Car Finance for Students

What’s your monthly budget?

Rates from 9.9% APR. Representative APR 13.9%. We are a credit broker, not a lender.

Representative example: Borrowing £7,500 over 60 months with a representative APR of 13.9%, flat rate of 7.25% and deposit of £0.00, the amount payable is £170.98 per month, with a total cost of £2758.68 and a total amount payable of £10,258.80.

Need a lift? Try our student car finance deals

Having a car as a student gives you the freedom to get around on your own terms. The challenge can often be finding an affordable, accessible finance deal to go with it. That’s where our student-friendly car finance options come in.

Can students get cars on finance?

Absolutely. But if you’re a student reading this, there’s a good chance you might consider a car finance deal out of your reach because of perceived blockers like your age, credit history or the affordability of a contract with monthly payments.

Those are all valid concerns, but affordable and accessible student car finance is a growing market. Finance companies are developing tailored products to accommodate student drivers, and our job is to help you find a finance deal that works in terms of both budget and suitability.

What problems might you face getting car finance as a student – and how can we help?

If you’re a student applying for a typical car finance deal, you might find any of the following can get in your way:

You have limited or no credit history.
You have limited or no income.
You have a limited employment history.
You need a guarantor.
The finance companies you’ve applied with don’t accept students – or have limited options for them.

These are all common problems younger drivers run into when financing a car. The good news is we work with lenders who specialise in offering products for people just like you, giving you a better chance of finding the right car on the right deal, at a rate you can afford.

How does student car finance work?

Student-friendly car finance deals work just like any other – we work to make them accessible for you. The three most common financing options for students are:

Personal contract purchase (PCP)

PCP is the most popular and flexible form of car finance in the UK. In a typical PCP deal, you pay a deposit upfront followed by fixed, manageable monthly payments for the duration of your agreement. At the end of the deal, you can choose what you want to do with the car. You can take ownership of it by making an optional final “balloon payment” or return the car without paying anything more.

Hire purchase (HP)

Hire purchase is very similar to PCP in how the deal is structured with an initial payment followed by fixed monthlies. The main difference with a hire purchase deal is there’s no option to return the car. You take ownership of it once the final payment is made. There’s no big balloon payment like with PCP. Instead, the full cost of the deal is spread out evenly across your monthly payments.

Personal loan

With a personal loan, you simply borrow the cash you need to buy your chosen vehicle immediately. That gives you immediate ownership of the vehicle, then you simply pay off the loan across an agreed time period.

If you’re unsure which financing option might work best for you, why not speak to a member of the Hippo team? We’ll be happy to help you figure things out.

How to apply

Applying for student car finance with us is simple.

You check your eligibility for finance (without affecting your credit score) by using our free soft credit check, which will let you know if you’re pre-approved for finance with any of our lenders. It takes two minutes to apply and won’t impact your credit rating to check* – nor is there any obligation to continue afterwards. We’ll usually be able to give you a decision within around 30 minutes.**

Once you’re pre-approved, we’ll be in touch to discuss your options.

Why get your student car finance with Hippo?

We specialise in helping people with bad or limited credit find finance deals that make sense for them. The same goes for those looking for affordable zero-deposit options too. As a student, there’s a good chance you’re looking for help with financing a car with both limited credit and as little to pay upfront as possible. We’re in a great position to help you with both.

You can find out today if you’re eligible for finance with our free, fast, no-impact soft credit check. It’s easy to apply, and you’ll often get a decision in minutes.**

New to car finance? Don’t worry – our end-to-end service and dedicated account support make finding a good car on a good deal easy.

Reliability is so important for student drivers. Our Used Car Promise ensures you get a quality second-hand car from us no matter what option you go for, with a 130-point quality inspection, 3-month warranty and minimum 6-month MOT included as standard with every vehicle.

Student car finance FAQs

Can I get a car on finance as a student?

Yes. Student car finance is a growing market, with finance companies increasingly developing loan products designed to work for student applicants who might otherwise struggle to get approved for a car finance deal. As bad credit and zero deposit specialists, we work with lenders that offer these sorts of options to give you the best chance of finding a car deal that works for you.

How can I improve my chances of getting a car finance deal as a student?

There are several things you can do to improve your chances of approval as a student:

If you have a limited or poor credit history but you’re willing to wait a little, making moves to build your credit score – like registering on the electoral roll and showing evidence of paying off direct debits on time – can help with what is one of the main stumbling blocks to acceptance for many student applicants.
Adding a guarantor – a close family member or friend who’s willing to cover any payments in the event you can no longer make them – to your agreement can provide reassurance to lenders.
Generate a steady income from a part-time job.
Save up to pay a higher amount upfront. This reduces the amount you’ll borrow and the risk to lenders.
Go for a cheaper deal to reduce the amount you’ll borrow.
Work with a broker (like us) that specialises in helping students and other limited/bad credit applicants find car finance.

How old do you need to be to get car finance?

You need to be 18 to get a finance deal in the UK.

Find out if you’re eligible for student car finance with us today

An affordable, manageable and accessible student car finance deal could be around the corner. All you need to do to get started is check your eligibility using our free soft credit check.

If you’d like any more information or would rather speak to someone about your options, give us a call.