Financing a car for your child is a proud moment for many parents. Often you are looking to finance a car as your son or daughter are at a point in life where a car is simply too expensive. We are often asked whether it’s possible to finance a car for a son or daughter, so here’s a run-through of both the available routes with My Car Credit.

Guarantor Loans

A guarantor loan is one way of financing a car for your son or daughter. This type of car finance agreement works similarly to a normal loan, in the sense that your child will be responsible for making the agreed repayments. However, it also allows for a third party (i.e. you) to guarantee the repayments in the case that your son or daughter is unable to make them. By being a guarantor on the agreement, you are reducing the risk to the car finance lender. This can increase the likelihood of securing car finance on behalf of your son or daughter.

Guarantor Loans are a big responsibility for both of you. Should your son or daughter fail to make the monthly repayments, you would be liable for the debt. If you fail to make the payments on behalf of your child, both of you could be issued with a County Court Judgement (CCJ) and you would both have damaged credit profiles, which would affect your ability to secure finance in the future.

A guarantor loan can create an opportunity for your son or daughter to improve upon their credit score for the future. An improved credit score will increase their chances of being approved for any future financial agreements they should wish to take.

Joint Application

A stronger option for financing your son or daughter’s car is with a joint application – an agreement in which both of your circumstances are taken into account. This is especially useful when your child has a good income but a slightly poorer credit score.

In this case, both parties are responsible for upholding the repayments, and if one is no longer able to meet their financial commitments, the other must pick up the full amount. The risk with this kind of agreement is that any missed repayment (from either party) will be recorded on both parties’ credit files. However, if you are supporting a child with a good income but a less than perfect credit score, this is an option to consider.

Financing your child’s car is a matter of pride for lots of parents, but you must consider all your options before signing onto a car finance agreement.

Guarantor loans and joint finance are two ways to get your child up and running with My Car Credit – whilst our online application form doesn’t allow for adding in an additional person, our experienced Car Credit Specialists can help you with this over the phone. Simply give us a call on 01246 458 810.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!