Whether you require the use of a car but have limited credit, or earn less than your partner, you will still want the greatest chance of success in your application for a car loan. To get around this, you may be asking yourself ‘can car finance be in joint names?’
Yes, it can. To get car finance, you don’t necessarily have to be the keeper or registered owner of the vehicle – there are a selection of products available that will enable you to acquire finance in your name but have a different person nominated on the V5 registration document. This is an effective use of joint names on a car finance agreement.
Car finance in joint names to benefit a child
A select group of lenders will accept applications from parents who want to take out finance on behalf of their children using the joint names of you and your son or daughter on an agreement. You can contact our expert team with the precise details of your current circumstances and we’ll endeavour to find a solution to your situation.
Fraudulent applications for finance
It’s essential that you outline your circumstances in full before making an application. You must state clearly that your intention isn’t to be the registered keeper or owner of the car. After all, it’s illegal to take out finance for someone else and you could find yourself accused of a kind of fraud called ‘fronting’.
What is fronting?
An example of fronting is when parents applying for finance nominate themselves on the V5 certificate for registration. Once they have secured the car through finance, they alter the name registered on the V5 to their son or daughter, who becomes the driver and keeper of the vehicle.
A second case would be when one partner in a couple has a higher salary than the other. The partner commanding the bigger wage applies for car finance and puts their own name on the V5 registration certificate. Once successfully through the application process, the car is transferred over to the other partner and they become the driver and keeper of the vehicle as they always intended.
Joint applications and guarantors
Rather than risk being accused of fronting and fraud, it’s a much better approach to be upfront and apply for joint car finance, or to find a person who’ll act as guarantor for your agreement.
A guarantor is a person willing to be counted on to guarantee your monthly payments in the event of you not being able to make them at any time during the term of your car finance agreement.
If the reason you’re seeking a joint application for car finance is because your credit history is either limited or damaged in some way, a guarantor can be an ideal solution. The presence of a guarantor can make a finance company feel more secure in lending you funds, increasing your chances of a successful application.
Your chosen guarantor must be consulted and fully aware you’ve nominated them prior to your application, as their credit rating will be checked before any finance can be offered to you from the lender.
Support in your application
At Car.co.uk, we offer advice and support to car buyers looking for the right approach to securing car finance that’s a perfect fit for their circumstances. It’s always best to be clear from the start that you’ll not be the registered keeper and driver of a vehicle, so we can help you in making a joint application if you’re either a parent or a partner, or need a guarantor due to payment problems in the past