Today, we will be taking a closer look into the age limits for car finance plans. Now, in theory, we would only need to list a figure or two and the story would be done, but that is not the case. The more that you explore the issue, the more you realise why certain ages may be liable for car finance, but may still find it hard to have a purchase approved.
So, the minimum age to be accepted for car finance is 18. Given that 16 is the minimum age for driving as a whole, it makes sense, given that between school, sixth form college and early work commitments, it would probably take most young people until they’re around 18 anyway before they were ready to drive and had passed their tests, if they did so at the earliest possible opportunity. So, 18 is the minimum age to be accepted for car finance, but that doesn’t mean that they will receive a deal.
Indeed, an 18-year-old is unlikely to have built up much in the way of credit, and a credit check is often (but not always) an important factor in a car finance plan being given the green light. As a matter of fact, a young driver may find that they do not build up enough credit until the age of 20, 21 or beyond that, and we’re not just talking positive credit here; we’re talking credit as a whole. There are still options to circumvent this, though, so it is not an impossibility for an 18-year-old to get a car finance deal. It’s just a harder and more time-consuming process, and also consider the sky-high insurance costs at that age which will also impact upon any deal.
Let’s now look at it from the other end of the scale: the maximum age that a driver can be to have a car finance plan. That figure would be 75, which when you consider that plans last from one to seven years, would cover an elderly motorist into their late 70s or early 80s. This does not mean that they cannot continue to drive beyond then, but if they did, they would have to find a car independent of any finance companies. The law says that 75 is the top age level, so those approaching that number would be wise to enter into a new finance agreement as late as they legally can.
These are just some important facts and figures relating to car finance and age limits, but you can find out more on our website information page here: pcpmissold.co.uk