“Should I get my first car on finance” is a question many new motorists find themselves asking. If you’re tossing up between whether to purchase your first car outright or take advantage of finance options, this article is for you.

Read on for five reasons why you should finance your first car, as well as some cons to consider.

1. Unlock access to more desirable models

If you’re wondering if you should get your first car on finance, you probably don’t have the cash to pay for a vehicle outright. Buying a car is a big financial commitment. Furthermore, most people can’t afford to lay down thousands of pounds at once. This is where car finance comes in.

Financing your car is a desirable option for new drivers as it allows you to get behind the wheel of a vehicle that would otherwise exceed your budget. Instead of a lump payment, the cost of ownership is spread over a pre-determined timeframe. As a result, you pay small monthly repayments. Bear in mind that car finance isn’t a greenlight to purchase a luxury SUV on a graduate salary. However, it does allow you to expand your horizons and buy a better car without the need for a huge deposit.

2. Enjoy more reliability

As discussed above, car finance allows you to purchase a car that would otherwise be out of your price range. With this comes the luxury of more reliability on the road. If all you can afford outright is a battered Volkswagen Golf with 200,000+ miles on the odometer, chances are you’re going to run into some problems on the road. With the same budget, car finance allows you to upgrade to a newer and more reliable model.

3. Build a good credit score

If you’re just starting to flex your financial muscles, car finance can be a great way to build up your credit score. Bear in mind that you’ll need to be responsible about your monthly payments and commit to a payment plan you can afford. Consequently, signing a car finance contract (and paying it off) is a gold star on your credit score. In the future, this will help you when applying for credit cards, mortgages and other financial commitments.

4. Stretch your insurance budget

New drivers pay some of the highest insurance rates in the UK.  As a result, the average motorist aged 17-24 forks out more than £1,200 a year. As such, new motorists wondering where they’re going to find that extra £100 a month to cover the cost of insurance may well opt for finance on their first car. With car finance, you can spread out the cost of car ownership and avoid draining your bank account to purchase a car outright. This means you’ll still have plenty of cash to cover essentials like car insurance, road tax, fuel, and general maintenance.

5. Hold onto your savings

Should I get my first car on finance? If you want to hold onto your savings and ensure you have funds for a rainy day, the answer is yes. While you may still need to make an initial down payment (but not always), car finance spreads out the total cost of ownership. As a result, you don’t need to spend all your cash, all at once. This leaves you free to pay off your credit card or simply stash your savings in a high-interest account and watch them grow.

The cons to car finance

While car finance is a wonderful thing and comes with a laundry list of benefits, it’s not always for everyone. To balance out the scales, here’s a few reasons why you may not want to purchase your first car on finance.

• Interest payments can add up

Car finance stretches your budget further, but it does mean you’ll pay more for the vehicle due to interest costs. The good news is, with a good car finance team on your side you can keep these costs as low as possible. In many cases, using car finance to purchase a newer vehicle translates to better fuel economy and less trips to the garage. The money you save can be used to cover interest payments, making car finance a great solution for your first set of wheels.

• Risk of repossession

Your car is secured by your finance loan which means if you default on payments, it could be repossessed. While this is an issue for some, most car finance applicants are responsible and have no trouble making payments on time. The key is to pick a car that falls within your long-term budget and only commit to monthly payments you can afford.

Get behind the wheel with car finance today

Ready to get behind the wheel of your first car? Whether you’re a teenager who’s just passed their driving test or an adult in the market for their first vehicle, we’re here to help. With rates starting from just 6.9% APR, we offer some of the most competitive car finance deals in the UK.

Car finance options

Worried about your credit rating? Don’t be. We have access to one of the largest lending panels in the UK. This means we can create tailored finance solutions for motorists with gold-standard credit ratings, as well as those with not-so-perfect scores. If you’re a young driver and your credit rating is still in the works, guarantor finance can be a savvy solution for the responsible borrower. Backed by a family member, this payment plan reduces the risk for the lender and increases the likelihood of an acceptance. It’s just one of many ways we can help you enjoy all the benefits of purchasing your first car on finance.

Give us a call today to find out more about our competitive car finance rates and chat to an advisor about how to get started.

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!