Car finance - partner poor credit

born_again

SeagullBTN said:

For the same car he is being quoted £360 a month and I could get it at £160 a month . 

Unfortunately a new car is required as it is not reliable anymore and has had issues with the battery . 

There is a total of 5k left on the DMP . The extra £200 saving will be going towards that plus what he currently pays 

Lend him £5K to pay off DMP. Then they can source a new car. No need for a £50K loan.

flaneurs_lobster

There's a discussion to be had about the scruples of the car financing industry that makes this thread even remotely credible.

Maybe borrow £50 and buy a new battery for the current motor? 

QrizB

SeagullBTN said:

Unfortunately a new car is required as it is not reliable anymore and has had issues with the battery .

Unless the current car is a complete wreck, fixing it is almost certainly the best way to solve the problem.

Even if it needs £3k of work, that's still likely to be cheaper than £35k of finance.

If it needs more than £3k of work, I'd suggest you spend £3k on a used car instead. there are plenty of them around.

MyRealNameToo

SeagullBTN said:
If the worse did happen I could cover it and believe after about 2 years you are able to hand back the car. 

It would be a PCP deal my main worry would be if we would then be linked on a credit file if he’s insured on it as the proposer. And I would be the registered keeper. 

Thanks for explaining as well that it wouldn’t work on 25k per each car. 

On HP or PCP you can give it back after 50% of the total debt, including any balloon on PCP, has been paid back. It would be unusual to be at the 2 year point, particularly on PCP, but it depends on the car, if you are thinking new/used etc. 

That also assumes you have the car, if they disappear off with it there would be no option for you to hand it back then or at the end of the agreement hence why you have to be prepared for it to be a pure gift. 

If you are the sole debtor then it won't create a financial link as you are the only one with your name on the loan. CRAs generally dont report who's gotten insurance on what vehicle and even if the insurer does report the loan for premiums it's not going to be cross referenced with who's got finance on the same car. 

I not say it won't work, just you can't assume it will just because the two value adds up to the same or less than what they have already been offered. 

Herzlos

SeagullBTN said:

For the same car he is being quoted £360 a month and I could get it at £160 a month . 

Unfortunately a new car is required as it is not reliable anymore and has had issues with the battery . 

There is a total of 5k left on the DMP . The extra £200 saving will be going towards that plus what he currently pays 

What's the car? Batteries are cheap, though if it's a rogue electrical fault it could be expensive to figure out. 

His cheapest option is almost certainly repairing the car he has now. Failing that you can buy a decent car for under £5k now so the idea of buying a £25k car is crazy. Unless I've misread it; how much are you proposing to borrow on his behalf for a car?

Goudy

First off, please stop thinking you are lowering the monthly payments by £200 or so a month, you're not.

What you are doing is introducing a monthly payment you don't have at the moment that might not be as high as what it could possibly be if you arranged it differently all for the benefit of someone else. But there are risks in doing that.

You yourself would be signing up to two car finance agreements (doesn't matter if it's car finance, bank loan or leases), one for yourself and one for your partner to drive.

Your partner wouldn't benefit from credit scoring from this, both car finance packages will be in your name no matter what name appears on the log books.

You will basically be taking out a loan/finance and buying a car for your partner.
Your partner will have no responsibility to the finance company over the loan.
If you yourself can afford this, all is well and good.
But if you can't, well you have your answer.

It's sort of commendable you want to help your partner out, I've done it myself, but I would suggest helping them clear the DMP and rebuilding their credit score far more important and beneficial for both of you going forward.

You know the old proverb of giving someone a fish or teaching someone to fish!

motorguy

The borrower must be the registered owner and the main driver of the car.

You'd be skating on thin ice in so many ways doing this.

I dont think you're even supposed to be taking out additional finance when on a DMP?  With a DMP you're basically saying "my debt has overwhelmed me and i'm doing my best to pay back what i can, as soon as i can".  Not sure where "hey, i've just got myself a car on a load of finance" fits in to that.

As has been said, lend him the money to buy a cheap car if you really must get involved but personally, i'd be steering well clear.

In the not very distant past i went through a rough patch financially for various reasons and at one point i was driving a car that cost me £70 - and that was doing 120 miles a day commute for 9 months until i could afford something better.

northwalesd

motorguy said:

The borrower must be the registered owner and the main driver of the car.

Says who??

motorguy

northwalesd said:

motorguy said:

The borrower must be the registered owner and the main driver of the car.

Says who??

The finance companies lending you the money.

"This requirement serves as a safeguard for lenders, ensuring that the person responsible for repaying the loan is also the one using the car. Some specialist finance options may be available in certain circumstances, such as joint applications or guarantor finance."

https://www.carfinance247.co.uk/guide/can-i-finance-a-car-for-someone-else-to-drive

northwalesd

That article says 'typically', so there's no hard and fast 'rule' and certainly nothing in law.