Guarantor Car Finance

  • No Deposit
  • We help find you the perfect car
  • PCP and HP from 8.9% APR
  • Free car history and dealer quality check
Get a Quote Does not affect credit score
Man and women making a deal at dealer |
Nikki Image

At CarMoney, we believe that your circumstances shouldn’t stop you getting car finance. Our guarantor car finance guide is here to help. And it doesn’t even have to be for a car. We’ll find you finance for a van, motorbike or caravan.

If you have a bad credit rating, or no credit history at all, you may think you’ve got no chance of obtaining car finance. But that isn’t the case with CarMoney. Our car finance ninjas will find a range of finance options, so you can see exactly what is available and which option is right for you.

We know that when you are looking for a car, you want finance to be dealt with as quickly as possible. That’s why our car finance ninjas will slice through the market, so you can see the lenders that offer you the best deals.

Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 17.9%, monthly payment would be £171.83, with a total cost of credit of £2,247.83 and a total amount payable of £9,247.84. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions this can either be a % of the amount borrowed or a flat fee. This does not influence the interest rate you’re offered in any way. CarMoney is a broker not a lender



Speed Icon |

Get Rapid Responses

Scales icon |

100% Unbiased Car Finance Deals

Shield Icon |

Keep Your Credit Score Unaffected


  • Higher Chance of Approval: If you choose a guarantor for car finance, the chances the loan will be approved increases. If the primary borrower has a low credit score or no credit history, lenders might be hesitant to approve the loan. However, having a guarantor with a strong credit history and stable financial standing can reduce the lender’s risk, making them more inclined to approve the loan application.
  • Better Interest Rates: The guarantor’s stronger credit score can also make it easier to find loans with lower interest rates. Guarantor car finance can significantly reduce monthly payments and the overall cost of the loan for the borrower.
  • Opportunity to Build Credit: For borrowers who are new to credit or aiming to rebuild their credit, having a guarantor can serve as an opportunity to establish a positive credit history. Keeping up with payments on the guarantor car loan can reflect positively on both the borrower’s and the guarantor’s credit reports.
  • Access to a Higher Loan Amount: With a guarantor, the primary borrower may be eligible for a higher loan amount than they would have qualified for on their own. This can be particularly beneficial if you need to buy a larger, or more expensive, vehicle.
  • Assistance for Young Drivers: If you have yet to establish a credit history, it can be challenging to secure car finance. With a guarantor in place (usually a parent or guardian) can help obtain the car loan and drive towards financial independence.
  • More Options for the Borrower: Having a guarantor will likely mean the borrower will have more lenders offering them better rates, giving more choice to the borrower.


  • Financial Responsibility: The main potential downside of guarantor car finance is that the guarantor becomes financially responsible for the loan if the borrower is unable to make payments. If the borrower defaults, the guarantor’s credit score could be negatively impacted, and they would be legally obligated to repay the remaining loan balance. Of course, this isn’t an issue if the borrower continues to make payments.
  • Impact on Relationships: Money is one of the main causes of arguments. And acting as a guarantor can strain relationships, even within families.
  • Impact on Guarantor’s Credit: If the borrower misses payments or defaults on the loan, the guarantor’s credit score can suffer. Late payments or defaults will be reported on both the borrower’s and the guarantor’s credit reports.
  • Limited Financial Flexibility: Acting as a guarantor can limit the financial flexibility of the co-signer. Lenders may consider the guarantor’s existing financial obligations and credit exposure, potentially affecting their ability to obtain additional credit for their own needs.
  • Potential Legal Consequences: In cases of loan default, the lender may pursue legal action against both the borrower and the guarantor to recover the outstanding debt. This could result in legal fees, court proceedings, and additional financial stress.
  • Dependency on Guarantor: For the primary borrower, relying on a guarantor might prevent them from developing a sense of financial responsibility. However, the opposite can be true – some borrowers will be motivated to continue paying off the loan simply so the guarantor doesn’t have to.
Couple at Dealer |

Choosing guarantor car finance may increase your options if you have a bad credit rating.

If you have a history of missed payments, lenders may ask for a guarantor – this is someone who co-signs the loan agreement with the primary borrower, essentially agreeing to take on the financial responsibility if the borrower defaults on the payments.

A guarantor car loan can have benefits, but it may not be right for you and your individual circumstances. Nikki the Ninja will take you through the pros and cons of choosing car finance with a guarantor.

Want to find out more about guarantor car finance? Contact Car Money today.

Approved |

Managed properly, guarantor car finance can be a great help!

As long as it is managed properly, and both the borrower and guarantor understand their responsibilities, guarantor car finance can be a great help. It can be a lifeline for individuals who would otherwise struggle to secure a loan due to poor credit or lack of credit history. It can provide access to better interest rates and a higher chance of approval.

If you are considering a guarantor car loan, contact CarMoney today. Our ninjas will do what we can to slash interest rates and find the best deal for the borrower and guarantor.

See how much you could borrow.

Frequently Asked Questions

Do you need a guarantor for car finance?

It is only sometimes necessary to have a guarantor for car finance. You may need to pay a higher interest rate or make a larger deposit if you don’t have one. Exploring different quotes, considering opting for a secured loan, and obtaining pre-approval before beginning your car shopping journey is a good idea.

Can I get car finance if I’m a student?

Students may find it more challenging to secure car finance due to their limited income and credit history. However, some lenders offer specific student car finance options. Having a regular income source or a guarantor can also improve your eligibility.

Can I use a guarantor to get motorbike finance with bad credit?

Yes, some lenders may allow you to use a cosigner with good credit to improve your chances of approval for a motorbike loan. A cosigner agrees to be legally responsible for the loan if you default. This can make you a more attractive borrower to lenders, as it reduces their risk.

Can I include a co-signer or guarantor to improve my chances of approval?

Yes, having a co-signer or guarantor with a good credit history can improve your chances of getting approved for car finance and lead to more favourable terms. A co-signer or guarantor is someone who agrees to be responsible for the loan if you default. This can make lenders more likely to approve you for a loan, even if you have a poor credit history. Additionally, having a co-signer or guarantor with a good credit history can help you get a lower interest rate and better terms on your loan.

How it works
Nikki the ninja |

Guarantor Expertise

We work with guarantors to ensure the application process is easy for everyone involved.

Nikki with laptop |

Bad Credit Solutions

We specialise in car loans for people with bad credit. We use the creditworthiness of their guarantors to help them get approved for a loan. This gives them a second chance to own a car.

Speedy Nikki |

Quick Approvals

We simplify the guarantor car finance approval process and give you a fast decision so you can get on the road in your new car quickly.

Join thousands of happy customers

Our customers love our CarMoney Ninjas

Ninja Placeholder
CarMoney Ninja Sean

“Great service, Sean Davidson was great and was always trying to help and give me the easiest experience possible. Thank you very much Sean.”

Brad Badge |
Ninja Placeholder
CarMoney Ninja Alan

“Alan, who I spoke with on the phone, was amazing! He sorted everything out for me, it was so easy and was able to get my car the very next day. Fantastic!”

Trustpilot Badge |
Ninja Placeholder
CarMoney Ninja Sophie

“Sophie who sorted my finance out for car was amazingly nothing was too much trouble for her always kept me up to date. Five stars Sophie. Thanks for everything”

Trustpilot Badge |
Ninja Placeholder
CarMoney Ninja Ellie

“My ninja from start to finish Ellie McGavin I Needed a car it was complete from picking to collecting within 2 days friendly staff great communication brilliant.”

Trustpilot Badge |
Ninja Placeholder
CarMoney Ninja James

“Excellent professional and courteous service nothing too much trouble James was thoroughly committed to helping me source my car”.

Terry Badge |
Ninja Placeholder
CarMoney Ninja Frazer

“Frazer from car money made the experience of getting a car simple and easy. Would definitely recommend to family and friends. Thanks again CarMoney!”

Scott Badge |

View our Video Testimonials

CarMoney Ninja William
William Rocks

We Compare the best deals from over 20 lenders

CarMoney LIMITED is authorised and regulated by the Financial Conduct Authority (FCA) for consumer credit activity and our registration number is 674094. Representative 17.9% APR. Over 18’s only. CarMoney IS A BROKER NOT A LENDER.

REGISTERED ADDRESS: Pioneer House, 2 Renshaw PL, Motherwell, ML1 4UF, Scotland.Company Number: SC467274.

All finance is subject to status and income. Written Quotation on request. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions.