A lot of students assume that they're unable to secure car finance. While it might be harder for students to be accepted, it is possible.
We actually have a number of lenders that will consider accepting students for car finance; however the decision is likely to depend on a number of other circumstances.
There are two main reasons why students worry they won't be accepted for car finance. The first is because a lot of students work on a part time basis, meaning their level of income is not as high as somebody that works full time and often the job may be less secure. The second reason is due to the fact many students will be fairly new to the world of credit due to their age. By not having any credit history, students will almost be in the same position as someone with Bad credit because the lender doesn't know how high a risk that individual may be.
If you're a student applying for finance there are a few things that will aid your application. If you earn a consistent wage this will help but, more importantly the more you earn the easier it will be to be accepted. Usually our lenders will look for an income of about £800 per month (find our more here).
If you earn less than this, but are confident of being able to make the payments, you could also consider using a Guarantor to help you gain an acceptance.
By having a credit history, you'll be able to show the lender that you have a history of repaying money and are more likely to be accepted for car finance as long as the history is positive. If you've had financial difficulties in the past which have been recorded on your credit file, this could also work the opposite way. The lender is always trying to understand the risk associated in lending you the money.
Finally, if you have a deposit that you can pay towards the vehicle, this will help to show the lender that you're serious about the finance agreement and willing to make the monthly payments as you have already put a sum of money into the vehicle, rather than borrowing the full amount.
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