First-time buyers
Your first car on finance
No credit history is not the same as bad credit — but to a lender it can look similarly uncertain. Here is how to approach a first application.
- No credit history considered
- Guarantor options
- Soft search first
Finance Calculator
What could Hire Purchase cost?
Your illustration
- Amount of credit
- £14,000
- Illustrative APR
- 9.9%
- Total charge for credit
- £2,876.36
- Total amount payable
- £17,876.36
- 48 monthly payments of
- £351.57
Includes a £1 option to purchase fee. An illustration only — not a quote and not an offer of credit. Your rate depends on your circumstances and the lender. Finance is subject to status and income. Q-Finance is a credit broker, not a lender.
Q-Finance is a credit broker, not a lender. Our rates start from 8.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £8,000 over 60 months with a representative APR of 18.8%, the amount payable would be £200.34 a month, with a total cost of credit of £4,020.11 and a total amount payable of £12,020.11.
Ready to apply?
Start with a soft search
See what is available before anything is recorded on your file.
Why a thin file is hard to score
Lenders predict future behaviour from past behaviour. With no borrowing history there is nothing to predict from, so they fall back on stability, affordability and any deposit you can put down.
This is why a first application can be declined even with a good income and no black marks. It is not a judgement on you; there is simply not enough data.
What helps
- Registering on the electoral roll — quick, free, and one of the most useful things you can do.
- A deposit, which reduces the lender's exposure and shows saving discipline.
- A modest first vehicle rather than the maximum you can stretch to.
- A few months of any well-managed credit — a phone contract on your own name counts.
- A guarantor, where a lender offers it and someone is genuinely willing.
Budget for the whole thing
For a first car, insurance is often the bigger number. Get a quote on the specific vehicle before you commit to it — group and value move the premium enormously for younger drivers.
- Insurance, quoted on the actual vehicle and postcode.
- Vehicle Excise Duty.
- Fuel or charging, based on your real mileage.
- Servicing, MOT and tyres.
Common questions
Related reading
-
Low deposit
Low Deposit Car Finance
Car finance with a small deposit or none at all. How deposit size affects your rate and monthly payment, and when putting more down is worth it.
-
Used car finance
Used Car Finance
Finance a used car from a dealership or privately. Hire purchase, PCP and personal loans from a panel of lenders, with a soft search that won't affect your credit score.
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Guide
What credit score do I need for car finance?
Why there is no single pass mark, what lenders actually look at, and how a soft search lets you check your position without leaving a mark.
Ready to apply?
Start with a soft search
See what is available before anything is recorded on your file.