No Guarantor Car Finance
Applying for car finance without a guarantor is a popular option for Irish drivers. No guarantor car finance means you are the only person responsible for making repayments. Because of this, you need to prove to a lender that you can comfortably afford the finance payments in order to be approved.
Warning: If you do not meet the repayments on your hire-purchase agreement, your account will go into arrears. This may affect your credit report, which may limit your ability to access credit, a hire-purchase agreement, a consumer-hire agreement or a BNPL agreement in the future.
Warning: You may have to pay charges if you pay off a hire-purchase agreement early.
What Are The Main Options For No Guarantor Car Finance?
You have three options for no guarantor car finance, hire purchase (HP), personal contract purchase (PCP) and a personal loan. We’ve taken a look at each below.
HP is a popular finance type, where car ownership is guaranteed once repayments are made. In a HP agreement, you usually make repayments over a time period ranging from 2 to 5 years, although this can change based on your lender.
HP suits people looking for eventual ownership without mileage limits during the finance agreement.
A personal contract plan (PCP) includes lower monthly payments because some of the vehicle value is left until the end of the agreement. In a PCP agreement, you tend to make an initial deposit, followed by lower monthly payments than a HP agreement, with different options at the end of the term.
- Pay the balloon payment and keep the car.
- Return the car.
- Use any equity towards another vehicle.
PCP is best suited to people who want to change cars every few years, with flexibility at the end of the term.
LM Operations does not offer PCP.
Personal loans are popular for first-time buyers, and involve looking to receive loans from Irish banks and credit unions.
The money is then used to purchase the car outright, making you the legal owner immediately. You will then be required to pay off the loan.
LM Operations does not offer personal loans.
How No Guarantor Car Finance Works
The Requirements To Qualify For Finance Alone
There are no set requirements to qualify for finance, with every circumstance being different from the other. In saying that, there is a common set of factors that lenders look at when it comes to qualifying for finance.
✅ Your current income
✅ Your employment stability
✅ Existing financial commitments
✅ Your repayment history
✅ The affordability of the finance agreement
✅ Your ability to provide evidence that past financial circumstances have improved
Unsure of what you need to apply for finance? Check out our guide below.
Bad Credit Car Finance With No Guarantor
If you’ve had credit problems in the past, getting finance without a guarantor can seem tough. Poor credit can hurt your chances of finance, but getting approved is definitely possible; you just need to find the right lender.
Take a look at our bad credit support for more information.
How We Support No Guarantor Customers
Here’s what we offer our guarantor customers.
📲 Straightforward online application.
⏩ Fast decision process.
❤️ Consideration for near-prime applicants.
🤝 Responsible lending approach.
🔎 Clear and transparent agreements.
Apply For Finance Today
Make the most of our human approach, with quick decisioning and dedicated support throughout your journey.
Take the first step to your new car today.
FAQs For Refused Car Finance Customers
How Do I Get A Loan Without A Guarantor?
To get a loan without a guarantor, you’ll need to display that you can afford repayments without the help of someone else. A lender will require proofs and certain documents when you apply too. Take a look at the type of documents you need here.
What Are The Risks Of Being A Guarantor For A Loan?
The main risks involve financial and credit score penalties for missed payments. Here’s a look at all the common risks of being a guarantor.
- Having to take on full financial responsibility
- Credit score drop
- Potential legal action if outstanding repayments aren’t met
- Impact on future lending chances
Do You Need A Guarantor For Car Finance?
If you’ve had past failed applications, you might need a guarantor in order to be approved for finance. You may also need a guarantor if you’re a first-time borrower with limited credit history, or if you’ve had recent defaults.
What Are The Rules For Loan Guarantors?
Loan guarantors are liable for repayments if the main signer fails to meet monthly payments. The loan guarantor won’t own the car, but their responsibility to make repayments is in place until the finance deal is paid off.