Car finance on behalf of another person?

chubsta

rtho782 wrote: »

If I were you I'd take out the finance and have the garage put it in your name, then change the keeper to her afterwards.

Im a little old-fashioned and would prefer everything to be above board, plus, i don't really want to add another keeper to the car... I guess the best route is to just save up over the summer whilst she is learning to drive - we haven't totally decided yet as to whether to get a new car or one a year or so old as then we save because of the depreciation it has had - if i buy second hand ill just buy it cash, and if new from a main dealer and then make up any shortfall in the savings using my credit card.

I would have liked to have spread the cost for longer but i guess this way at least won't owe anything on the car other than a couple of months payment to the credit card at most...

thanks for everyones input...

rising_from_the_ashes

I would say as a new driver (even when she's passed her test) I wouldn't go for a brand spanking new one as the insurance costs are likely to be huge....

Also, it's putting a lot of pressure on not to have an "incident" .... my first car was a (loveable) heap, I kept it a year until my confidence was higher etc and then bought a newer one.

chubsta

rising_from_the_ashes wrote: »

I would say as a new driver (even when she's passed her test) I wouldn't go for a brand spanking new one as the insurance costs are likely to be huge....

Also, it's putting a lot of pressure on not to have an "incident" .... my first car was a (loveable) heap, I kept it a year until my confidence was higher etc and then bought a newer one.

Funnily enough, when talking about it today she mentioned that she would be happy with any old car as it would be a present, the idea for a new one comes from me as i need to feel confident that she won't break down - i have had enough heaps in my time to know how horrible it is to be stuck somewhere, in my case it was long before mobile phones!

I have checked out insurance and although high, its not out of reach, and another one of my reasons for it being 'her car' instead of just getting it myself and adding her onto the insurance is that it is then up to her what happens to it - if she crashed my car i would be mortified (daily car) or heartbroken (sports car), but if its hers to start with then well, not my problem!

silo24

HP/Car Finance Companies now get monthly reports of changes to the registration details of vehicles associated to their finance. This includes Registered Keeper and Registration Marks.

I suspect if they saw a different name to that the finance is in they would come a knocking. It may not be an issue, but it could be....

Paul_the_Painter

I'd buy - something - anything really for about £2000, make sure she's got AA or whatever cover, and have her drive around in that for a year.

There is no way I would have wanted a new car (or even recent!) for my first car.

In the meantime stick £500/month in the car fund (separate savings account) and leave it up to her when to "cash in" and buy the car she wants.

Assume the car would be worth £1000 come trade in time, perhaps a bit more if she doesn't prang it, and waits the full year and sells with fresh MoT.

After driving for a year, she'll have a much better idea of what she wants, and can choose at leisure.

goaroundnow

I haven't read all the replies but have a got a taster.

I have twice bought cars (1 new, 1 secondhand) from mainline (VW) dealers.

On BOTH occasions the finance was in my Mother's name but the car was registered to me.

In other words, she signed all the finance paperwork but I signed all the registration documentation etc. The V5 came in my name as did anything ever sent from the dealer or VW.

I believe if there is finance attached to a car, the finance company is the legal owner until a certain proportion has been paid off. You can register it to anyone you please.