How to Finance a Car if You’re a Student

Why This Guide Matters

Let’s face it: being a student means you’re always skint, always late, and always wishing your legs were just a tad longer to make that 2-mile hike to campus slightly less soul-destroying. Public transport? Ha! About as reliable as a weather forecast in Blackpool. Now, if you’re eyeing up a car, you’re probably wondering if the world of car finance is open to cash-strapped, credit-invisible students, or if you’ll be stuck cycling through puddles until graduation. This guide cuts through the confusion and tells you how to actually get a set of wheels (without resorting to bank robbery).

The Basics Explained

First, let’s get the boring stuff out of the way. Car finance is basically a set of ways to buy a car without paying the entire price upfront. The main types you’ll hear about:

• Personal Contract Purchase (PCP): You pay a deposit, then monthly payments. At the end, you can buy the car for a final payment or hand it back. Simple? Sort of.
• Hire Purchase (HP): You pay a deposit and monthly payments. Once you’ve paid it all off, the car’s yours. No faffing about at the end.
• Personal Loan: Borrow from a bank, buy the car outright, then repay the loan over time. More freedom, sometimes more risk.

All sound a bit grown-up? That’s because these deals are designed for people with a credit history and a steady income—two things most students have less of than a vending machine has fresh sandwiches.

How It Affects You

Here’s the rub: as a student, you’re basically a unicorn to most finance companies. No proper job, no credit score, and probably living off instant noodles. So, if you’re dreaming of waltzing into a dealership and driving out in something with heated seats, reality might slap you in the face.
• Credit Check: Lenders want proof you’re good for the money. If your credit history is emptier than a Monday morning lecture, they’ll be wary.
• Income: No full-time job? That’s a problem. Most finance companies want to see regular income, not just the odd bar shift or loan from Nana.
• Guarantors: Some lenders might offer you a deal if you can rope in a parent or older sibling to guarantee your payments. But if you miss a payment, guess who’s on the hook?

In short: you’ll have to jump through more hoops than a circus poodle. But it’s not impossible.

Our Approach

At Kandoo, we treat students like humans, not spreadsheets. Here’s how we tackle the student car finance puzzle:

1. We search more lenders than you’ve had Pot Noodles. That means if there’s a company out there willing to consider your situation, we’ll sniff them out like a bloodhound on Red Bull. 2. We look for flexible criteria. Some lenders are more open-minded—they’ll look at things like part-time jobs, scholarships, or even regular parental support. 3. Guarantor options? We explain them in plain English. If you need one, we’ll walk you and your potential co-signer through what it actually means (no small print shenanigans). 4. Realistic budgeting. We help you figure out what you can actually afford. There’s no point getting a finance deal if you can’t afford fuel, insurance, or the odd kebab. 5. Support all the way. We don’t vanish after you sign. If your circumstances change, we’re here to help you renegotiate, refinance, or even take a break if things get tough.

Frankly, we like a challenge—and helping students get on the road is one of the best.

Before You Decide

Before you sign anything (or even start browsing used hatchbacks on your phone in lectures), consider these:
• Do you really need a car? If you’re living bang in the middle of a city with buses every ten minutes, a car might be more hassle than it’s worth.
• Can you afford the extras? Insurance for students is eye-watering. Add MOT, tax, repairs, and petrol, and suddenly that cheap finance deal isn’t so cheap.
• Is your course schedule flexible? If you’re planning on working part-time to make payments, make sure your studies won’t suffer.
• Family support: Are your folks willing (and able) to act as a guarantor if needed?

Take a hard look at your budget. Use a spreadsheet. Or a napkin. Just be realistic.

What’s Real, What’s Hype

Let’s bust some myths:
• Myth: "No student can ever get car finance."
Reality: Difficult, yes. Impossible, no. You’ll just have to work harder than most.
• Myth: "You need a full-time job."
Reality: Some lenders accept part-time work or regular income from other sources.
• Myth: "Guarantors are a get-out-of-jail-free card."
Reality: If you miss payments, your guarantor pays. Simples.

Don’t believe every glossy dealership poster or online ad. If it sounds too good to be true, it probably is.

Pros & Cons

Here’s the good, the bad, and the ugly:

Pros	Cons
Can spread the cost over time	Higher interest rates for students
Build up a credit history	Need for a guarantor in most cases
Access to better cars than cash allows	Insurance and running costs still high
Some lenders cater for students	Risk of debt if not careful

Bottom line: It can work, but only if you’re sensible—and have a decent backup plan.

Other Options to Consider

Car finance isn’t the only game in town. Before you lock yourself into monthly payments, weigh up these alternatives:
• Bank of Mum and Dad: If your folks can lend you the cash, it’s interest-free and doesn’t involve credit checks. Just avoid Christmas arguments.
• Student Credit Cards: Some offer low limits and can be used for emergencies, but don’t use them for car buying unless you want a financial hangover.
• Car Sharing Clubs: In cities, these let you rent cars by the hour. Perfect for occasional use.
• Public Transport (with a railcard): Not glamorous, but often cheaper and less stressful.
• Save up: Mad idea, I know. But if you can wait a year and save, you might avoid finance altogether.

Flexibility is key. There’s no shame in waiting until you’ve got a steady job before buying your dream wheels.

FAQs

1. Can students get car finance in the UK? Yes, but with difficulty. You’ll likely need a guarantor or some proof of regular income.

2. Will I need a deposit? Most lenders expect a deposit, even if it’s small. The bigger the deposit, the better your chances.

3. What about insurance? Brace yourself. Student insurance is pricey. Shop around, use comparison sites, and consider black box policies.

4. How can I improve my chances? Get a guarantor, build your credit score (pay bills on time), and be realistic about your budget.

5. Is it worth it? Depends. If you genuinely need a car and can afford it, go for it. If not, wait until you’re earning more.

6. Will car finance affect my credit score? Yes, in a good way if you make payments on time. Miss payments, and your score will tank faster than a student pint on a Friday night.

7. Can I get out of a finance deal early? Sometimes, but there may be fees. Check the small print or ask your broker.

Next Steps / Call to Action

If you’re a student itching to swap the night bus for a car of your own, let’s talk. Kandoo can help you explore your options, explain the fine print, and find a deal that won’t leave you living off toast for the next three years. Ready to get moving? Get a quote with us today—because student life’s tough enough without soggy trainers and missed lectures.