Car finance

dsme94

Hi,

I am considering taking a car out on finance for my Mum, I was wondering how this will go down with my credit file? Obviously they will look into my salary and my ability on being able to afford the car but it will not be me that is paying for it, should I put in the application under additional income as the price of the finance a month?

robber2

if the car is for yorr mum and she plans to pay for it would it not make more sense for her to apply for the finance?

dsme94

robber2 wrote: »

if the car is for yorr mum and she plans to pay for it would it not make more sense for her to apply for the finance?

That would make sense but unfortunately she wouldn't get the finance due to her financial past whereas I will....

cajef

If she has got a bad financial past what makes you think she will continue paying for it, if she does not as the agreement will be in your name can you afford to pay for it?

markfj

Maybe depending on how much the car is a 0% interest credit card might work better?

barclaysguy

Be carefull if its hire purchase contract as this would be known as a fronted deal and could lead to the finance company defaulting the agreement.

dsme94

cajef wrote: »

If she has got a bad financial past what makes you think she will continue paying for it, if she does not as the agreement will be in your name can you afford to pay for it?

Financial circumstances have changed

markfj wrote: »

Maybe depending on how much the car is a 0% interest credit card might work better?

We are looking at a brand new car as we cannot be bothered with the hassle of an old one.

barclaysguy wrote: »

Be carefull if its hire purchase contract as this would be known as a fronted deal and could lead to the finance company defaulting the agreement.

I will also be making use of the car, does that change anything?

DCFC79

dsme94 wrote: »

We are looking at a brand new car as we cannot be bothered with the hassle of an old one.

Its not given that old cars will give you trouble at some point.

My car is 12 years old and nothing has gone wrong except for the usuals eg tyres, brakes etc.

barclaysguy

I think what the finance company would look at if they had a problem with it is, whos on the v5, the main insurance holder. Check the contract to see if it says if you have to be the main keeper.

CLAPTON

dsme94 wrote: »

Hi,

I am considering taking a car out on finance for my Mum, I was wondering how this will go down with my credit file? Obviously they will look into my salary and my ability on being able to afford the car but it will not be me that is paying for it, should I put in the application under additional income as the price of the finance a month?

no you can't add her payments as additional income

only go ahead if you are totally confident you can afford the payments if your mother can't make them for any reason whatsoever.
remember that any missed payments etc will trash your credit record and not your mothers

dsme94

DCFC79 wrote: »

Its not given that old cars will give you trouble at some point.

My car is 12 years old and nothing has gone wrong except for the usuals eg tyres, brakes etc.

Older cars are definitely prone to something going wrong and there is no denying it, I just don't want to deal with it when there's a problem.

barclaysguy wrote: »

I think what the finance company would look at if they had a problem with it is, whos on the v5, the main insurance holder. Check the contract to see if it says if you have to be the main keeper.

Thanks for that, much appreciated. It wouldn't be a problem being the registered keeper but insurance policy holder would be.

CLAPTON wrote: »

no you can't add her payments as additional income

only go ahead if you are totally confident you can afford the payments if your mother can't make them for any reason whatsoever.
remember that any missed payments etc will trash your credit record and not your mothers

I can afford it but I don't want this to have a negative impact on my ability of obtaining finance for my own car, which is why I need this advice.