Can You Get Car Finance Without A License UK?

Buying and owning a car in the UK might seem like a straightforward matter, but a myriad of questions often accompany it. As long as we take a financial perspective, a frequently asked question is, “Can you get car finance without a license UK?” 

Whether you need a car for someone else or have another reason not to own a driver’s license, it is essential to understand what to do and what not to do in these situations. This article explores the process and legislation for acquiring car finance without a driver’s license.

Welcome to our guide, which will answer the most pertinent questions and cover the most critical aspects.

Understanding Car Finance In UK

Understanding car finance in the UK means choosing various options based on their pros and cons and finding a fit for factors such as individual preference, circumstances, and buyer’s plans regarding the vehicle. These are the most frequent options:

1. Personal Loan

  • Description: Cash borrowed from a bank or other financial institution to pay in full the price of buying your car.
  • Advantages: Full ownership means no mileage or modification restrictions; sometimes offers a competitive interest rate; doesn’t typically require any down payment.
  • Disadvantage: You need a firm credit history for affordable payouts and often have larger monthly payments than alternative finance sources.

2. Hire Purchase

  • Description: You pay a deposit, and the interest added to the remaining balance is divided over 12 to 60 months. You make payments, and then you own the car.
  • Advantage: no mileage limitation, balanced monthly yields, relevant to depositing and non-depositing buyers.
  • Disadvantage: you can officially own the car after the final payout; standard interest is higher than on a personal loan.

3. Personal Contract Purchase

  • Description: This option is similar to HP, but instead of paying off the car’s whole cost, you cover devaluation, and at the end of the term, you have to make an additional payout to keep the vehicle.
  • Advantage: lower monthly payouts compared to HP; at the end of the agreement, you can keep the car, sell it back, or trade it.
  • Disadvantage: there are restrictions on mileage and extra expenses if you need to return the car.

4. Lease

  • Description: This is a type of lease in which you pay a monthly rental fee to use the car and then return it at the end of the lease period.
  • Advantage: monthly payouts are lower than purchases; there is no fear of the car devaluing or poor sales due to poor market conditions.
  • Disadvantages: no possibility to own the car; restrictions on mileage; extra payouts if exceeded.

5. Credit Card

  • Description: Acquisition of a new car paid with a credit card with a sufficient limit.
  • Advantage: some credit cards offer interest-free periods and rewards; the purchase depends on the purchase protection policy.
  • Disadvantage: high interest if the money is not paid off during the interest-free period; few dealers accept credit cards for significant acquisitions.

Choosing The Right Option

When choosing an option, keep in mind these facts: 

  • Excels your budget: this covers monthly payouts and total payouts over the term, including fees.
  • What is your usage pattern: how far do you plan to go with the car, do you plan to keep it, and how often do you change vehicles? 
  • Credit rating: a significant factor affecting your opportunities and rates available.

Can You Get Car Finance Without A License UK?

In the UK, in most cases, you can get car finance even without a valid full driving license. However, additional factors and conditions may apply, and different options are available compared to a person who possesses a license. It is essential to consider the following factors:

  • Lenders’ policy: Some lenders have specific schemes or policies for providing loans to license-free people. A person can contact appropriate agencies directly or explore the mentioned terms and conditions.
  • Type of finance: different types of car finance might have particular requirements. For example, a personal loan is not linked to a car, so this type of credit may not require a license. At the same time, Hire Purchase or Personal Contract Purchase agreements should have specific demands.
  • Vehicle purpose: If it is planned to use a car for business or give it to a licensed person, a lender might provide credit. A clear explanation of a scheme is required.
  • A guarantor or joining application: A lender might accept an application if a guarantor has a driving license or a person can make a joining application with a person who has a license.
  • Insurance: Getting a loan without a license might be a problem. Almost all insurance companies require the policyholder to have a valid license. It is necessary to clarify how a car will be insured and if a contract requires comprehensive insurance.
  • Risk: Lending to an unlicensed person might be more risky for a lender, so rates and terms may differ. Therefore, calling several lending institutions or referring to banking consultants is suitable for clarifying the conditions and options. 

In addition, a person might apply to a personal financial advisor or a car finance specialist to get more detailed information on the issue.

How To Apply For Car Finance Without A License?

Applying for car finance without your driver’s license might be difficult. Usually, you must prove your identification and show that you can legally drive a car you want to finance. Hence, here are several steps and alternatives if you are in such a situation:

  • Understand why

Firstly, understand why and identify your reason for applying without a driver’s license. Common reasons are buying a car for somebody else to drive it, buying a collectible vehicle, or planning to get your license later.

  • Gather alternative identification

Gather other legal forms of ID and proof of identification, such as a passport or state ID card, to identify your lender.

  • Search for other lenders and dealerships.

However, some lenders and dealerships do not require a driver’s license for financing a car. Although, some might make an exception.

  • Appoint a co-signer

If you have a cosigner with a valid driver’s license and a good credit history, you might be eligible for finance more easily.

  • Preparation

Prepare yourself with all necessary financing documents like proof of income, residence, insurance, and financial responsibility. This means even without a license, you need proof of paying for a car and assurance that you have insurance.

  • Buying insurance

Find a company that will accept insuring a vehicle without a driver’s license. The car in insured status might be registered under somebody else’s responsibility.

  • Buy a car directly

You can buy a car directly without financing it, so no evidence is required to be sent to the lender.

  • Legal responsibility

Ensure that you are responsible for using the car according to the law. Financing a vehicle for someone who cannot legally obtain a driver’s license can cause legal issues.

  • Consult with a professional

Contact a finance or legal advisor to understand your responsibilities and rights when financing a car without a driver’s license.

  • Shop around and negotiate

Once you are ready to visit some lenders and dealerships, shop around and negotiate. Some businesses may have more relaxed requirements for your case than others.


The answer to can you get car finance without a license UK is, however, a yes, but with many conditions and challenges. People can do it by using their knowledge about how a lender thinks, preparing well for the application, and being aware of all choice opportunities. Thus, it is not about having a driver’s license but proving the ability to pay and offering the right strategy to finance.

Leave a Comment