Guarantor car finance: can I get it and how does it work?
Written by
Joe Towner
Reviewed by
Amy LancashireGuarantor car finance means someone you trust, usually a family member or close friend, agrees to make your payments if you can't. It's possible to get, but it isn't widely available.
It's also different from a guarantor loan, which is an unsecured personal loan. If you're new to the options when financing a car purchase, start with how car finance works.
Can I get car finance with a guarantor?
Some lenders may accept a guarantor, but not all do, so it’s important to check with specific lenders before you apply to avoid being rejected and harming your credit score.
PCP and HP are the most commonly held types of car finance, according to research carried out for the FCA and published in September 2025. With both, the lender owns the car until you've made all your payments. Instead of a guarantor, some lenders offer joint applications, where you apply with someone else and you're both responsible for the payments.
How does guarantor car finance work?
If a lender is willing to accept a guarantor, it usually works like this:
You're both checked: the lender assesses whether you can afford the finance. It must also check whether paying under the guarantee could seriously harm your guarantor's finances, and make sure they're told before signing when the guarantee might be called on and what that would mean for them.
Your guarantor signs a guarantee: this is a separate written agreement between your guarantor and the lender. Your guarantor must be given a copy of it and of your finance agreement.
You make the payments: as long as you keep up with them and stick to the terms of your agreement, your guarantor won't have to pay anything.
If you miss payments: the lender can ask your guarantor to pay. If it sends you a default notice, it must send a copy to your guarantor too. Your guarantor can't be made to pay more, or sooner, than you'd have to pay yourself.
Who can be a guarantor for car finance?
A guarantor is usually a parent, relative or close friend with a good credit history who could afford your payments if needed. Each lender sets its own criteria, but a guarantor usually needs to:
be 21 or over, or sometimes 18
have a good credit history
live in the UK
be able to afford the payments if you can't
own their home, for some lenders
Some lenders may also accept a partner as a guarantor, as long as you each have a separate bank account.
What does being a guarantor for car finance mean?
Being a guarantor is a big commitment. If you agree to be one:
You're responsible for what the borrower owes: if they don't pay, you'll have to, including any interest and charges, until everything owed has been paid.
You won't own the car: the finance agreement is between the borrower and the lender, and you're not a party to it.
You could face court action: if you don't pay what's owed under the guarantee, the lender could take you to court.
It can affect your credit file too. According to Experian, the lender's check on you is normally a soft search, and the guarantee itself won't usually appear on your credit report. But it may create a financial association with the borrower. Read more about how joint accounts affect your credit score. If you have to make any payments for the borrower, that will show on your credit file, and paying late or not at all could harm your credit score.
No one should feel pressured into being a guarantor. MoneyHelper says that if a partner or family member pressures you into it, that can be financial abuse.
What's the difference between a guarantor and a joint application?
Guarantor | Joint application | |
|---|---|---|
Who's responsible for payments? | You, with your guarantor paying only if you don't | You're both responsible for the full amount |
Are your credit files linked? | They may be, if the guarantee creates a financial association | Yes, the agreement shows on both files and links them |
Who owns the car? | The lender, until the finance is paid off | The lender, until the finance is paid off |
Some lenders that offer joint applications require you both to live at the same address. Read more about how joint loans work.
Can I get car finance without a guarantor?
Yes. Most car finance doesn't involve a guarantor, and the agreement is usually just between you and the lender. Before lending, a lender must assess your creditworthiness, including whether you can afford the repayments, and this usually involves checking your credit file.
If your credit history is limited or poor, some lenders specialise in lending to people with lower credit scores, though you may be offered a higher APR.
Guarantor car finance FAQs
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
