Passing your driving test is a big achievement. After weeks or even months of practice, you’re finally ready to enjoy the freedom of driving your car.
Now comes the exciting part: choosing your first car.
Many new drivers don’t have enough savings to pay for a car upfront. Cars are expensive, and saving thousands of pounds takes time.
That’s why car finance can be a useful option. Instead of paying the full amount upfront, you spread the cost over monthly payments that fit your budget.
If you’ve just passed your test and you’re wondering how to get your first car, you’re in the right place.
At CarFinanced, we work with a panel of lenders to help drivers find car finance that fits their budget.
Can I Get Car Finance as a First-Time Driver?
Yes, you can. Many people think they need years of driving experience before they can get car finance.
Lenders are usually more interested in whether you can comfortably afford the monthly repayments than how long you’ve had your driving licence.
If you’ve recently passed your test and have a regular income, you may still be able to get car finance. Every application is different, and the final decision will depend on your personal circumstances.
If you’re unsure where to start, CarFinanced can help you compare finance options from a panel of lenders, so you don’t have to apply to each one individually.
Can I Get Car Finance with No Credit History?
Yes, it’s possible. Many first-time drivers haven’t borrowed money before, so they have little or no credit history.
This isn’t the same as having bad credit. Bad credit means you’ve missed payments in the past.
No credit history simply means lenders don’t have enough information about how you’ve managed credit before.
Some lenders are happy to consider people with little or no credit history. They’ll also look at your income, your monthly expenses, and whether the repayments are affordable.
Every lender has different lending criteria, so approval will always depend on your individual financial situation.
What Do Lenders Look At?
When you apply for car finance, lenders want to know that you can comfortably afford the monthly repayments.
So, they usually look for:
- Your income to see how much you earn.
- Your employment to understand how you receive your income.
- Your monthly expenses, such as rent, household bills, and any existing credit commitments.
- Your credit history, if you have one.
- Your overall affordability to make sure the repayments fit within your budget.
Every lender assesses applications differently, so being declined by one lender doesn’t always mean another lender will make the same decision.
Can I Get Car Finance Without a Deposit?
Yes, you can. Some lenders offer car finance without asking for a deposit, so you may not need to pay anything upfront.
If you do have some savings, putting down a deposit can reduce the amount you borrow, which may lower your monthly repayments.
At CarFinanced, we compare deposit and no deposit finance options from our panel of lenders, helping you find one that’s right for you.
How Much Can I Afford?
Before choosing your first car, think about how much you can afford to pay each month. The monthly finance payment isn’t the only cost of owning a car.
You’ll also need to budget for:
- Car insurance.
- Fuel or charging costs.
- Vehicle tax.
- Servicing and maintenance.
- MOT costs once the car is over three years old.
- Unexpected repairs.
Choosing a car you can afford will make life much easier.
What Is the Best First Car?
Your first car doesn’t have to be the newest or the most expensive. Most people buying their first car want something reliable that won’t cost a fortune to maintain.
When comparing different cars, choose one that’s:
- Reliable.
- Affordable to insure.
- Good on fuel.
- Cheap to maintain.
- Easy to drive and park.
Your first car doesn’t have to be brand new. A well-looked-after used car can save you money and still give you everything you need to drive with confidence.
There’s no need to rush. Pick a car that you like and can afford.
How Can CarFinanced Help?
Buying your first car is a big milestone, and it is normal to feel unsure about how car finance works.
That’s where CarFinanced can help.
We’re a car finance broker. We’ve helped over 1000 customers explore their car finance options. We compare finance options from our panel of lenders to help you find options that are best for you.
Getting started is easy. Fill out our quick online quote, and we’ll check the finance options available from our panel of lenders.
Common Questions About First Car Finance
Can I get car finance at 18?
Yes. As long as you’re at least 18 years old, you can apply for car finance. Whether you’re accepted will depend on your financial situation.
How long does a car finance application take?
Completing an online application usually only takes a few minutes. If more information is needed, the process may take a little longer.
