How can I get car finance for myself through a parent without a driving licence?

Shatzy08 · 17 August 2018 at 4:13PM

Hi, i am currently on an Iva and had to scrap my old car. My mum has offered to get me the finance for another car, however she does not have a licence, so for most lenders this is a requirement. Is there way she can obtain the finance, or become guarantor so I can get the car through her? My father has a licence but is absolutely no good with these types of things and won't want to deal with the stress. Could she obtain one with his drivers licence on his behalf putting the car in his name, with me as a named driver? Desperately need transport as I have 3 kids to ferry about any help is much appreciated

National_Debtline · 17 August 2018 at 4:44PM

Hi Shatzy08 and welcome to MSE,

There are several things to consider in this situation. First of all, if you would be expected to pay your parents for the car on a monthly basis that could be a problem. Likewise, if you took out the finance and they acted as guarantor. You would need to check the terms and conditions of your IVA carefully, but most will say that you cannot take on new debt during the course of an IVA, causing it to fail. Paying your parents would be a new debt. Of course, if they are able to make the monthly payments then that isn't an issue.

You should do a bit more research regarding the type of finance. If it is made clear that only the finance is in your mother's name, and you will be the registered keeper of the car, then are you sure she needs a licence? Also is car financing the only way they can help you? If it was possible for them to buy something outright, perhaps just a cheap 'run around' for now, then the finance and IVA are less of a concern. Good luck,

Laura
@natdebtline

sourcrates · 17 August 2018 at 4:55PM

She would be better served obtaining a loan for you, which they would have to repay, just get something cheap.

Or save up from your allocated budget and buy a cheap runaround.

Any other option would cause you serious issues with your IVA.

Shatzy08 · 17 August 2018 at 7:45PM

Thanks for the reply Laura, I would be paying the finance with help from my partner who is nothing to do with my iva, as we are not married, so my thought was not to inform them as his circumstances are technically none of their business. But he already has his own finance and obligations trying to sort a mortgage which is why we are going through my mother rather than him. Ive read you need a full UK driving license for finance but she doesn't drive. I suppose she could get me a loan but I preferable wanted a new car with all the cover for repairs if needed?

Shatzy08 · 17 August 2018 at 7:48PM

Ok thanks. The IVA wasn't really my concern as my partner would be technically paying fir the car and he is not involved with the iva as we're not married. I will look into loan options aswell.

ratrace · 18 August 2018 at 9:13PM

I think its best just to try and buy a car for £1,000 or £1500 if you can go for a cheaper brand such as toyota or ford as parts are very cheap compared to german brand as an example

we bought a toyota yaris 2007 5 door 1.4 diesel £30 road tax

cheap to tax, cheap to insure, cheap to fix, cheap to run

it costs us £1750 all in including 12 months mot

dont get finance and dont get mum to take antything out in her name this never ends well... trust me if someone told me this before i got into debt it would have made a huge diffrence

Craig1981 · 19 August 2018 at 7:15AM

agree with rat race. there are reasons why you are under an IVA in the first place - why take out debt you cannot afford, and this will be with a family member, not mainstrean lenders!

even though your partner will be paying, for him etc, have you looked at worst case scenario? what happens if you break up? he has a car with no responsibility of having to repay, as loan not in his name. or, if car in your name and you split up, you now in an IVA, with a car, and your mum is stuck with the debt? not trying to sound harsh, but you must look at it at every angle possible

money and family rarely mix well together... get something reliable for cheap plenty of good deals out there

macman · 19 August 2018 at 9:44AM

What sort of finance are you seeking? Unless I'm missing something here, why do you need a driving licence to get a loan, other than as a form of ID?
You don't have to finance through a dealer on PCP or HP, you can get a personal loan.
However the advice given to buy a car for a grand or so is sound. When you buy a new car, up to 30% comes off it's value in the 1st year through depreciation. You cannot afford it.

sourcrates · 19 August 2018 at 11:54AM

Shatzy08 wrote: »

I suppose she could get me a loan but I preferably wanted a new car with all the cover for repairs if needed?

Your in an IVA, presumably because you had serious unmanageable debt, now you want to add another large sum to the family debt to buy a car ?

That is a seriously bad idea on so many levels, you do not appear to of learnt any lessons from this experience thus far, someone in your position would be quite justified in raking together say £1000 to buy something to get you around in, but not a brand new car !!!

That is way out of the ball park, even if its not technically your debt.

PrettyKittyKat · 19 August 2018 at 6:36PM

I agree with what the others have said. It sounds like you have no learned from your IVA and are still trying to use credit to maintain your lifestyle, this is a very slippery slope and to drag a family member into it as well is very silly. What happens if you and your partner split up? If his mortgage payment goes up? If he looses his job? etc etc.

How far into your IVA are you? What is your monthly repayment? It could be possible to speak to the IVA company regarding the situation and see if you could take a payment break or two so that you have the funds to buy a cheaper car, there is no need to spend thousands on a car.

Also, how much did you manage to scrap your old car for? This is the start of your 'pot' for your new car and you are best to provide evidence of this to your IVA company as it will have been listed as an asset on your IVA. I am guessing the amount was low, so no action may be required, however it says any confusion or questions later down the line.

Clouds88 · 19 August 2018 at 8:29PM

I agree with the others, please think about this sensibly. I am currently bankrupt and I never want credit again in my life, or to put my family in that position.

We have one run around car, I pay £2 tax, £14 insurance and £2 breakdown a month. Petrol is cheap too. That means you!!!8217;ll have more money in case it goes wrong and if it goes really wrong scrap it and start again.

How can I get car finance for myself through a parent without a driving licence?

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