Car Financing for Students: With Guarantors or Collateral to Your Own Car
5 Jul 2025
Katrin Straub
Managing Director at nextsure
Owning a car during your studies seems unattainable for many. Banks often hesitate due to a lack of collateral and irregular income. However, there are proven ways for students to successfully finance a car with guarantors or collateral.
The topic in brief and concise terms
Students can obtain car financing through a guarantor with good credit or by transferring ownership of the vehicle as security.
An independent guarantor is the standard for banks, but it carries a high risk for the guarantor because they are directly liable.
The transfer of ownership as security, where the vehicle registration document serves as collateral, can lead to more favourable interest rates.
Für Studenten bedeutet ein Auto ein großes Stück Freiheit und Flexibilität – sei es für den Weg zur Uni, den Nebenjob oder den Wochenendbesuch bei der Familie. Die Finanzierung stellt jedoch eine Hürde dar, da die meisten Studenten nicht über ein regelmäßiges, hohes Einkommen verfügen, was für Banken ein Risiko bedeutet. Eine durchdachte Autofinanzierung für Studenten mit Bürgen oder Sicherheiten ist oft die einzige Lösung. Dieser Artikel zeigt Ihnen, welche Voraussetzungen Sie erfüllen müssen, wie eine Bürgschaft funktioniert und welche Alternativen es gibt, um den Traum vom eigenen Fahrzeug sicher zu realisieren.
The Situation: Why Banks Look Closely at Students
Banks often assess loan applications from students with caution. The main reason is their typically low or irregular income; BAföG or allowances are generally not considered as countable income. Additionally, young people often have a short credit history, which can result in a below-average Schufa score due to a lack of empirical data. For lenders, this means a higher default risk of up to 15 percent compared to employees. A permanent residence in Germany and being of legal age are indeed basic requirements, but they are usually not sufficient by themselves. This financial uncertainty is the core issue that needs to be addressed.
The Guarantor as a Proof of Trust: This is How Financing Works
One of the most common solutions is to include a guarantor in the loan agreement. Here, parents or close relatives usually step in, who have a good credit rating and stable income. The guarantor is contractually obliged to cover the instalments if the student becomes insolvent. Banks almost always prefer an absolute guarantor’s liability, where they can directly approach the guarantor in the event of default, without first trying foreclosure against the actual borrower. This form of security significantly reduces the risk for the bank and increases the chance of loan approval by more than 50 percent. With a guarantor, the auto loan despite probation or studies becomes realistic. The legal obligations of the guarantor are clearly regulated in the Civil Code (BGB) and should not be underestimated.
Transfer of ownership as security: Using a car as security
An alternative to a guarantee is the transfer of ownership as security of the financed vehicle. In this case, the car itself serves as loan security. Legally, the borrower transfers ownership of the vehicle to the bank for the duration of the financing, but remains its owner and may use it without restriction. The vehicle registration document Part II (logbook) is deposited as security with the bank, which prevents the sale of the car without the bank's consent. This method is standard for purpose-based car loans and often leads to more favourable interest rates than freely usable instalment loans. Once the final instalment is paid, ownership automatically reverts to the borrower. This option is particularly interesting for those who cannot or do not wish to appoint a guarantor and are aiming for a clear used car financing.
Step by step to successful car financing as a student
A good preparation is crucial to maximise the chances of securing a loan. With a clear strategy, the process can be successfully managed in four steps:
Check and improve creditworthiness: Request a free SCHUFA credit report to know your score. A score above 90 percent is considered a solid basis.
Find a suitable guarantor: Talk to potential guarantors in your family about their willingness and financial capability. The guarantor should have a permanent employment contract and a clean SCHUFA record.
Gather documents: Prepare all necessary documents. This includes ID, proof of enrolment, any possible proof of income (e.g., from a part-time job), as well as the guarantor’s payslips and SCHUFA report.
Compare offers: Obtain several loan offers. Pay attention not only to the effective annual interest rate but also to flexible terms such as free special repayments or the possibility of instalment breaks. An unbureaucratic student loan can offer advantages here.
This structured approach increases the likelihood of approval by at least 30 percent.
Legal Aspects: What Guarantors and Borrowers Need to Know
A significant legal obligation regulated in the Civil Code (BGB) in paragraphs 765 and following. A guarantor is liable with all of their seizable assets for the debtor's obligations. If the guarantee is classified as "immoral" because it financially overwhelms the guarantor, it may be invalid – but proving this in practice is quite difficult. Our expert tip: The guarantee agreement should clearly limit the liability amount and ideally be structured as a deficiency guarantee. In the usual direct guarantee, the guarantor waives the “defence of prior discussion” (§ 771 BGB), which allows the bank to pursue them immediately. Financing a driving licence can also be done via a loan with small installments, where similar legal principles apply.
Explore smart alternatives to traditional car financing
The classic instalment loan isn't always the best solution for student mobility. It’s worth considering other options that often offer more flexibility with less financial risk. Here are three popular alternatives:
Car leasing: Instead of buying the vehicle, you only pay for its use over a fixed period, usually 24 or 36 months. The monthly payments are often lower than with financing.
Car subscription: This model offers maximum flexibility. A monthly payment already includes all costs such as insurance, taxes, maintenance, and tyres – only fuel is extra. The contract terms are very short, often only six months.
Buying a cheap used car: A small loan for a reliable used car significantly reduces the financing amount. An apprentice loan for the first car can serve as a model here, as the financial situation is comparable.
These alternatives can reduce financial pressure and are more suited to the student phase of life.
Conclusion: With the right coverage for your dream student car
Car financing for students is not an impossibility, but it requires careful planning and the right security strategy. Whether through a financially strong guarantor or the transfer of ownership of the vehicle as security – both routes pave the way to a successful loan agreement. The key to success lies in transparent communication with the bank and a realistic assessment of one's financial capabilities. Good preparation and comparing different offers protect against costly mistakes and ensure long-term enjoyment of your own car. Adequate car & mobility insurance completes the protection for your new vehicle. Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete suggestions for optimization.
More useful links
CHE provides comprehensive information on student financing in Germany.
Statista supplies statistics on the various types of student financing.
The Federal Statistical Office (Destatis) publishes press releases on relevant data.
The official service Gesetze im Internet offers the full legal text of § 765 BGB regarding suretyship.
The Federal Agency for Civic Education (bpb) explains the term suretyship in its legal glossary.
The KfW provides information on its student loan as a funding product for private individuals.
The Consumer Advice Centre offers important information on revoking loans, especially for car financing.
The Deutsche Bundesbank provides statistics on interest rates for consumer loans to private households.
FAQ
Wie hoch darf der Autokredit für einen Studenten sein?
Die Kredithöhe hängt von der Bonität des Bürgen oder dem Wert der Sicherheit ab. In der Regel bewegen sich die Summen für Studenten zwischen 5.000 und 15.000 Euro, was für einen soliden Gebrauchtwagen oder einen Kleinwagen ausreicht.
Was passiert, wenn ich als Student die Raten nicht mehr zahlen kann?
Wenn Sie die Raten nicht mehr zahlen können, wird die Bank sich bei einer Bürgschaft direkt an Ihren Bürgen wenden und die ausstehenden Zahlungen von ihm einfordern. Bei einer Sicherungsübereignung kann die Bank das Fahrzeug einziehen und verkaufen, um die Restschuld zu decken.
Kann ich den Kredit schneller zurückzahlen?
Ja, viele moderne Kreditverträge erlauben kostenlose Sondertilgungen. Damit können Sie den Kredit schneller abbezahlen und Zinskosten sparen. Achten Sie bei Vertragsabschluss darauf, dass diese Option ohne zusätzliche Gebühren enthalten ist.
Welche Rolle spielt der Schufa-Score bei der Autofinanzierung für Studenten?
Der Schufa-Score ist sehr wichtig. Da Studenten oft nur einen geringen Score haben, wird die Bonität des Bürgen umso entscheidender. Ein guter Score des Bürgen (über 95 Prozent) ist oft die Voraussetzung für eine Kreditzusage zu fairen Konditionen.
Ist Leasing eine gute Alternative für Studenten?
Leasing kann eine gute Alternative sein, da die monatlichen Raten oft niedriger sind als bei einer Finanzierung. Allerdings sind auch hier eine Bonitätsprüfung und oft eine Anzahlung oder ein Bürge erforderlich. Am Ende der Laufzeit gehört das Auto Ihnen nicht.
Welche Unterlagen benötige ich für den Antrag?
Sie benötigen Ihren Personalausweis, eine aktuelle Immatrikulationsbescheinigung und ggf. Nachweise über Nebeneinkünfte. Ihr Bürge muss seine letzten drei Gehaltsabrechnungen, einen Arbeitsvertrag und eine Schufa-Auskunft vorlegen.
