Car Finance With Provisional Licence

What is a Provisional Licence?

A provisional driving licence is a document issued by the DVLA that allows you to learn to drive on public roads under the supervision of a qualified driver (usually a qualified driving instructor, but anyone who has three years of driving experience can help you). It’s a temporary document that signifies a step towards obtaining a full driving licence.

Applying for car finance with a provisional licence can mean you will face some challenges or restrictions.

These include:

Limited Driving Experience: Lenders may perceive individuals with provisional licences as higher risk due to their limited driving experience.

Insurance Costs: Insurance premiums for provisional licence holders can be higher, influencing overall affordability.

Choice of Vehicles: Some lenders may restrict the types of vehicles that can be financed by provisional licence holders.

Interest Rates: Due to the perceived higher risk, interest rates may be slightly elevated compared to those offered to drivers with full licences.

Of course, there are reasons why you would want to apply for car finance with a provisional licence.

These include:

Familiarity with the car: Every make and model of car is different and it takes time to learn each car’s layout. If you can take driving lessons in the car that you will ultimately drive solo, you will be a lot more familiar with the car when you pass your test.

Motivation: When you are learning to drive, you may have bad days or may even need to take your driving test multiple times. If a few lessons haven’t gone well, it can be tempting to give up. If you already have your car and are paying off finance, this will motivate you to stick with driving lessons.

Time to pay off the loan: If you go for car finance with a provisional licence, you will have effectively paid off some of the loan before you pass your test, and become fully responsible for additional costs such as fuel.

Provisional licence car finance can be seen as a higher risk for the lender…

But don’t worry, there are steps you can take to improve the chances that your application is approved.

Build a Strong Financial Profile: Manage any existing debt, and make sure you can show a steady source of income.

Research Lenders: Check to see if lenders will consider applications from people with provisional licences.

Budget: Check your existing income and expenses to ensure you can comfortably afford repayments.

Consider a Guarantor: A guarantor agrees to repay the loan if you default. This reduces risk to the lender and can increase the chances of approval.

The CarMoney ninjas will help you find finance companies that are likely to approve car finance for provisional licence holders.

Securing car finance with a provisional licence is possible!

It’s important to understand the challenges and reasons why you would want to apply for finance. Responsible financial behaviour not only leads to acquiring the car you desire but also lays the foundation for future financial success.

Get a quote or contact CarMoney today.