Can I Get Car Finance If I Don't Yet Have My Licence?
You’re just about to get your driving licence - congrats! Ahh, the thrill and excitement of driving your first car… You’re picturing yourself behind the wheel of your crisp, fresh leather-scented dream car. We get you, the perspective of freedom is sometimes too enticing to contain. But with buying a car comes all sorts of questions and responsibilities that can become problems if they’re rushed into. This applies to buying your first car on finance if you don’t yet have a license. Is it possible? Let’s explore! 😎
Can You Get Car Finance Without a Driving Licence?
Yeah, we know, getting your driving licence can be a real challenge, at best. Maybe you’ve failed a few times in the past, or you just simply want to prepare for the future. There are actually so many reasons why you might want to buy a car on finance without having a full valid licence yet. So do you need a driving licence to get car finance?
Let’s cut to the chase. Applying for car finance without a valid licence can be a very difficult feat. Very few lenders will even accept your application if you don’t have a licence. The car finance providers that do take applications without licences will charge you astronomical interest rates and other fees (all included in the car loan’s Annual Percentage Rate.)
If you succeed in applying for car finance without a valid licence, not only will you be getting a very expensive loan, but you’ll also find that there will be various limits on what kind of car you can get and other parameters in your car finance contract.
Can You Get a Finance Car With a Provisional Licence?
In the United Kingdom, you have to be older than 18 if you want to sign a car finance agreement. But if you’re older, can you get a finance car with a provisional licence? Well, if you have a good credit score and a provisional licence, you might be able to show that you’re not a risk to your car finance provider.
How to Prepare for Your Car Finance Application
So, you’ve wondered, “can I get car finance with a provisional licence?” - now, you’re probably looking for tips on applying for car finance without licence. Well, unfortunately, the best tip is to wait until you do have a licence. Otherwise, you’ll just be wasting so much money on extremely high interest rates, and you might not even be able to get the car you want because of restrictions related to your licence status. In the meantime, you could start preparing a flawless application so that you can get your car the minute you get your licence. Let’s go over a few of the documents you’ll need.
Your Personal Information
The basic details you need to provide will be your full name, date of birth, residential status, marital status, and address history for the last three years. You can use your utility bills for this, such as electricity, gas, phone bills, etc. Make sure that it’s your account and your name on the bill that you’ll be using for your application. Any documents you use to prove your address should be less than three months old, too.
Your Employment History
Next, you need to provide your employment history, which includes the names and addresses of your employers for the past three years. If you’ve changed jobs or if you have some gaps where you weren’t employed, you can include information beyond the last three years. Make sure that the addresses are complete and correct, along with postcodes.
Also, indicate your job title and your salary for all the companies you’ve worked for. If you’re a business owner or self-employed, prepare documents that will serve as your proof of income. You might need a form SA302 from HMRC, which will show how much you have earned. You can also request a bank statement for the past six months. In some cases, this will be enough. You’ll need to show the lender that you have enough income to repay your car finance repayments every month.
Proving your Identity
Carmoola and most car finance companies prefer it when applicants use their driver’s licence as proof of identity. Some lenders automatically reject an application for car finance if the applicant doesn’t have a licence. For other car finance companies, you may use your passport or other government-issued ID for this if you can’t provide a copy or photo of your driver’s licence. You might also need to submit additional identification documents.
All copies of the documents you submitted for your car finance application will be assessed by the lender. If the car finance company approves your application, make sure that you read the agreement thoroughly before signing it.
If there are any problems with your application, the lender will inform you. They may request additional documents and information from you. The lender may also reject your application. If you want to avoid this, it’s always best to thoroughly check your application before you submit it.
Car finance companies assess and evaluate each application thoroughly. When they come to a decision on whether they’ll approve or reject an application, it’s final. So, when you apply for car financing, make it a point to check and recheck your documents. All pieces of information you provide the lender should be backed up with adequate documentation.
Here at Carmoola, we have all the resources you need to smash your car finance application. We can help you prepare even before you get your licence. All you have to do is browse through our blog and use our car finance calculator to prepare accordingly! 😊