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What should I do if I can’t find a guarantor for my car finance?

This guide explores alternative options, tips for potential guarantors, and strategies to enhance your eligibility, guiding you through this common hurdle.


For many individuals in the UK, having a car is essential for commuting, shopping, or managing daily life. However, when it comes to financing a car, not everyone has a perfect credit score or can find a guarantor to co-sign. If you’re in this situation, don’t fret. Here’s a guide on what you can do if you can’t find a guarantor for your car finance.

Improving your credit score

1. Regularly check your credit report: Make it a habit to review your credit report at least annually. Rectify any errors you might find, as they can negatively impact your score.

2. Pay bills on time: Ensure that all your bills, including utilities, credit cards, and loans, are paid promptly.

3. Reduce your debt: Where possible, try to reduce outstanding debt, especially high-interest ones. This not only improves your credit score but also reduces your financial burden.

💡 You might like this guide: How to Improve Your Credit Score in 10 Simple Steps.

Seeking alternative financing options

1. Hire Purchase (HP): HP allows you to pay an initial deposit, followed by monthly payments. Once the last payment is made, the car is yours. This method doesn’t always require a guarantor.

2. Personal Contract Purchase (PCP): With PCP, you can have lower monthly payments compared to HP, and at the end of the term, you can either pay a balloon payment to own the car, return it or trade it in for a new one.

3. Personal loan: If you have a reasonable credit score, consider taking out a personal loan from a bank or other financial institution to buy the car. This way, the car isn’t used as collateral, and there’s no need for a guarantor.

4. Pay with savings: If feasible, consider using your savings to buy the car outright, thus eliminating the need for finance and a guarantor.

Consider a joint application

If you have a partner or family member with a better credit rating, you can consider a joint application for the car finance. This isn’t the same as having a guarantor. Both parties are equally responsible for the debt, and both of your credit ratings will be affected by the loan.

Explore specialist lenders

Some lenders specialise in providing car finance to those with poor credit or without a guarantor. They might have higher interest rates, but they are an option for those struggling to find traditional car finance.

Reevaluate the car you’re aiming for

If you can’t find a guarantor and other financing options are looking costly, it might be worth reassessing the car you wish to buy. Opting for a cheaper model or a used car can reduce the amount you need to borrow, increasing your chances of getting approved for a loan without a guarantor.

Finding car finance without a guarantor might be a bit challenging, but it’s not impossible. By improving your credit score, exploring alternative financing options, and reevaluating your car choice, you can be on the road without the need for a co-signer. Always ensure to do thorough research and compare different deals to find the best fit for your circumstances.

🚗 More information: What factors should I consider when choosing a guarantor for car finance?

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