Looking for finance and wondering if you can take it out on behalf of someone else, or if someone can do the same for you? Read on to find out everything you need to know.
In short, you cannot take out car finance on behalf of someone else. But there is a little more to it than that, and there are some solutions to this predicament.
Car finance being taken out for someone else is what is known as an accommodation deal, and while it isn’t illegal, finance companies do not like being a part of these deals and will typically avoid them. This is because the person paying for the finance agreement isn’t the one using or owning the car, and so there is a greater risk of the agreement not being paid or being unable to recover the car.
So, if you are worried that you won’t be accepted for car finance, and want to bring someone else in on it with you, what can you do?
There is something called a guarantor, which is someone who will co-sign the agreement with you, and agree to pick up the slack if you fail to keep up with repayments. It is a safety net as such, and their details will be taken down as part of the agreement, along with yours, to offer some security to the finance company.
Car finance with a guarantor works very similarly to normal car finance, apart from the fact there is someone else’s name on the agreement as well as your own. You will still be able to get access to a range of deals if you are accepted, and great APR rates as well.
The thing is, car finance isn’t right for everyone but it can be a great help in getting a new used car. If you think it might be a route you want to go down, come and speak to a member of the team at We Finance Any Car and we will be happy to help you in your search.