Help & Advice

Can i get car finance for my son?

My son wants to buy a new car, but he only works for an agency and cannot get finance. The garage have told him to get me, his father, to take out the agreement in my name, but with his bank details on it.

I understand that I will be liable if things go wrong regardless of whose bank details are on it. Will this prevent me from getting a loan for a car in a couple of years should I wish to do so and are the garage being lawful in suggesting this course of action?

I am also concerned that the agreement would not be legal as it has my name but his bank account details on it. Obviously I would like to help a family member if I could but isn't there a better way?

David P


Answer

Hi David, thank you for your question and apologies for the delayed response.

I would advise against you taking out finance for your son in your name, as this would be classed as an 'accommodation deal' and many finance providers state in the contract that the person signing the agreement must be the registered owner/keeper and the main driver too.

I'd advise making a joint application with your son or acting as a guarantor on his application for car finance, as we do have lenders on our panel that can help agency workers get car finance. You could just act as a co-hirer but you'd need to make sure all payments are made on time otherwise this would effect your credit history. If you then wanted to get further finance in the future for another car you should be fine as long as you could show that you could afford both cars.

Please discuss this with your son, and if you decide you'd like to choose this optionplease make a joint application. If approved, you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Answer correct as of September 2016

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Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender