There might be an occasion where you want to lease, or finance, a car for somebody else. Whether it be your child, your partner or someone else close to you. You could be wondering whether you can get car finance on someone else’s behalf.

Is it possible?

In this article, we look at whether you can get car finance on someone else’s behalf and alternative options.

Can I lease a car for somebody else?

There is no reason why you cannot lease a car for somebody else. Many people do it. However, it’s not always as simple as you may have hoped.

When you lease a car, the person whose name is on the finance has to be the main policy holder when it comes to insurance. This is because the person who is paying for the car has the financial interest. This means they should hold the insurance policy.

car finance on someone else's behalf

So, while you can lease a car for somebody else, you will have to be on the insurance. However, just because your name is on the policy, doesn’t mean you have to be the main driver. You can nominate a main driver and simply be a named driver, you just have to have the policy in your name.

You can change the name of the main driver no problem. However, make sure you read everything before you sign because the main driver/named driver thing can be confusing. And, if you do get it wrong then you can get into a lot of trouble.

So yes, you can lease a car or get car finance on someone else’s behalf. However, the insurance policy will have to be in your name. It does not mean that you have to be the main driver though and you can change the name of the main driver on a policy fairly easily. You can read more about insuring someone else on your lease car here.

Can I get car finance for someone else if I don’t have a driving licence?

This can sometimes happen if the person who will be driving the car can’t get approved for car finance due to their credit rating. If you have a good credit score but you don’t have a driving licence is there any chance you can finance a car for someone else?

Unfortunately, you cannot lease a car or get any form of car finance if you don’t have a valid driving licence.

We will need your driving licence when it comes to the documents process for anti-fraud purposes (you can read about processing your lease documents here). Also, most finance houses will stipulate that you need a full UK driving licence to be able to lease or finance a car.

Learner sticker with an instructor and student in the background

There may be some brokers out there that do allow you to finance a car without a licence. But we strongly recommend you exercise caution. These will be specialist vehicle brokers and it’s important you know that they are reputable. You can read our article on how to tell if your vehicle broker is reputable here.

As we mentioned above, you need to be insured on the lease car you are financing. And you can understand why finance houses will be less than thrilled to have someone who doesn’t have a full UK driving licence insured on the car they are financing. Even though you won’t be driving the car, the finance house cannot take that risk. They can’t guarantee that you won’t drive the car. Therefore, the risk is much greater.

So unfortunately, you cannot finance a car for someone else if you don’t have a driving licence. The risk is too great for the finance house and your driving licence is needed for anti-fraud purposes when it comes to the documents process.

Can I get car finance for someone if I have a provisional licence?

There have been occasions where someone has leased a car with a provisional licence but as a general rule we say you can’t. Many funders don’t allow this and it is complicated when it does happen.

Again, insurance comes into play. Although you can be insured on a car with a provisional licence, you are a considerably higher risk. And the finance house probably won’t want to take that risk. Also, it will cost you a lot more due to the higher risk.

As we said, there may be finance houses and brokers that allow this but it is rare and you should be sure that they are reputable. You can read more about leasing a car with a provisional licence here. 

What are the alternatives?

If you want to finance a car for someone else but you don’t have a full driving licence then there are alternatives. If you want to finance a car for someone because they have bad credit then you could always look at being their guarantor.

A guarantor is someone who will take on the monthly payments if the person who has the finance fails to do so. A guarantor must;

  • Be at least 21 years old
  • Have a good credit score
  • Not be financially linked to you

Being a guarantor is a great way to boost the chances of getting car finance. It is an alternative if you don’t have a valid driving licence and therefore cannot get car finance yourself. You can read more about being a guarantor here.

In conclusion, you can get car finance on someone else’s behalf but you will have to be on the insurance. This isn’t a big deal. You don’t even have to drive the car. Nor do you have to be the main driver, you just have to be the policy holder. However, you cannot get car finance for someone else if you do not have a valid UK driving licence. A way around this is by being a guarantor for the person who cannot get car finance.

Which is better as your first car: new or used?  Click here to read our verdict  

Holly Martin

Content Co-ordinator at OSV Ltd
Holly enjoys: Reading, music and spending time with friends.

Within a week of Holly starting work at OSV she became an indispensable part of the marketing team. She's very intuitive and gets on with the whole office effortlessly.
Holly Martin

10 Comments

  • Karen| 23rd June 2019 at 9:23 am Reply

    My daughter’s father is wanting to buy her first car on finance but he has no driving license can he still do so

    • Rachel Richardson| 24th June 2019 at 8:30 am Reply

      Hi Karen,
      There are ways that this can work, however he will need to speak to someone. If you get him to contact Amanda on 01903 223391 she will be able to help him to find the right finance arrangements and vehicle.

      If you would like any further information, please contact Amanda.

  • xe88.vn| 21st September 2018 at 9:30 am Reply

    It’s going to be finish of mine day, except before end I am reading this
    impressive post to improve my know-how.

  • Phil| 26th February 2018 at 4:55 pm Reply

    I’m financing a car in my name but i’m 25, if i was to insure in ny own name it would cost over 2 grand. Can i use my dads name and be the second driver? (Would cost £1,000)

    • Abbie Rawcliffe| 27th February 2018 at 12:11 pm Reply

      Due to FCA (Financial Conduct Authority) https://www.fca.org.uk/ having strict rules on advice we are not authorised to answer your question, however, you should speak to an independent Insurance Broker for further advice, such as https://www.aplan.co.uk/chichester mention our company name and they will look after you. However, can we help you with your next car? We might be able to find a car which you would love which would be cheaper to insure?

  • censina| 31st December 2017 at 12:25 am Reply

    My friend has lost her licence but has a finance car which will be hers by August.
    I have agreed to get insured on her car and drive her around but looking into it im totally confused.
    As she does not have a licence she is not insured, can i be the only one?

    • Abbie Rawcliffe| 5th January 2018 at 11:08 am Reply

      To be insured on something you must have an “Insurable Interest” which means you need to own or have some financial interest in it, therefore you need to speak to a good insurance broker and get specialist advice, we would suggest you start with A-Plan in Chichester on 01243 850880, mention us and they will advise you.

  • Charlotte| 18th September 2017 at 3:56 pm Reply

    My partner told the leasing company that he didn’t drive – however they have allowed him to lease a van. His colleague was unable to get the van in his name due to poor credit.
    we now have the van – but are unable to get it insured as my partner doesn’t have a licence – is there anyway around this?
    surely it cant be right that he was able to lease a van and get the finance approved without a drivers license?
    not sure what we can do now – can someone please help?

    • Abbie Rawcliffe| 19th September 2017 at 10:31 am Reply

      Hi Charlotte,

      Did you ever advise the leasing company that this van was for someone else and that your partner did not have a driving licence?

      If you could email me your response to abbie.rawcliffe@osv.ltd.uk we can discuss this further.

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