Guarantor Car Finance

  • Alternative to PCP & HP
  • Own the car you drive
  • Credit problems a speciality
  • Tenants & Homeowners
  • Borrow up to £20,000
  • Multiple Loan Options
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Guarantor Car Loans

Many people suffer from credit problems. One of the popular car loan options you may want to consider is car finance with a guarantor. This simply means that you provide someone who’ll guarantee your loan repayments if you have a problem.

Most cars (new and used) are purchased on credit simply because of the large outlay involved. And by default, most people seem to buy their cars using specialist car finance e.g. HP or PCP. But you do not have to do this.

There is a good case for sorting out your finance separately from the car purchase deal.

Yes, this may take a bit more effort overall but it could save you a lot of money in the long run. And the same argument is valid for those with a good credit history who could use a standard personal loan.

Why Guarantor Car Finance?

  • You want to avoid expensive dealer finance
  • You want to own the car you drive
  • You want to get a better car deal overall
  • You want to stay in control

About Guarantor Loans

Car Finance with Guarantor

You will only need to get car finance using a guarantor if you have a credit problem. While there are other ways to get car finance in this situation the fact is that having a guarantor will:

  • significantly improve your chances of getting car finance or a car loan
  • allow you to get credit at a lower APR% than if you had no guarantor

So, what is a guarantor? As part of your finance agreement you provide someone who will support you.

They will be expected to step in and make your monthly loan repayments if you cannot for some reason. This is a significant responsibility that shouldn’t be taken lightly. You car finance guarantor is likely to be a member of your family or a close friend – someone who knows you well and trusts you.

How does a guarantor for a car loan work?

If you are negotiating with a car dealer about your next vehicle and also need credit (as most people do) then how do you know if you are getting the best overall deal? How do you know if the price reduction you’ve got on the car isn’t being recovered through the price of the credit you’re also negotiating?

Market information suggests that car dealers make far more profit from the finance they give you than from the car they sell you!

We think the best arrangement is to sort out your car loan via a lender or a car loan broker before you go and negotiate on the price of the car.

Effectively turning up at the car dealer as a cash buyer puts you in a stronger negotiating position and protects your bank account! It will take a bit more effort, but we think it is worth it.

Car Loan with a Guarantor

Apply through us and using our panel of guarantor lenders we’ll find you typically 3-4 guarantor loan options. Once you’ve completed the application and been approved you’ll receive your loan. This should only take a couple of days assuming that you can provide an acceptable guarantor.

In parallel, you can be identifying the car you want and discussing a deal with the seller as a cash buyer. And this also means you can buy privately and not just be tied to dealerships should you be wanting to buy a secondhand car rather than a new one.



Want to keep things simple?

There’s no doubt that organising a guarantor loan with which to buy your next car will take more time overall. If time is simply something that you don’t have or you don’t believe you can find a guarantor then, of course, then use a car finance broker before you use dealer finance. Many of the advantages we’ve described will still apply.

Our associate, Car Finance 247, has access to a broad panel of lenders that offer hundreds of car finance plans – one or more to suit virtually every eventuality. They’ll be able to explain car leases, PCP and HP deals.

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Guarantor Loans Guide

If you’re uncertain which type of credit might suit you or you have a money problem then one of guides may help you. We summarise each type of loan and their pros and cons, and address issues regarding debt and credit ratings.


  • No Upfront Fees
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  • Independent & Impartial
  • Trusted Partners


For over a decade Solution Loans has helped people all over the UK find solutions to their personal finance problems.

OUR REPUTATION Guarantor Loans


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Our reputation is great. In fact we have scored 4.6 out of 5 based on 198 ratings & 31 user reviews for our guarantor loans service.


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Written/Reviewed by: Amanda Gillam

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