Car finance for 3rd party

Grumpy_chap

Nebulous2 said:

I'm struggling to get my head around this - particularly the bit in that link at the bottom of example 2 about couples. It is a very common scenario that a couple will have a high earner, possibly with a company car, and a very low or non-earner running a second or family car. How do they finance that? 

I agree, there are case where this creates unusual anomalies to what the average person would expect.  The key is it is all about whether the finance company can repossess the car based in the event of default. 

The treatment of couples has varied now quite substantially from what it was a few years back.  This is for all types of finance so far as I can  tell.

macman

It's also worth reminding the OP that the person named on the V5C is the registered keeper. Not the legal owner. A V5C is not proof of ownership.

tifo

Grumpy_chap said:

krishcanag7 said:

Hello

Is it legal or possible to:

Person A wants to buy a car but has poor credit score so cannot.

Person B agrees to sign the agrrement in person B name and ownership of car (V5 registered to personB) and make the payments (money coming via person A to B account first) to finance company. The driver is only person A

Is this an agreement a company like say VWFS would accept?

regards

krish

What you are proposing is "fronting" and is not permitted.

What may be possible is for A to have the agreement and registration of the car, but with B acting as Guarantor for A

I don't know about not permitted. The finance company don't care as long as they're getting the money. The insurer doesn't care and they're happy to insure.

I've done this and it was no problem with the finance company, insurer or dealer. My colleague took out the finance and I kept and insured the car. I told the insurance company i'm not the owner or registered keeper and chose 'finance' and 'other or family member' for these. I dealt with all parties and told them I insure and drive it but my colleague took out the finance. No one queried it. The insurer insured it and the dealer dealt with me for any problems.

MrFrugalFever

tifo said:

Grumpy_chap said:

krishcanag7 said:

Hello

Is it legal or possible to:

Person A wants to buy a car but has poor credit score so cannot.

Person B agrees to sign the agrrement in person B name and ownership of car (V5 registered to personB) and make the payments (money coming via person A to B account first) to finance company. The driver is only person A

Is this an agreement a company like say VWFS would accept?

regards

krish

What you are proposing is "fronting" and is not permitted.

What may be possible is for A to have the agreement and registration of the car, but with B acting as Guarantor for A

I don't know about not permitted. The finance company don't care as long as they're getting the money. The insurer doesn't care and they're happy to insure.

I've done this and it was no problem with the finance company, insurer or dealer. My colleague took out the finance and I kept and insured the car. I told the insurance company i'm not the owner or registered keeper and chose 'finance' and 'other or family member' for these. I dealt with all parties and told them I insure and drive it but my colleague took out the finance. No one queried it. The insurer insured it and the dealer dealt with me for any problems.

This is fronting, pure and simple and is NOT permitted, if a lender has not acted upon this and just turned a blind eye then they are in breach of their own terms and conditions and FCA regulations.