This is a different type of car loan whereby a third party (usually a relative or a friend) guarantees a loan as a back-up should you fail to make repayments. If a loan is accepted, it is paid to the guarantor which is then released to the borrower. The borrower is then responsible for making regular payments to the lender.


  • Having the backing of a guarantor is a boon for those that have struggled to get finance in the past, and increases their chances of securing a loan, as a lender is more likely to accept.
  • No deposit is usually required.
  • For those that may have struggled to get credit in the past, making regular payments on this loan could be a great way to repair your credit rating.
  • The ability to fix the length of contract and the amount of repayments allows for easier budgeting.
  • As the loan tends to be unsecured, it allows the freedom to spend the loan as the borrower sees fit. In this respect it is similar to a normal personal loan.


  • A guarantor loan may end up costing more in repayments than other types of loans on the market.
  • As the name suggests, the loan depends on finding a guarantor to cover your loan. Most lenders insist that this person is also a homeowner. Thus the nature of the loan means you have an obligation to two people.

At Gator Car Finance, we have a wealth of options ready and waiting for your no-obligation enquiry. Apply now and see what we can do for you today. Apply now.