Most lenders won’t let you finance a car if someone else is going to be the registered keeper. That’s because car loans are tailored to an individual and based on their personal financial circumstances. If you try to take out a loan for someone else and don’t tell the lender, you could be guilty of fronting, which is a type of fraud.
Can I buy a car on finance for someone else?
A car finance deal is a bit like a tailored suit, it’ll be the perfect fit for you but anyone else might struggle with the sizing.
Every loan is based on your individual circumstances and the car you’re buying. Your income, your employment status, your credit history – it’s all about you.
That’s why most lenders will ask that the person signing the car finance agreement is the same person as the car’s registered keeper.
Some lenders can offer accommodation finance, which is when you take out a car finance loan but tell the lender that someone else will be the car’s registered keeper. But they’re rare – accommodation finance deals are seen as too risky as there’s no guarantee they’ll be able to get the car back if anything goes wrong.
If I buy a car on finance, can someone else be the registered keeper?
Let’s look at the different circumstances that might lead you to want to buy a car on finance for another person:
As a parent, can I buy a car for my child?
It’s completely understandable that you might want to give your child a helping hand when it comes to buying their first car. If they’re in their late teens or early twenties, they might not have a very well-paying job (or any job if they’re a full-time student) and their credit history could be thin. It’s pretty unlikely, given those circumstances, that they could get approved for car finance on their own.
While you can’t take out a finance agreement on their behalf (that’s known as fronting and it’s a type of form), you could help them out by agreeing to be the guarantor in a guarantor loan or applying together for a joint car finance deal.
Can I buy a car for my partner?
The same rules apply if you are hoping to help a partner who has a low income or a bad credit score. While you can’t take out finance on their behalf, you could support their application.
Can I buy a car with someone else?
You can apply for joint car finance to buy a car with another person. With joint finance, you’ll both be equally responsible for repaying the loan and both your circumstances will be considered when the lender is assessing your eligibility.
How can I help someone buy a car on finance?
There are a couple of different types of car finance that mean the borrower won’t have to go it alone:
Joint car finance
Joint car finance means two people are equally responsible for the agreement and either of them can be the car’s registered keeper. The payments don’t have to be split 50/50 – all that matters is that they get paid in full each month. Once the contract ends, you’ll both own the vehicle. You may also need to live at the same address.
Guarantor car finance
With guarantor car finance, the deal will be in the registered keeper’s name, but they’ll have a guarantor in place, someone who is happy to step in and make the repayments if they can’t. Once all the payments have been made, the person who signed the agreement – not the guarantor – will own the car. Guarantors usually need to have a good credit score to qualify and, depending on the lender’s criteria, might have to be a homeowner too.
Who is responsible for looking after the car?
The registered keeper of a car is responsible for all the everyday costs that come with car ownership. That means paying for the annual service and MOT, any repairs, fuel, and road tax. You’ll also need to make sure you’re insured to drive.
Can I change who is the registered keeper on a car?
If you want to change the registered keeper on a car on finance, you’ll need to let the lender know first. You’ll still need to complete all the required sections on the car’s logbook (V5C) but making these changes without letting the lender know could break the terms and conditions of your agreement.