to you financially
  •         Usually, a guarantor is a family member or a close friend. But, it can also be a work colleague if you wish.


Being a guarantor is a big decision, so it’s something that you both have to think about carefully before you agree to sign any documents. For more information, you can read our article on getting car finance with a guarantor.


Can a 19 Year Old Get Car Finance Without a Guarantor?


There is a chance that you can get car finance without using a guarantor. But, it cannot be guaranteed. This is because although having no financial commitments is a good thing in the lender’s eyes, it could mean that you have a very scarce looking credit report, if one at all.

This means that lenders cannot be sure that you will pay on time because you haven’t got a very large credit history telling them that you will do so. It’s not your fault, of course, but it does impact your chances of getting car finance.

You will most definitely boost your chances of getting car finance if you use a guarantor. So it’s definitely something to consider.[vc_single_image image=”32866″ img_size=”article-image”]

Can I Get Car Finance If I’m at University?


So you can get car finance if you’re 19, we’ve established that. But, what if you’re also a University student?

Notoriously known for being broke most of the time, is it possible for a student to get car finance?

Yes, students can get car finance. Essentially, as long as you can prove you can make the monthly payments, there’s no reason for a student to be denied car finance. You will most likely be asked to provide a guarantor, though.

What Are The Finance Options For A Young Driver?


The finance options available for young drivers are the same as for every driver. Those are;



They are all pretty similar, but there are some differences.

A hire purchase is where you make monthly payments for a set period of time. Once that time is up, you own the car.

A personal contract hire is essentially where you rent a car for a period of time, usually 1 to 5 years. Once that time is up, you hand the car back.

A personal contract purchase, however, has more flexibility at the end of the contract.

At the end of a personal contract purchase, you have three options;

  •     You pay off the MGFV and keep the car
    • The MGFV is the minimum guaranteed future value
    • This is how much the car is estimated to be worth at the end of the contract. The price is pre-determined at the start of the contract.
  • You hand the car back and get a new one
    • Subject to mileage and condition of the vehicle
  • Alternatively, you can part-exchange the vehicle. Any equity can go towards the deposit for your next vehicle.


I’ve only touched upon these options, but you can find out more by downloading our personal leasing eBook.


How Much Will the Deposit Cost?


As you are a young driver, only 19, then the chances are that you will be asked to put down a larger deposit.

Sometimes, these deposits can be as big as 30%. This is because the lender needs some sort of assurance that you will be able to make your payment.

Ultimately, though, it depends on what car you’re looking at and your ability to pay.

So, 19 year olds can get car finance. However, it might not be as easy as you’d hoped. The chances are lenders will ask you for a guarantor. But, it’s important to remember that as long as you can prove you can pay on time, lenders will try to ensure that you get car finance, and that you get to show off your shiny new car. 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