The short answer is yes, you absolutely can apply for car finance with a provisional licence. However, there are a few things to keep in mind. Lenders will usually allow you to borrow up to £25,000, but this varies according to the lender you choose and the type of car you’re looking to buy.
Since you’re still learning to drive, it’s likely that lenders will impose stricter borrowing limits than if you had a full licence. They may see a provisional licence as a higher risk, which often means less flexibility in how much you can borrow or stricter terms on your finance.
It’s also important to remember that while you’re legally allowed to drive the financed vehicle – as long as you have the right supervision – having a provisional licence doesn’t guarantee you’ll pass your driving test.
One more thing to think about is your credit score. Just like with any loan, applying for car finance will impact your credit score, so it’s worth making sure your credit is in good shape before applying.
When you apply for car finance as a provisional licence holder, lenders consider a number of factors to decide if they can approve your loan. These include:
Age: Younger drivers, especially those with a provisional licence, may face more scrutiny as lenders tend to see younger applicants as higher risk.
Employment status: Having a stable job with a steady income can work in your favour. It shows lenders you’re able to keep up with monthly payments.
Credit history: Your credit score is probably the biggest factor. The better your credit score, the more likely you are to get approved for finance at a good rate.
Vehicle type: The type of car you want to finance is also important. Some lenders might be more cautious with higher-value or luxury vehicles, especially for provisional drivers.
Driving experience: While lenders may not focus too heavily on your driving record, the fact that you’re still learning might mean they’re likely to be a bit stricter with their terms.
If you’re ticking the right boxes, your chances of securing car finance, even with a provisional licence, improve. Just make sure to have your finances in check!
Even if you’ve only got a provisional licence, there are still some great options available to you for financing a car! Here, we’ll explore them in further detail.
First up is the personal loan, also called an unsecured loan
With this option, you borrow the money to buy your car outright, meaning you’re the owner from day one. The best part? You’ve got complete control of your vehicle – you can drive it, sell it, or even modify it as you like!
Next is personal contract purchase (PCP)
This keeps your monthly payments lower by covering only the car’s depreciation while you’re driving it. You get flexible options at the end of your contract – you can buy the car by paying a final balloon payment, hand it back, or part-exchange it for something new.
It’s ideal if you like flexibility, but keep in mind that you don’t own the car unless you make that final payment.
Finally, there's hire purchase (HP)
A simple and reliable choice. With HP, you pay off the full cost of the car in monthly instalments, and once everything’s paid (including a final small option-to-purchase fee), the car is all yours. There’s no balloon payment at the end like with PCP, so it’s more predictable.
It may come with higher monthly costs, but you’ll fully own the car at the end of the agreement.
Each option comes with its own perks, whether it’s full ownership upfront, flexible end-of-term options, or simple monthly payments. Whatever you choose, there’s a way to drive the car you want, even with a provisional licence.
You’re probably wondering if you need a guarantor to secure car finance with a provisional licence. The good news is that it’s not a strict requirement. Though having a guarantor – someone who agrees to step in and make your payments if you can’t – can improve your chances of approval, you can still apply for finance without one.
Having a guarantor can make lenders more comfortable, which could mean better terms for you, like lower interest rates or a higher borrowing limit. This extra security is especially useful if you’re worried about your credit score or if you're a student looking to buy your very first car.
Don’t worry though, just because you don’t have a guarantor doesn’t mean you won’t be able to get car finance. Plenty of provisional licence holders successfully apply on their own. If you have a stable income and a decent credit profile, you’re in a good position to get approved independently.
Can you make a joint application with a provisional licence?
Though Oodle doesn’t offer joint applications, it’s still worth understanding how they work. If you hold a provisional licence, you can apply for car finance jointly with someone who lives at the same address. The most common co-applicants are partners, spouses, or relatives.
A joint application could boost your chances of approval with the lenders that offer it because both applicants’ financial profiles are taken into account. This means if a co-applicant has a strong credit history or a steady income, it could make the whole process easier. Some lenders see joint applications as less risky, especially when one person has a full licence and good credit.
Though getting car finance with a provisional licence might seem a bit more challenging, it’s absolutely possible. You just need to know what lenders are looking for – things like your age, credit history, and job stability. While there are some extra things to consider, the process isn’t as complicated as you might think.
There are plenty of finance options out there, from hire purchase to personal loans, so you’ve got choices even if you're still learning to drive. As long as you’re clear on what’s required, and are ready for a few extra checks, there’s no reason you can’t get the car you want.
Take the time to understand your options, and you’ll be well on your way to securing car finance that works for you. Ready to take the next step? Explore your options with Oodle car finance today and see how we can help make it happen!
