Are you thinking of doing a part-time job to manage the cost of purchasing a car? Will it help you afford the amount you have to pay outright? Now, there is another option for you, i.e. car finance for students. It is a perfect financial provision for students who aspire to become car owners.
Advanceloanday can arrange a bespoke finance offer for you in no time. It means you do not have to bother your parents for money. You can now sponsor this car purchase without any delay, pass the driving test and leave the finance aspect to us.
We understand how vital it could be for you to have a car. Still, this car financing source is not applicable if you are yet to reach 18 years of age. You must attain the legal age to be eligible to sign the finance agreement. As a result, arrangements may not be possible on car finance for 17 years old. In that case, relying on personal cash reserve to buy the car or waiting till you reach the perfect age is advisable.
Furthermore, car finance for students under 21 but above 18 is comparatively easy to obtain if they carry a valid driving licence. Since they have less time to build a credit history, we will accept their unfavourable scores. The acceptance chances improve with your steady income source.
To understand this, you must know why young drivers face denial from car finance providers. The lending experience is different when arranging car finance for mature students. Knowing these factors can help you decide the likelihood of getting acceptance from us.
Accident probability: Young drivers frequently lose control of their cars on the road, which may result in accidents. The lack of maturity causes them to pay attention to distractions. This type of ignorance while driving can only be fatal. However, a mature driver can tackle this restlessness while driving.
No acceptable income source: When young, you bother less about your expenses. You borrow money from your parents to meet any financial requirements. You do not even feel the necessity to earn via any means. You need an acceptable source of income to be eligible for car financing.
Inability to provide a deposit: Getting a car is often an impromptu decision during this age. You do not think too deeply, resulting in no saving for the deposit. Maybe, you have not yet started earning also. Therefore, you can't save enough money for the deposit. However, we can provide car financing with no deposit, and come with affordable monthly repayment.
Our lending criteria have already mentioned the age of the applicant, which should be 18 years or above. You are expected to become a mature person by the time to reach this age.
The same age rule follows for someone who has come here to study. Opting for car finance for international students in the UK by meeting a few exclusive conditions is indeed a good option. They must show proof of successful enrolment, residency documents and a relevant guarantor.
Securing car finance is a challenging attempt for any student already struggling with less-than-perfect credit scores. However, with us, you can have the best of both options. All you need to do is practise a few smart steps to ensure you can get the best student car deals in the UK. Find them below:
Upgrade your credit scores
Since you are a student, you may have zero credit history. In that scenario, you must register yourself as a voter first. After that, get a credit card but meet payments on time. It will help establish you as a responsible borrower and add positive credit scores to your credit record.
On the other hand, if you already have bad credit tags, try ways to improve them. Contemplate having car finance for students with bad credit if you cannot wait till your scores upgrade. Repay it on time to see a positive effect on your credit profile.
Add up a stable income source
As a student, you must prioritise your studies first. However, remember that you must pay back the funds you take out for the car purchase purposes. Since you are studying, doing a full-time job will be out of the question.
You can still do a part-time job. Use your spare time responsibly to support payments of your loan. This factor can put you in a better position regarding getting approval.
Choose a car sensibly
Although a car is a luxury purchase, you get one for convenient transportation from home to college and vice versa. Thus, buying an expensive car will not make sense. Instead, you can consider having a used car that is comparatively cheap.
Meeting the requirements of having an expensive car through financing would be difficult for a student. Besides, it can even lower your chances of getting a positive response for approval.
Arrange a bigger down payment
A big amount of deposit will be beneficial because it can reduce the amount you will have to borrow. A small amount of finance would mean low monthly payments and a manageable burden of interest rates. Above all, we will have to lend less money, which means less risk.
Your income means are usually not that stable when you are studying. Still, grab offers that introduce pocket-friendly rates. It is because, in that condition, you can bear the cost without much strain. However, you cannot increase your income for now and do not want to ask your parents for help.
You need to work on a few factors in this scenario, ensuring the benefit of cheap car finance for students. These include:
The cost will depend on the type of car you will get. Do not pick the car option randomly. Make sure you have the required budget for it even when you are borrowing money.
Analyse your usual expenditures to understand how much you can save for monthly payments.
The study phase will end at some point in time. You will start working and your financial condition will alter.
Your affordability will also improve, as new expenses will add up in place of some old ones. In that situation, you can approach refinancing or adjustments in interest rates.
If your earnings are inadequate to support repayments or you have imperfect credit scores, you can approach a guarantor.
The chances of financing at better rates are bright after including the guarantor factor. It also ensures low credit scores and a chance of fetching larger amount to borrow.
Advanceloanday is always striving hard to match the expectations of borrowers. For this reason, we have adjusted our lending conditions so that we can help many students wishing to drive their cars. Transparency in fee structure is our most effective tool to allow borrowers to understand our pricing around car finance for students.
Get in touch with us for a free quote.
You might not feel confident to consider financing, as you are a student with no steady income source. You are apprehensive about the debt it might create for you. However, there is a little twist. Financing does not need you to spend a huge amount of money upfront. Affording the cost of the car is easy for you as payments break down in small parts. You have to cover these instalments according to the repayment schedule. Fetch a free quotation from finance providers and shop for the best offer.
It does not matter what education stream you have chosen. Factors like a dependable source of side income can help you enhance the odds of getting approval for car financing. It ensures that you will be capable of affording monthly payments. Besides, it is well and good if you have saved for a reasonable deposit amount. It indicates that you will have to take out less amount of finance. Dealing with fewer debts is easy, even when your income is low or insignificant.
While calculating the amount of money you will have to earn, remember to use 10% to 15% of your net income for monthly payments. Do not forget about the operational expenses of the car. After rounding up these two elements, you must utilise around 20% of your salary for the car. Based on these calculations, you can determine the earnings you should have to afford car payouts.
When you get car finance with insurance, you will not pay separately for the insurance. Managing money for insurance payments is very hard for young drivers, considering the cost perspective. Nevertheless, insurance cannot come for free. Offers promoting free insurance can misguide you. Choose affordable car finance deals allowing you to pay comparatively less insurance, i.e. already adjusted somewhere inside the finance offer.
Yes, you can use a car financing facility without any guarantor claim. If you can guarantee loan payments on your own, there is no need for a guarantor. You will require the support of another person with a good credit record and stable income only when you cannot pay loans back on time. If you are in a position to cover loan payments on your own and without seeking assistance from others, you can keep aside the guarantor factor.
If you are wondering what you should do when obtaining financing for a car is not feasible, check out the alternatives available here on our website. You can pick any of them as per your preference.
Car loans: You can apply for car loans if you want to purchase a new car or upgrade your previous car. These loans are obtainable at budget-friendly rates. You will not even have to take stress about low credit scores.
Personal loans: It is a type of all-purpose loan option. You can utilise this financing to spend on any necessity. There is no need for you to explain the reason for borrowing in the case of these loans.
Secured loans: Car purchase is a crucial financial goal and would need a substantial amount of money. You can use any asset to procure funds for car buying without dipping into your savings. This collateral will be a backup for repayments.
Unsecured loans: You can opt for these loans if sacrificing your assets is impossible. Besides, these loans are easily accessible for someone living as a tenant with no assets to pledge. Since there is no restraint on the purpose, you can borrow money to get a new car.
A small driving record indicates that you are still a new driver. They can get financing for a car based on a few conditions. They must hold favourable credit scores. Besides, they must establish that repayments will be manageable for them. Getting a guarantor who can manage repayments on their behalf will be the safest option to consider when the driving history is not considered in your case.
Since I was studying, I never imagined that I could own a car that much easier. I was not ready with an upfront amount without, which purchasing a car is difficult. Advanceloanday had made all the arrangements for me in a matter of a day.
-Shannon, Cornwall
A car was a real need, but I could not finalise it because of my financial condition. Thanks to you for providing me with the required financial support. It was because of your assistance I gained the confidence to buy a car
-Tim, Manchester
After a few failed attempts to get financing for a car as a student, I gave up, blaming my poor scores. Later, came to know about you and felt like trying again after seeing your flexible conditions. It was not disappointing this time. I am happy I made that plunge.
-Connor, Leicester
Representative 49.9% APR
Representative Example: Credit Amount - £7,000 for 12 months at £752.73 per month. Total loan repayment amount of £9032.80. Interest Amount: £2032.80. Interest rate: 49.9% pa (fixed). 49.9% APR Representative.