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.
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.
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.
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