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You want to borrow: £1.500
Over a period of: 18 months
Repaying: £113.07 p/m
Total repayable: £2,023.75
Interest rate: 41.16% (fixed)
Representative: 49.9% APR
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  • No up front Broker Fees
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Borrow up to £7,500 with the UK's friendliest Guarantor loans website

Representative Example
Credit £3,250 for 36 months | Interest (fixed at 41.16%): £2,464.57. | Total amount payable of £5,714.67.
Representative 49.9% APR. | 36 repayments of: £158.57.

Car Loans

Guarantor Car Loans as Easy as 1, 2, 3

If You've Got a Buddy...You've Got a Car!

1. Find a Guarantor

2. Complete our Simple Application

3. Get Approved & Buy the car of your dreams

Guarantor Car Loans Made Simple at Buddy Loans

One of the "milestones" and rites of passage in many of our lives is when we pass our drivers license tests.

Driving tests today can be difficult and it is an accomplishment to finally take those "L" plates off a car and for some of us, place those "P" plates on.

New Car

Getting to the stage where we can even take the driving tests can be costly. Paying for lessons, the fees to take the theory and practical tests all add up. It can be a financial commitment to get your driving licence.

Then once you pass your driving tests, there is the dream of having your own car, your own set of wheels to get around.

Having your own car represents freedom, no more waiting for the bus, or the expense of taxis, or being at the mercy of someone else driving you here, there, and everywhere.

Buying a car is a large purchase, next to buying a house, for many it will be the largest purchase they will make in their lives.

New cars can cost £12,000, to £15,000, to... the sky's the limit!

Buying a used car for many is a much better deal.

Cars are considered a depreciating asset. Which means that while a car is an asset, and has value, that value drops over time. A new car worth £10,000 can lose 20% of its value just in the first year, and it loses that value as soon as you drive it off the dealership's lot.

Imagine buying a car and paying £10,000 for it, only to have it be worth £9,000 as soon as you drive it home.

So buying a used car can make better financial sense.

The loss of value or depreciation has already been deducted from the price of the car.

However, even used cars are not cheap.

Not many people when they decide to buy a car have the money to just go out and pay cash for a car. Saving up to buy a car can prove difficult as well. It may take years to save up £5,000 or £7,000 to buy a used car.

That is why many people when they buy a car use some form of financing to pay for the car. This way they have the car to use, and while not having to save a huge lump sum to buy the car, they can afford the monthly payments in order to buy a car.

Happy Couple

Financing Your New Car

When looking to buy a car and borrow the money to finance a car, you have many options, however, not all options will be available or work for everyone.


Get a loan

One way to finance a car is to simply take out a personal loan and then pay cash for the car. It sounds as simple as it is, however, personal loans can be difficult to qualify for. Banks and lenders may want the borrower to have strong credit, and a high credit score.

This is because personal loans have no security or collateral securing the loan. If you have bad credit, you may not qualify for a personal loan.

  • You own the car outright.
  • Some loans can be set-up rather quickly.
  • Personal loans can require a high credit score and good credit.
  • The loan can affect other borrowing, or may reduce your credit score.

PCP Finance

PCP is Personal Contract Purchase. This is a popular form of financing a car, and good for those that like to buy a new car every few years.

The way PCP financing works is that you put a deposit of money down on the car you wish to purchase, and you make your monthly payments for the period of time outlined in the contract.

At the end of the contract period you have a few options:

  • Hand the car back to the dealership and pay nothing.
  • Trade the car in for a new car and begin the process again.
  • Buy the car paying the value of the car at the time, and you keep it.

PCP financing is good if you like changing cars every few years, but there are some restrictions. One is the mileage you can drive while you have the car, this can be capped on an annual basis. Should you go over this mileage, or there is any damage to the car when you return it, you are responsible for these.

In addition, to qualify for many PCP financing schemes, you need good credit and a good credit score.

  • Flexible in that contracts can be 12 months or up to 36 months.
  • You can simply hand the car back at the end of the contract.
  • You have options at the end of the contract.
  • You do not own the car.
  • You cannot make modifications to the car.
  • If you drive over the set mileage or there are damages to the car, you will need to pay these.
  • You may wind up paying more than the value of the car if you choose to buy it at the end of the contract.
  • You need cash or to finance the buy-out amount if you wish to buy the car at the end of the contract.

HP Finance

HP financing or hire purchase, is similar to PCP financing, however, you do not have the various options at the end of the contract.

Again you pay a deposit upfront, and then your monthly payments, however, at the end of the contract you own the car. You may pay an administration or transfer fee as well.

  • Can be a low deposit amount (10%) of the sale price.
  • No mileage restrictions.
  • Flexible terms 12 to 36months, possibly longer.
  • You do not own the car until the end of the contract term.
  • HP can be more expensive for short-term contracts.

Personal Leasing

Personal Leasing is very similar to HP financing, and also PCP financing. You pay your monthly payments, and at the end of the contract period you give the car back to the dealership.

You never own the car and you do not have the options to buy the car or trade it in at the end of the contract like PCP financing.

  • Fixed contract; you know how much you will pay in payments each month.
  • You can hand the car back at the end of the contract.
  • Terms form 12 to 36 months.
  • You never own the car.
  • If you exceed the mileage limits or there is damage to the car you are responsible.
  • You need a deposit of usually three (3) months rent.

Guarantor Car Loans Made Easy

Couple signing loan application

Another way to finance a car, which is similar to getting a personal loan and buying the car outright is using a guarantor loan as a means to finance the car.

This is similar to getting a personal loan as the loan can be for any purpose, however in this instance, you plan to purchase a car with the loan.

The positive aspects of this form of borrowing is that:

  • Poor or no credit is acceptable
  • Fast approval
  • You can purchase any car you wish
  • You just need someone to guarantee the loan
Handing new car keys

As you can see there are many ways to buy and finance a car, but not all of these financing options are for everyone.

Some options require a large deposit, which means saving again.

Some financing options require good credit, or a strong credit score.

In the end it is going to come down to each person's individual needs, and also their credit score and what they can afford.


Buddy Loans is a direct lender rated 5/5 stars by based on 1128 merchant reviews



from 0 to 10

Representative Example


36 months

£158.57 p/m

Total Repayable

Interest Rate
41.16% (fixed)

Representative 49.9% APR.

Terms and Conditions apply. Suitable Guarantor required. All loans are subject to status and affordability checks prior to approval. All applicants must be 18 or over.

Frequently Asked Questions

Most asked Guarantor Loans related questions


I have bad credit from the past, can I still get a Buddy Loan?


In most instances, applications are approved within 24 hours, and the money in your account.

Using our online application the process is quick and easy.

You may want to speak to the person you wish to use as a guarantor prior to applying for your loan, as this can make the process quicker.


Is my Buddy Loan secured against the car I buy?


No, a Buddy Car Loan is not secured against the car.

You receive your loan and can buy the car of your choice, and there is no lien against the car, or security filed against the car. You will own the car outright.


Is a valuation required on the car I wish to buy?


No, as your Buddy Car Loan is not secured against the car, no valuation is needed on the car.


Can I sell the car I buy using my Buddy Loan at anytime?


Yes, again there is no lien against the car, and the loan is not secured by the car, so you own it outright, and can sell the car whenever you wish.

The proceeds you make off the sale of the car can be used to either pay off your Buddy Loan if there is a balance still owed, or used to purchase another car.


If I miss a payment on my loan, will the car be repossessed?


No, if you miss a payment on your Buddy Loan, your guarantor will be expected to make the payment. The car will not be repossessed. That is the strength of a guarantor loan, the person guaranteeing the loan.


I have had a car repossessed in the past when I was younger. Can I still get a Buddy Car Loan?


Yes, having bad credit is not a problem in being approved for a Buddy Loan. Buddy Car Loans are based on affordability and having a guarantor.


Who can be my guarantor?


A family member, a friend, a work colleague, someone you know who feels you will repay the loan. If you have a good buddy, you have a car loan.


What cars can I buy?


You can purchase any car you wish with your Buddy Car Loan.

You can be a cash buyer for a car once your Buddy Loan has been approved. As a cash buyer, who has already secured financing, you are in a stronger position to negotiate. You can negotiate with sellers and dealers as you already have the financing in place, and cash in hand to buy your new car.


Can I pay my Buddy Car Loan off early?


Yes, there are no penalties or fees to pay off your loan early. Just phone us to get the current balance and amount to pay off the loan.


How much can I borrow?


How much you can borrow for a Buddy Car Loan will be based on how much you can afford to repay each month, with the maximum loan being £7,500.

Buddy Loans are based on affordability and having a guarantor.

The term of the loan can be extended to 60 months (5) years, to reduce the monthly payments to make the loan more affordable.


I have found the perfect car and want to make an offer, how soon will I be approved for my loan?


The majority of Buddy Loans are and can be approved within 24 hours, and you can have the money in your account that day.

The sooner you apply online, and provide us all the information we need, the sooner your loan can be approved and the money in your account.

Costs associated with owning a car need to be considered in addition to the loan payments.

Things such as:

  • Insurance
  • MOT
  • Road Tax/Tax Disc
  • Maintenance
  • Repairs

All need to be reviewed when considering a car and if it is affordable or not.


What if I cannot get a guarantor, can I still get a Buddy Car Loan?


Unfortunately no, we at Buddy Loans only do guarantor loans, so you would need a guarantor.


I have had bad credit in the past, how can I be sure I'll qualify for a Buddy Car Loan?


Buddy Loans are based on affordability and having a guarantor. If you pass our affordability test, and can afford the monthly payment, and you have a guarantor, you will qualify for a Buddy Loan.


The car I wish to buy costs £8,000, and you only lend up to £7,500, what can I do?


At Buddy Loans are maximum loan is £7,500. If you wish to purchase a vehicle that exceeds this amount, and you are approved for a Buddy Loan, you would need to either pay the £500 difference, or negotiate with the seller for them to reduce the sales price to the loan amount.


Do I need to know the car I want to before I apply for a Buddy Car Loan?


No, in fact it may best if you apply for a loan, get approved, and then you know how much you have to work with to buy your car. By knowing you are already approved for the loan, you know exactly how much you have to spend on your car. No guessing or seeing the car of your dreams, only to not qualify for the financing.

Once approved for your Buddy Car Loan, you are like a cash buyer.


Are there any fees to apply for a Buddy Loan?


There are no fees or costs to apply for a Buddy Car Loan, use our easy online application today.

If you have a question that is not answered here, please feel free to phone us at 0800 802 1061 or use our enquiry form to contact us.

Minimum period for repayment: 12 months | Maximum period for repayment: 60 months | Minimum APR 49.8% | Maximum APR 49.9%
Representative example: Amount of credit £3,250 for 36 months. Interest (fixed at 41.16%): £2,464.57. Total amount payable of £5,714.67. Representative 49.9% APR (Variable). 36 repayments of: £158.57.