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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?
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, Edwin
Can I finance a car for me but put it in my sons name who has a full time job for over a year.
He has no real credit except a great rental history because he is on my lease since he turned 18. He has insurance and a bank account and still lives with me. My credit is not so good and I have never purchased a car or filed for bankruptcy before?
You are correct in thinking that lenders will look at credit history, but it may be worth your son applying alone, as he may actually have built up some clean credit history (mobile phone contracts, insurance etc). You could always act a joint hirer or guarantor on his application too, which would strengthen his chance of approval.
Please discuss this with your son, and if he wishes to, he can make an application .If approved, you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Edwin