HP in my dad's name, but my car?

Thomas_C_2

Hello,

I can't get finance so my dad is going to get finance with Black Horse for a car.

My current car is on finance, but we're settling that to get this other car.

I will pay my dad the monthly price as I have done with my current car.

I will be the only driver of this car though.

Is this OK?

Will the finance company have any problems with this or don't they like it?

thank you

Herzlos

In general there's no issue with the owner being different from the driver (I'm not the registered keeper or my car).

But you'd need to check with the finance company and insurers, as they may or may not have issues with it.

McKneff

Herzlos wrote: »

In general there's no issue with the owner being different from the driver (I'm not the registered keeper or my car).

But you'd need to check with the finance company and insurers, as they may or may not have issues with it.

Exactly this, not sure that you can insure a car that you have no financial interest in. Please note, I did say 'not sure' but I am happy to be corrected.

OddballJamie

If your Dad has a good credit history, is a personal loan an option?

Thomas_C_2

OddballJamie wrote: »

If your Dad has a good credit history, is a personal loan an option?

He has struggled to get a personal loan so not really an option.

Have explored it.

I want the payments to come out of my bank anyway, but not sure you can do this as the finance is in his name.... does it matter how it gets paid?

I give my dad the money anyway. I've just given him cash with my finance on my current one, but will be setting up a direct debit out of my bank to his.

If the finace could just come directly out of my bank then it would be better, but not sure if Black Horse would allow that.

neilmcl

Herzlos wrote: »

In general there's no issue with the owner being different from the driver (I'm not the registered keeper or my car).

But you'd need to check with the finance company and insurers, as they may or may not have issues with it.

In reality the finance company is the owner, only until the HP has been settled does the OP's dad become the owner. So yes, he'll need to check with the finance co.

Herzlos

Thomas_C wrote: »

He has struggled to get a personal loan so not really an option.

Have explored it.

I want the payments to come out of my bank anyway, but not sure you can do this as the finance is in his name.... does it matter how it gets paid?

I give my dad the money anyway. I've just given him cash with my finance on my current one, but will be setting up a direct debit out of my bank to his.

If the finace could just come directly out of my bank then it would be better, but not sure if Black Horse would allow that.

The finance company will probably want the payments to come out of the bank account of the person taking out the finance, but there's nothing stopping you setting up a standing order to pay it into your dads account and him paying the finance.

neilmcl

Thomas_C wrote: »

He has struggled to get a personal loan so not really an option.

Have explored it.

I want the payments to come out of my bank anyway, but not sure you can do this as the finance is in his name.... does it matter how it gets paid?

I give my dad the money anyway. I've just given him cash with my finance on my current one, but will be setting up a direct debit out of my bank to his.

If the finace could just come directly out of my bank then it would be better, but not sure if Black Horse would allow that.

If he's struggled to get a personal loan what makes you think he's going to get credit for an HP loan?

Thomas_C_2

neilmcl wrote: »

If he's struggled to get a personal loan what makes you think he's going to get credit for an HP loan?

I don't know.

He's applied a few times and been refused or they've been really high rates.


They've agreed a rate with him just got to confirm it which I am happy with.

OddballJamie

neilmcl wrote: »

If he's struggled to get a personal loan what makes you think he's going to get credit for an HP loan?

Kids today. When I was younger I had to save up my pocket money and do jobs around the neighbourhood if I wanted something nice. Nowadays they just get their parents into debt for things.

AnnieO1234

Certainly never had an issue on HP direct from BMW with their finance for this scenario.

To answer a PP above a car finance loan is secured against the car and if it is defaulted on Black Horse will have the car picked up by bailiffs. Hence it's a secured loan versus an unsecured personal loan.

A