Having car finance for one of your kids.

The_Offside_Rule

Good morning all.

Is there any problem in taking out car finance for one of your kids?

Other than having finance in my name, I'll have no other connection to the car. My son will be the owner and insurance policy holder and pay for the everyday running of the car etc.

Would accept the finance from me but sign the car over to my son?
I'll be there of course.

Thanks

colino

You will have a connection with the car, you'll have to make the payments if they default and potentially have a risk to your credit rating. Either let them wait until they can get their own finance or just buy them a car. The middle ground is a pretence.

gilbert_and_sullivan

Whilst you could be guarantor for the payments, is it wise to encourage your son onto the treadmill of never ending interest payments.
Down that road lies future misery.

scotsbob

If you want to go down this route why not take out a personal loan and then lend your son the money?
That way there is no credit rating involved and no finance company involved with the car.

forgotmyname

Finance company may insist on your name being the registered keeper. Their insurance may insist they are the registered keeper.

But if you try to change the name the finance say you appear to have sold the car and want all the money now.

You could get a personal loan which is not linked to the car. Or give them the money to buy a car outright.

motorguy

rdf1988 wrote: »

Good morning all.

Is there any problem in taking out car finance for one of your kids?

Other than having finance in my name, I'll have no other connection to the car. My son will be the owner and insurance policy holder and pay for the everyday running of the car etc.

Would accept the finance from me but sign the car over to my son?
I'll be there of course.

Thanks

Cant see the finance company caring a whole pile. Lots of people do it.