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 question, but car finance agreements typically require the borrower to be the registered owner and main driver of the vehicle. Here’s what you need to know about car finance and vehicle ownership rules.
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 may not stop you from letting someone else drive the car.
In other words, the borrower must be the registered owner and main driver. But, you may be able to add additional drivers, as long as they have appropriate insurance. Please speak with your insurer to check the requirements.
Can I insure a car on finance for someone else?
Most insurers require the policyholder to be the registered owner of the vehicle. However, you may be able to add someone else as a named driver, allowing them to legally drive the car while still ensuring that the borrower remains the primary policyholder.
Failing to declare the correct main driver could be considered insurance fraud, so make sure all details are accurate and transparent when setting up the policy.
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. Some specialist finance options may be available in certain circumstances, such as joint applications or guarantor finance.
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, your daughter may also be able to drive the car, as long as they are insured as a named driver. Please check with your insurance provider for specific requirements.
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. However, they must be 18 or older to secure car finance.
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, as long as you are insured correctly.
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 may be able to offer student car finance. Some of our lenders specialise in car finance for bad credit, or car finance for people on benefits, so we may still be able to help. Credit is subject to status.
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 could 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, you could! 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 could 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 named as the main borrower and 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 could still drive the car when you get home, as long as she is properly insured. Please check with your insurer for specific terms and requirements.
If you're thinking about applying for car finance, you can use our car finance calculator to get an idea of what your payments might look like.