Do I need a driving licence to get car finance?
Most lenders will ask to see a full UK driving licence when you apply for car finance, but not having one isn't always the end of the road. Some lenders accept a provisional licence or a licence from another country, and there are a few other routes that could help too.
Whether you're still learning, have just moved to the UK or haven't started driving yet, we'll talk you through your options so you know what to expect before you apply.
5 min read
Why do lenders ask for a driving licence?
Lenders ask for your licence because it proves who you are and shows you're legally allowed to drive the car you're paying for. They might also check your details with the DVLA to make sure everything matches up. If you don't have a full licence, you can usually prove your identity in another way, such as with a passport. Lenders may still want to know who'll be driving the car, though.
Can I get car finance with a provisional licence?
Yes, some lenders offer car finance to people with a provisional licence, although you'll usually have fewer deals to choose from. Lenders will want to be sure you can afford the payments and that you have a genuine reason for needing the car.
It's completely understandable to want your own car while you're learning. You can get used to it, practice between lessons and hit the road as soon as you pass. Just remember that it's illegal to drive on your own with a provisional licence, even if the car is yours. Whenever you're behind the wheel, the person supervising you must:
- be at least 21
- have held a full licence for at least 3 years
- be qualified and insured to drive the car you're in
You'll also need learner driver car insurance before you can practise in your own car.
What types of car finance can I get without a full licence?
If a lender accepts you without a full licence, you'll usually have the same main options as everyone else: hire purchase, personal contract purchase or personal contract hire.
Hire purchase (HP): You pay a deposit, then fixed monthly payments. Once you've made the last payment and paid any 'option to purchase' fee, the car is all yours.
Personal contract purchase (PCP): Your monthly payments are usually lower than HP. When your deal ends, you can hand the car back, make a final 'balloon payment' to keep it, or use any value left as a deposit on your next car.
Personal loan: You borrow the money and buy the car outright, so it's yours from day one. Because the loan isn't tied to the car, some lenders don't ask for a driving licence, but you'll still need to pass their checks.
Get car finance up to £50,000
- Check your eligibility without impacting your credit score
- No deposit needed
- Rates from 10.4%* APR
Representative Example: Borrowing £9,290.00 over 5 years with a representative APR of 22.6% an annual interest rate of 20.5% (fixed) and a deposit of £0.00, the amount payable would be £248.98 per month, with a total cost of credit of £5,648.80 and a total amount payable of £14,938.80. Lender fees may apply, this is an example only.
Intelligent Lending Ltd (credit broker) partnered with Ocean Car Finance (credit broker) who works with a wide panel of lenders.
Can I get car finance with no licence at all?
It's harder, but it may still be possible. Most car finance is set up for the person who'll be driving the car, so lenders may be wary if you don't have any licence yet. A personal loan or a joint application could be worth looking into. If someone else will be the main driver, though, the finance should be in their name, not yours.
Can I get car finance with a foreign driving licence?
Yes, some lenders accept licences from other countries, especially from the EU, but others will only accept a UK licence. Lenders may also want to see that you've lived in the UK for a while, so it can help to have some UK address history and a UK bank account.
It's also worth checking how long you can legally drive on your licence . If you've moved to the UK, you can usually drive on a full licence from another country for at least 12 months. After that, you may need to swap it for a UK licence, depending on where it's from.
Could a guarantor help me get car finance?
Yes, a guarantor could help, especially if you don't have a full licence or much of a credit history. A guarantor is usually a family member or close friend who agrees to make your payments if you can't. This gives the lender extra peace of mind.
It's a big thing to ask of someone, though. The lender will check their credit history, and their credit score could be affected if they need to step in. Money worries can put a strain on any relationship, so it's worth talking it through honestly first. Not all lenders offer guarantor car finance, so your options may be more limited.
Can I apply for joint car finance?
Yes, some lenders let you apply jointly with someone else, and applying with a full UK licence holder could improve your chances if you don't have one yourself.
Both applicants will be responsible for the full amount and must pass the lender's checks. Some lenders also ask that you both live at the same address. If payments are missed, it'll affect both of your credit files, so make sure you're both comfortable with the commitment.
Can someone else get car finance for me?
No, not if you'll be the one mainly driving the car. Taking out finance for someone else to drive is called 'fronting', and it's a type of fraud. If you'll be the main driver, the finance needs to be in your name. Someone can still help you out in other ways, though, like putting money towards your deposit.
Can young drivers get car finance?
Yes, but you'll need to be at least 18, and some lenders only lend to people aged 21 or over. You can pass your test at 17, but you can't take out any kind of credit until your 18th birthday. When you're young, you probably won't have much of a credit history yet, so lenders have less to go on. That can make it harder to get accepted, especially if you don't have a regular income.
It's a good idea to work out your full budget before you apply. On top of your monthly payments, you'll need to cover insurance, road tax, MOTs, servicing, repairs and fuel. Insurance is usually more expensive for new drivers, so it's worth getting a few quotes early on.
How can I improve my chances of getting car finance?
Building a good credit history is one of the best things you can do to improve your chances, whether you have a full licence or not. Even if you've just turned 18, there are some simple steps you can take:
- Register to vote at your current address and update it whenever you move.
- Pay your bills on time. Setting up Direct Debits can make this easier.
- Check your credit report for mistakes or anything you don't recognise. You can check yours for free with CredAbility.
- Try not to make lots of credit applications close together, as each one leaves a mark on your credit file.
- Keep your credit card balances low compared with your credit limits.
- Check your eligibility before you apply. This uses a soft search, so it won't affect your credit score.
Should I wait until I've passed my test?
It depends on why you need the car. If you need one now to practice or get to work, finance with a provisional licence could work for you. Waiting until you've passed usually means more lenders to choose from and cheaper insurance, though. That time also gives you a chance to save a bigger deposit and build up your credit history. Whichever you choose, make sure the payments fit comfortably in your budget.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
