Finance in my partner's name

rmg1

Hi all

I'm looking to buy a used car but need finance. 

I'll be the registered keeper of the car but the finance will be in my partner's name. 

I've just been told by the dealer that this is potentially illegal (but they didn't say why).

We've done this before so I don't understand what the problem could be. 

Can anyone offer any advice please?

TIA

Richard 

EssexExile

As far as I know it's not illegal but some finance companies & some insurance companies may not like that the owner & registered keeper are different people.

Herzlos

It's against the contracts at least, though I'm not sure if actually illegal.
No finance company will allow the purchaser and keeper to differ. You'd need to either make your partner the registered keeper, you named in the finance, or have partner take out a bank loan to pay for the car.

Car_54

It why do you want to be the RK? It would be very straightforward otherwise.

Mercdriver

It's partly to do with the loan being secured on the car, but also because it is your partner that has been approved for the finance and not you.  When you do this without their permission then it can be seen as fraudulent because the loan has been given to someone who they might not necessarily have approved it to.   Why doesn't your partner get a personal loan which wil be less complicated and at the same time likely be cheaper than finance at a dealers.  

rmg1

Herzlos said:

It's against the contracts at least, though I'm not sure if actually illegal.
No finance company will allow the purchaser and keeper to differ. You'd need to either make your partner the registered keeper, you named in the finance, or have partner take out a bank loan to pay for the car.

Yes they will, like I said in the OP, we've done this before. 

Car_54 said:

It why do you want to be the RK? It would be very straightforward otherwise.

My partner doesn't drive, and I've been the registered keeper for vehicles in the same situation. 

Mercdriver said:

It's partly to do with the loan being secured on the car, but also because it is your partner that has been approved for the finance and not you.  When you do this without their permission then it can be seen as fraudulent because the loan has been given to someone who they might not necessarily have approved it to.   Why doesn't your partner get a personal loan which wil be less complicated and at the same time likely be cheaper than finance at a dealers.  

My partner does know about the finance (and has been in the previous situations). The guy from the dealer also spoke to my partner to confirm all the details 

Mercdriver

rmg1 said:

Herzlos said:

It's against the contracts at least, though I'm not sure if actually illegal.
No finance company will allow the purchaser and keeper to differ. You'd need to either make your partner the registered keeper, you named in the finance, or have partner take out a bank loan to pay for the car.

Yes they will, like I said in the OP, we've done this before. 

Car_54 said:

It why do you want to be the RK? It would be very straightforward otherwise.

My partner doesn't drive, and I've been the registered keeper for vehicles in the same situation. 

Mercdriver said:

It's partly to do with the loan being secured on the car, but also because it is your partner that has been approved for the finance and not you.  When you do this without their permission then it can be seen as fraudulent because the loan has been given to someone who they might not necessarily have approved it to.   Why doesn't your partner get a personal loan which wil be less complicated and at the same time likely be cheaper than finance at a dealers.  

My partner does know about the finance (and has been in the previous situations). The guy from the dealer also spoke to my partner to confirm all the details 

Who would be making the repayments?   The point is that your partner is the one being credit checked, not you.  So she should be the one that is the registered keeper of the vehicle in many finance houses eyes.  If they will only agree to finance under those circumstances and you decide that you will try and find a way around that without the finance company's consent, then I can see the dealer's reluctance.  
You do not need to be a driver to be the registered keeper, and while it might draw a question from an insurer on quotation/takeup of policy, it shouldn't affect you if your partner is registered keeper.  

I ask again, why doesn't your partner just get a personal loan and hand the money to you?  If your partner has a decent credit history, they should be able to get a loan at 3% or less which is better than most car dealers' used car rates.

Marvel1

Mercdriver said:

I ask again, why doesn't your partner just get a personal loan and hand the money to you? 

Going way off topic, but I feel for the partner if they break up.

motorguy

rmg1 said:

Herzlos said:

It's against the contracts at least, though I'm not sure if actually illegal.
No finance company will allow the purchaser and keeper to differ. You'd need to either make your partner the registered keeper, you named in the finance, or have partner take out a bank loan to pay for the car.

Yes they will, like I said in the OP, we've done this before. 

Car_54 said:

It why do you want to be the RK? It would be very straightforward otherwise.

My partner doesn't drive, and I've been the registered keeper for vehicles in the same situation. 

Mercdriver said:

It's partly to do with the loan being secured on the car, but also because it is your partner that has been approved for the finance and not you.  When you do this without their permission then it can be seen as fraudulent because the loan has been given to someone who they might not necessarily have approved it to.   Why doesn't your partner get a personal loan which wil be less complicated and at the same time likely be cheaper than finance at a dealers.  

My partner does know about the finance (and has been in the previous situations). The guy from the dealer also spoke to my partner to confirm all the details 

"Yes they will, like I said in the OP, we've done this before." - on that occasion, did you ask the finance company first, or just go ahead and do it?
They are particularly jumpy about this sort of stuff - effectively they're credit checking against one person, and giving the car to another.  I've heard of instances where when the finance company twig whats happening they ask for payment in full or return the car.
I would definitely speak to the finance company and get their written permission.

Mercdriver

motorguy said:

rmg1 said:

Herzlos said:

It's against the contracts at least, though I'm not sure if actually illegal.
No finance company will allow the purchaser and keeper to differ. You'd need to either make your partner the registered keeper, you named in the finance, or have partner take out a bank loan to pay for the car.

Yes they will, like I said in the OP, we've done this before. 

Car_54 said:

It why do you want to be the RK? It would be very straightforward otherwise.

My partner doesn't drive, and I've been the registered keeper for vehicles in the same situation. 

Mercdriver said:

It's partly to do with the loan being secured on the car, but also because it is your partner that has been approved for the finance and not you.  When you do this without their permission then it can be seen as fraudulent because the loan has been given to someone who they might not necessarily have approved it to.   Why doesn't your partner get a personal loan which wil be less complicated and at the same time likely be cheaper than finance at a dealers.  

My partner does know about the finance (and has been in the previous situations). The guy from the dealer also spoke to my partner to confirm all the details 

"Yes they will, like I said in the OP, we've done this before." - on that occasion, did you ask the finance company first, or just go ahead and do it?
They are particularly jumpy about this sort of stuff - effectively they're credit checking against one person, and giving the car to another.  I've heard of instances where when the finance company twig whats happening they ask for payment in full or return the car.
I would definitely speak to the finance company and get their written permission.

There was an instance of it on this forum a year or two back where the finance company repossessed the car

Car_54

rmg1 said:

My partner doesn't drive,

That doesn't stop her being the RK.