Can I finance a car for someone else to drive?
Wondering if you can finance a car on behalf of someone else? It's a common scenario, but navigating the process can be tricky due to lender requirements. Here’s all you need to know.
Can I finance a car for someone else to drive?
Typically, lenders state in their contracts that the person taking out the loan needs to be the registered owner and main driver of the car.
But once the car finance deal is done and the vehicle is bought, there are usually no legal barriers, and it doesn’t stop you from letting someone else drive the car.
In other words, the borrower must be the registered owner and main driver. But, there's typically no limit on who can drive it.
Can I insure a car on finance for someone else?
Insurance policies add another layer of complexity to the scenario. Insurance companies also generally ask that the owner of the vehicle be listed as the policyholder.
However, you can typically add the other person as a named driver on the policy, allowing them to legally drive the vehicle while insured.
Does car finance have to be in the owner's name?
Yes, simply put, car finance agreements often say that the borrower must be the registered owner and primary driver of the vehicle.
This requirement serves as a safeguard for lenders, ensuring that the person responsible for repaying the loan is also the one using the car.
Can I get car finance for my daughter?
Unfortunately, you can’t get car finance on behalf of your daughter. A car finance loan agreement will require you to be the registered owner of the vehicle and the main driver. However, there’s nothing stopping your daughter from also driving the car.
Can I finance a car for my son to drive?
The same applies to sons. To take out car insurance, you will need to be the registered owner and primary driver of the vehicle.
Have you considered guarantor car finance? This way, your child would have their own car finance loan, but you can agree to make repayments on their behalf should they be unable to.
Can my parents finance a car for me?
No, your parents can’t finance a car for you, as most lenders require the person paying back the loan to be the owner of the car.
However, if your parents take out a loan in their name, there’s no rule to say you can’t drive the car once the agreement is finalised.
Can a parent finance a car for a 17-year-old?
No, parents can’t finance a car for a 17-year-old. Regardless of age, the primary driver needs to be the registered owner of the vehicle.
However, we do offer student car finance. Some of our lenders specialise in bad or no credit history, so if your teen hasn’t had a chance to build up a good credit score yet, don’t worry; we may be able to help.
Can my partner apply for car finance on my behalf?
No, your partner can’t apply for car finance on your behalf either. Each car finance agreement is tailored to the borrower. The lenders on our panel ask that the borrower be the car’s registered owner and its main driver.
If your credit rating is good and you’d like to take out finance in your own name, you can still have your partner’s support during the process. You could even authorise them to act on your behalf. Just let your account manager know.
Can you apply for car finance as a couple?
Yes! We work with a panel of lenders and some of those can accept joint applications for car loans. You can apply for joint application if at least one of you has a licence and at least one is in full-time employment. Other restrictions can apply – some lenders ask that you both share the same address, for example.
Can you put car finance in 2 names?
Yes, you can have a joint finance agreement. But, usually, one person is the main borrower and owner of the vehicle.
Joint finance agreements may entail both people repaying the loan. But, one person is usually contractually responsible for repayments.
Can I finance a car and register it in my wife's name?
No, you can’t finance a car and register it in your wife's name. You must be the main borrower and registered owner of the vehicle. However, if you register a car in your name, she can still drive the car when you get home.