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I would like to borrow
£60
To pay back over
3.5 years

Zuto is a credit broker, not a lender. Our rates start from 9.4% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £8,000 over 60 months with a representative APR of 19.9% the amount payable would be £204 a month, with a total cost of credit of £4,264 and a total amount payable of £12,264.

Zuto Limited. Registered in England under number 05722976. Registered office: Winterton House, Winterton Way, Macclesfield, Cheshire SK11 0LP. Zuto Limited is acting as a broker and not as a lender. Authorised and regulated by the Financial Conduct Authority, registration number 452589. Zuto can introduce you to a limited number of finance providers, based on your credit rating, Zuto won't charge you anything for this service, but do get a fee from the lender which varies based on the product or amount borrowed.

Can I take out car finance for my son?

While a person can make an application for a provisional driving licence when they are 15 years and 9 months of age, and legally drive a car from age 17, in order to get finance, they must be 18 years old.

If your child is under 18 and seeking an agreement for his first car, or 18 but possessing a limited history when it comes to credit, you might be asking yourself the question: can I take out car finance for my son? The answer is yes, you can take out finance on behalf of your son or daughter, but there are some factors to consider.

Vehicle registration certificates

You don’t actually have to be the keeper and owner registered to the car to take out finance. There are a variety of products available that will allow you to acquire a finance agreement in your own name but have a different individual named on the V5 certificate, in this case, that of your child.

A V5 or vehicle registration certificate is a document issued by the DVLA containing the information about an individual vehicle regarding its keeper, which is who the certificate of registration pertains to.

Lenders who allow parents to acquire finance for their children

There are a range of lenders who are ready and willing to allow parents to acquire finance on behalf of their children. Our specialist team can offer expert advice if you get in contact to discuss taking out car finance for your son or daughter.

Avoid ‘fronting’ and fraud

It is important, however, that you are always upfront about your intentions to take out finance for a family member. If you make an application for a finance deal and don’t make it clear from the outset that you are taking out finance on behalf of someone else who will be the keeper and registered driver of a car, this is considered ‘fronting’ and you could be accused of fraud.

A common example of fronting is when a parent applies for a car finance agreement with a lender and, when successful, puts their name on the V5 vehicle registration certificate. Afterwards, they replace their name with their child’s.

Acting as a guarantor

If your son is 18 years of age or over and therefore technically able to take out a finance agreement of his own, you may still find that due to certain factors, he has difficulty in acquiring lending. For example he may be studying and therefore lacking a regular monthly income, or because of his age, he may have no checkable credit history for the lender to see and evaluate.

To help your son acquire a car finance agreement, it is possible for you to act as what is called a guarantor for him. A guarantor is defined as someone willing to guarantee they will make payments on behalf of another if at any point during the term of an agreement for car finance, that individual is unable to keep up with their monthly payments.

Acting as guarantor for your son when he is applying for car finance can be a good way of getting around the fact of his limited history where credit is concerned. Lenders are far more confident offering funds to applicants when a guarantor is named in the paperwork.

After you give your consent to the lender, your own credit rating will be checked to support your son’s application for car finance.

As an authority on all areas of the auto industry at Car.co.uk, it is our mission to assist those seeking car finance agreements, keeping them informed and ensuring they get the very best deals for their individual circumstances.

Other related FAQs

Looking for more related content to this? We’ve picked a selection of related topics that you may find helpful

Unfortunately, you can’t get a car loan at the age of 17. However, there are alternative options to consider.

Find out more

It is possible to get a car loan if you have a temporary job, but it may be harder to do so than if you had permanent employment.

Find out more

Whether or not you can get finance depends on a few different factors. Generally though, if you’re between 18 and 79, you’ll be able to apply for finance – and our range of lenders means we can almost always find a deal to suit you.

Find out more

Yes, car finance agreements can be taken out in joint names.

Find out more

Yes, it is possible to have more than one car finance agreement in place, as long as you can show lenders that you’re able to make the necessary repayments.

Find out more

Yes, it is possible to get car finance after retiring from work. The most important thing is that you have a steady income - and this can come from a pension.

Find out more

It isn’t always easy, but it is possible to secure car finance if you are on disability benefits.

Find out more
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