Here’s our handy guide with everything you need to know when it comes to financing a brand new car with insurance included* for first time drivers!

happy teen with car key
Young drivers looking to get their own set of wheels might think that they’re not able to finance their own car, but we’re here to tell you that you can! In fact, it’s a great and affordable way to get you on the road in a brand new, safe set of wheels.
We’ve pulled together this handy guide for buying your first car on finance! We’ll be covering all the most asked questions and breaking down what you need to do to apply for car finance. If you’re interested in applying for car finance, keep reading!

Should I get my first car on finance?

Some people may think that as a first time car buyer, financing a car is impossible - we’re here to tell you that’s not the case. Not only is it possible, we actually think getting a brand new car as a first car is a great idea - and here’s why!

Safety is key
Brand new cars are statistically safer on the roads than older cars, and they also come with plenty of safety and driver convenience technology which will help new drivers on the road who may be a bit nervous behind the wheel to begin with.

Drive a familiar car
A lot of young drivers choose to get a car similar to the one they learned to drive in, which more often than not, is a newer car. If you’re used to a newer car, then buying a newer car will help you when you pass and don’t have your instructor next to you anymore.

Lower up-front costs
Weighing up the costs of new vs used cars can be confusing - and yes, whilst second hand cars are cheaper to buy, they’re also more likely to have mechanical issues which can cost you much more in the long run. If you opt for a brand new car with Marmalade, you won’t have to pay for an MOT for 3 years and we’ll cover the first years Tax and Insurance for you!

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Applying for finance online

Car finance for first time drivers should be simple. Follow our 4 simple steps!

Step 1 - Build your perfect car
Once you've checked out the wide range of young driver friendly cars we have on offer - choose the one that's best for you. We'll show you the price of the base model as a default, but you can customise this before we show you your final quote.

Step 2 - View your payment options
We'll show you your monthly price based on a £500 deposit. Our handy calculator also allows you to update the price by changing your deposit contribution, the length of time you choose to finance your car, and the finance type (HP or PCP - we’ll talk a bit more about that below!)

Step 3 - Fill in your details
Once you're happy with the price, and if you'd like to proceed, go ahead and complete the form. We've listed all the information you'll need to have to hand this article (we're helpful like that!). If you're aged 18 or over, you'll need to apply in you're own name. If you're 17 a parent or guardian should apply instead.

Step 4 - We'll be in touch
We'll get in touch with you within 48 working hours to let you know if you've been approved. We'll then talk you through the next steps - like paying your deposit and discussing the delivery time of your brand new car!

PCP vs HP - what’s the difference?

PCP - Personal Contract Plan

This plan allows you to pay a little bit less a month for your car for the whole duration of your finance, and then once the term comes to an end (3 or 4 years later, or however long you decide to finance your car), there will be a balloon payment to make should you wish to own the car. If you don’t want to buy it at the end of the finance term, just hand the car back to us.

HP - Hire Purchase

This plan adds a little bit more on top of your monthly payments for the duration of your finance but at the end of the term, the car is yours and there’s no additional payment required!

So which should I choose?

If you know you’re going to want to keep the car you purchase for years to come, then HP might be your best bet - there will be no additional payment to worry about. If you’re likely to want to switch cars at the end of your finance, then PCP may be the best choice - you’ll be saving some money each month, after all.

First car finance tips

Before jumping into the financing decision, there are some things to consider first. Getting a car on finance is a big commitment, and even though it’s a brilliant way to help young drivers like yourself get on the road, we want to make sure you know exactly what you’re in for. Here’s some of our top tips and things to consider before financing a car...

Can you afford it?
Work out your monthly income and outgoings to ensure you will have the funds every month to pay for your car. Don’t forget, your finance plan will likely be 3-4 years long, so you need to make sure that not only can you afford it now but there’s no immediate change to your income that might mean you can’t afford it in the future.

Find a guarantor
Getting car finance for 18 year olds without a guarantor can be tricky. The lender needs to know you'll be able to pay on time every month, and without a credit score this can be hard to prove. If you’re 17 or 18 and looking to get car finance, we recommend you add a guarantor on your car finance application. A guarantor is someone who agrees to pay your finance if you don’t pay for it - it’s usually a parent or close relative, but can also be a close friend.

Car finance for 17 year olds
Many ask if you can get car finance at 17 years old and unfortunately, the answer is no - but wait, we can still help! By law, you have to be over 18 to take out a loan, which is why we can’t finance cars to 17 year olds. However, if you’re 17 and you’re wanting to finance a car, you can ask a parent, close relative or friend to finance it for you. The car, and insurance would still be yours - but the finance would be associated with them.

    happy teen in car

    What do I need to apply for car finance online?

    So, you’re ready and raring to go to apply for finance. You’ll be pleased to know it’s quick and easy to do online – and to make it even easier, because we’re nice like that – we’ve listed some of the information you will need to have to hand before you get started. Here are the things you might not know off the top of your head (because we’re hoping you know your name and date of birth without having to find some documents to help!):

    • 1. Driving licence number (the driving licence number can be found in section 5 of your photo licence and is 16 characters long followed by two digits)

    • 2. The length of time you’ve been at your current address, plus your previous address if you’ve been at your current address less than 3 years

    • 3. Employment details including your employer’s address, phone number. If you’ve been there less than 3 years, you’ll need to let us know your previous employment status

    • 4. Your income before tax is deducted (this will be on your annual P60 or your employment contract if you don't know it off the top of your head

    • 5. Your bank details – sort code, account name, account number and how long you’ve been with the bank. We won’t take any money, but this is needed by the lender to perform a credit check

    • 6. If you’re adding a guarantor we’ll need them to complete their personal details and the same information you will have provided

    Cheap first cars on finance

    We offer a wide range of cars that can be purchased on finance to suit all young drivers - here’s our top cheapest options - the best news is the majority come with 12 months insurance included...
    kia picanto

    Kia Picanto

    A smart little city car that is enjoyable to drive and is perfect for nipping in and around town!

    fiat 500

    Fiat 500

    The one we all know and love - everyone's favourite retro classic with a Hybrid upgrade!

    vw up

    VW UP!

    The perfect city car that combines practical features, good tech and great looks!

    Frequently asked questions

    Does applying for car finance affect credit rating? arrow
    Whenever you apply for new credit in your name, lenders will make a hard search into your credit report. This is where they access your full credit history and is completely normal and nothing to worry about. What should be noted is that too many hard searches in a short space of time can hurt your credit score.
    Can an 18 year old get car finance? arrow
    Yes - from the age of 18 by law you can take out finance in your name. It’s worth noting however, that you’re unlikely to have built up a good credit score since turning 18 which is why often, 18 year olds looking to finance a car will need to add a guarantor to their application. It will improve your chances of being accepted for finance.
    Can you finance a car at 17 with a cosigner? arrow
    By law, anyone under the age of 18 cannot have any form of finance or loan in their name, even if you have a cosigner. If you're 17 and looking to get a brand new car on finance with us, a parent or guardian will need to apply for the finance on your behalf.

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